India and Russia Discuss Shipping via Northern Sea Route

19 April 2023

India and Russia are looking ahead to expand the use of the Northern Sea Shipping route for boosting bilateral trade. This shipping route passes through the Arctic Ocean. Both countries want reliable and safe transportation of goods through the Northern Sea Route using Russian and Indian ports. India, which has not explicitly condemned Russia’s invasion of Ukraine, emerged as the largest buyer of Russian oil after China last year. According to a report, India’s trade with Russia increased substantially in 2022 as the country’s imports from Russia stood at USD 46,342 million, a rise from USD 8,695 million in 2021.   

The Northern Sea Route runs along Russia’s northern coastline and is the shortest shipping route between East Asia and Europe, offering substantial cost savings. Russia wants the route to becoming a major shipping lane and has invested heavily in infrastructure there. How much does Russia trade with Asia and Europe? Look at the data visualization.

 

India’s Trade with Russia in the Last 5 Years

India’s imports from Russia increased drastically in 2022 after Russia’s invasion of Ukraine which pushed the total trade between the countries to a whopping USD 49,871 million. Crude oil was the top contributor to India’s imports from Russia. As far as exports to Russia are concerned, India shipped USD 3,529 worth of goods to Russia in 2022, a marginal rise as compared to the previous year. Below given chart shows data visualization of India’s trade with Russia in the last five years.

 

India’s Trade with Russia by Commodity 2022

What does India imports from Russia and export to Russia? According to our report, India exported medicaments for therapeutic or prophylactic purposes the most to Russia in 2022. After Russia’s invasion of Ukraine began in Feb 2022, many countries including the European Union put sanctions on Russia and banned Russian goods, particularly gas and energy commodities. India emerged as the largest buyer of Russian crude oil. In fact, India imported crude petroleum oil worth USD 24,988 million from Russia in 2022. Here is a list of commodities that India imported from Russia and exported to Russia in 2022 with their values.

 

India’s Imports of Russian Oil in the Last 5 Years

India emerged as the largest buyer of Russian crude petroleum oil in 2022 after Russia’s invasion of Ukraine. In 2018, India imported Russian oil worth USD 1,221 million, that dollar amount increased to USD 24,988 million in 2022. Analyze year-wise values of India’s imports of crude oil from Russia.

 

Undoubtedly, the initiative of India and Russia to expand the use of the Northern Sea Shipping route will be an advantage to boost bilateral trade. Both countries want reliable and safe transportation of goods through the Northern Sea Route using Russian and Indian ports.