Due to the Russia-Ukraine war, the exports came to a halt and almost stopped due to the uncertainty. The war between Russia and Ukraine has brought a great deal of trouble for India. The war is causing an outbreak of problems for farmers and manufacturers. The invasion of Russia over Ukraine disturbed the supply chain across the globe.
The European Union, in its latest sanctions against Russia, has decided to ban the export of goods and technology that could be used in oil exploration and production in Russia. The European Union lost its patience with Russia and announced that it would be imposing sanctions on Russia for its behavior in Ukraine. European Union bans exports to Russia after the war on Ukraine. Europe is Russia’s largest trading partner, 30% of Russia’s imports are from the EU, it is not only the EU, the USA has banned exports to Russia for Putin’s regime. The European Union and Russia are in response to the tension in the Ukraine crisis. The European Union has banned the export of goods to Russia that could have military use.
Amid the war, European Union imposed a ban on many food commodities in Russia and imposed trade restrictions. Russia suffered a shortage of many food products due to the ban by European Union. As the United States, the United Kingdom, the European Union, and the G7 nations have put sanctions on Russia because of the ongoing war Russia finds hope from India to deal with the rising demand for food products.
India exported US$95 million worth of tea to Russia last year, rice worth US$69 million, and coffee worth US$6.5 million. India also exports grapes for around US$39 million to Russia in 2021.
How does India resume export to Russia?
- India resumes exports of tea, rice, coffee, and fruits to Russia. Exports Agriculture of marine products and confectionery shipping will also be restarted soon.”We have just shipped 60 containers of non-basmati rice to Russia, each weighing 22,000 kg, and tea, fruits, confectionery, marine products, and coffee to Russia. The number of exports has been very low in comparison to what happened earlier said Ashwin Shah, director at Shah Nanji Nagji Exports.
- Due to the presence of banks in India, bilateral trade payments are possible as the banks are led by Russia’s Sberbank.
- The trade resumed under the Rupee-Ruble route, around 60 containers of basmati rice were shipped to Russia, said one of India’s leading exporters.
- Approximately, five containers of tea have also been shipped to the country.
- All the transactions were possible due to bilateral trade allowed by Sberbank moving through ports in Georgia.
- All the exports were happening for the first time since the time the war started between Russia-Ukraine on 24 February.
- Moscow also needs to maintain their foreign currency Reserve, therefore, India is also importing low-cost fuel oil from Russia. India is maintaining its relationships with Russia as both the countries require to trade with each other.