U.S. and Europe Continue Billions in Trade with Russia Amid Ongoing War

Economic Tensions and Trade Dynamics Amid the Russia-Ukraine Conflict

As the Russia-Ukraine war continues, global economic relationships are being redefined. US President Donald Trump has recently signaled a potential increase in tariffs on India, as well as other nations that continue to trade with Russia. This move is part of an effort to pressure Moscow to end the conflict. However, the United States and Europe themselves still engage in significant trade with Russia, even though these volumes have dropped sharply since the war began.

India has expressed concerns over being targeted for higher tariffs, arguing that it is unfair given that other countries also maintain economic ties with Russia. Despite this, India’s trade with Russia has surged, particularly in the energy sector. In 2024, India imported $67 billion worth of goods from Russia, with petroleum products making up a large portion of this trade. Russian oil now accounts for 36% of India’s crude oil imports, surpassing any other source.

In contrast, trade between the United States and Russia has seen a dramatic decline. According to data from the US Bureau of Economic Analysis (BEA) and Census Bureau, US imports from Russia fell by about 90% since the invasion. However, the US still imported $3 billion worth of goods from Russia in 2024. Key areas of trade include fertilizer, palladium, and uranium.

US Trade with Russia

• Fertilizer: The US imported $927 million in fertilizer in the first half of 2025, with Russia supplying key products like urea, UAN, and potash. Analysts suggest that unless sanctions are extended, this trade could continue.
• Palladium: Despite a drop in imports since 2021, the US still imported $878 million in 2024 and $594 million through June 2025. Palladium is used in catalytic converters and industrial applications.
• Uranium and Plutonium: The US imported $755 million in uranium and plutonium from Russia in 2025, highlighting continued reliance on Russian nuclear materials.

European Trade with Russia

The European Union has significantly reduced its dependence on Russian imports, but some sectors remain critical:

• Oil: Russia was once the EU's largest oil supplier. After the invasion, the EU imposed bans on maritime oil and refined products, leading to a sharp decline in imports. In Q1 2025, oil imports fell to $1.72 billion, down from $16.4 billion in 2021.
• Natural Gas: While the value of Russian natural gas imports increased due to price hikes, the EU has diversified sources, reducing its reliance on Russian gas.
• Iron and Steel: Russia’s share of iron and steel imports to the EU has declined sharply, with imports dropping to $850 million in Q1 2025.
• Fertilizer: Unlike the US, the EU has not imposed strict sanctions on Russian fertilizer, leading to stable import levels.
• Nickel: Despite diversification efforts, the EU still imports $300 million in nickel from Russia annually.

Western Companies Still Operating in Russia

Despite widespread sanctions, hundreds of Western companies continue to operate in Russia. Notable American firms, including top 100 companies, remain active. Similarly, many European businesses, including consumer brands and software companies, have not exited the market. These companies contribute relatively little in tax revenue to the Russian government, but they help sustain aspects of daily life for Russians.

Jeffrey Sonnenfeld of the Yale School of Management notes that corporate exits can bring the realities of the war closer to the Russian people, challenging Putin’s narrative of a functioning economy.

Energy Imports: India and China

India and China have both increased their energy imports from Russia, especially after Western countries reduced their purchases. Indian imports of Russian oil and gas have risen dramatically, with Russian oil now making up a significant portion of India’s market. China, too, has ramped up its purchases, with Russian crude accounting for 13.5% of its total imports.

In 2024, China imported roughly $130 billion in Russian goods, with petroleum products forming a large share of this trade. These developments highlight how the shifting dynamics of global trade are reshaping economic relationships in the wake of the Russia-Ukraine conflict.