U.S. and EU Struggle to Reduce Dependency on Russian Commodities Amid Ongoing Trade Wars

The United States is contemplating imposing an additional 25% tariff on imports from India, as well as increasing tariffs on Russian oil purchases by other countries, in a bid to compel Moscow to cease hostilities in Ukraine. However, it’s worth noting that despite these measures, the US and Europe continue to engage in substantial trade with Russia, albeit at a lower scale compared to pre-war levels.

India has expressed concern over the proposed tariff hike, deeming it unwarranted given that numerous nations still conduct business with Russia.

Trade between Russia and the US plummeted by approximately 90% since the Kremlin initiated its full-scale invasion of Ukraine. Nevertheless, last year, the US imported $3 billion worth of goods from Russia, according to data from the US Bureau of Economic Analysis (BEA) and Census Bureau.

On the other hand, the European Union (EU) imported €36 billion ($41.9 billion) of goods from Russia in 2024, as per data from the EU’s statistics agency. It’s noteworthy that the EU has made considerable strides to reduce its reliance on Russian imports, with EU imports from Russia decreasing by 86% between the first quarters of 2022 and 2025, according to Eurostat data.

Kimberly Donovan, director of the Economic Statecraft Initiative at the Atlantic Council, noted that while the volume of EU-Russia trade remains significant, the EU has been successful in reducing its dependence on Russian imports.

In terms of specific commodities, the US still heavily relies on Russia for certain types of chemical fertilizers, such as urea, urea ammonium nitrate (UAN), and potassium chloride muriate of potash, also known as potash. Unless sanctions are imposed on Russian fertilizer imports, this trade is likely to continue, according to Allan Pickett, head of fertilizer analysis at S&P Global Commodity Insights.

The US also imports significant quantities of palladium and uranium/plutonium from Russia. Additionally, Russia was the largest supplier of petroleum to the EU prior to the war, although EU oil imports from Russia have since been curtailed due to a ban on maritime Russian oil imports and refined oil products like diesel.

The value of natural gas imports from Russia has increased over the past four years due to price hikes, reaching €4.49 billion ($5.23 billion) in the first quarter of 2025, according to Eurostat data. However, the EU has managed to slightly reduce Russia’s market share of liquefied natural gas imports since 2021, while simultaneously increasing the US market share.

Iron and steel imports from Russia have also declined sharply in the EU, with iron and steel imports amounting to €730 million ($850 million) in the first quarter of 2025 – about half of what they were in the same quarter in 2021, according to Eurostat.

European imports of Russian fertilizer have remained relatively stable since 2021, with €550 million ($640 million) worth of fertilizers imported in the first quarter of 2025. The EU has also diversified its nickel imports, relying more on sources such as the US, Norway, the UK, and Canada. Despite this, the bloc still imported €260 million ($300 million) worth of nickel from Russia in the first quarter of 2025.

Many Western companies continue to operate in Russia despite sanctions and import duties, contributing a relatively small amount of tax revenue to the Kremlin but allowing aspects of normal life to persist for the Russian population. The exit of these corporations could bring the war closer to the Russian people and challenge Putin’s portrayal of a well-functioning economy, according to analysts.

In contrast, India imported $67 billion worth of goods from Russia in 2024, with roughly $53 billion being petroleum oils and crude oil. India’s imports of Russian oil and gas have significantly increased since the war began, making Russia the largest supplier of crude oil to India, accounting for 36% of the Indian market.

China has also increased its purchases of Russian crude oil following Moscow’s full-scale invasion of Ukraine in 2022, with Russia now accounting for 13.5% of China’s crude imports. In 2024, China imported approximately $130 billion worth of goods from Russia, including $62.6 billion of petroleum oils and crude oil, according to UN-aggregated data.