Sanctions, logistics issues take a toll on India's exports to Russia

Oil imports drive surge; engineering exports dip as sanctions, logistics, and market access hamper outbound growth

Even as India’s merchandise trade with Russia expanded sharply since the onset of the conflict with Ukraine in February 2022, export growth remained in the slow lane owing to sanctions pressure, disruption in logistics and market access issues. 

Total trade between India and Russia rose from $8.73 billion in FY22 to $68.7 billion in FY25, mainly due to New Delhi’s oil purchases, government data showed. 

Inbound shipments rose from $5.48 billion in FY22 to $63.8 billion in FY25, while exports grew from $3.5 billion to only $4.88 billion, according to commerce department data.