The Russia-Ukraine military conflict will have an implication on the country’s trade as it would affect the movement of consignments, payments and oil prices, according to exporters.
The Federation of Indian Export Organisations (FIEO) said they have asked exporters to hold their consignments to the region or goods that take the Black Sea route.
To Russia, Ukraine and other eastern European countries, goods move from the Suez Canal and the Black Sea, FIEO Director-General Ajay Sahai said. He added that the quantity of impact on trade will depend on the duration of the war.
“This is a major setback to trade as it was recovering from the COVID-19 pandemic. Exporters are cautious in dealing with their trade-in in that region. The war will affect both movements of goods, payments and oil prices,” Sahai said.
India’s main imports from Russia include fuels, mineral oils, pearls, precious or semi-precious stones, nuclear reactors, boilers, machinery and mechanical appliances; electrical machinery and equipment and fertilisers.
India’s bilateral trade with Ukraine stood at USD 2.3 billion so far this fiscal, as against USD 2.5 billion in the last fiscal.
The main items of Indian import from Ukraine are agriculture products, metallurgical products, plastics and polymers, etc., while pharmaceuticals, machinery, chemicals and food products, etc., are the major Indian exports to Ukraine.
