Jobaaj Stories
The western nations have begun to isolate Russia after its despicable actions against European peace.
After Russia recognized separatist regions in Ukraine and has positioned significant military strength around Ukrainian borders, Countries like US and UK have announced their first sanctions against Russian banks and billionaires.
The countries have also announced restrictions on Russia's sovereign debt meaning the country cannot raise funds or trade new debts in the global markets.
Furthermore, Germany has frozen a new gas pipeline.
Following these sanctions, a global trade restriction with Russia might be underway.
How will trade sanctions on Russia affect India?
Today, Russia has declared official war on Ukraine. A call for surrender by Russian President Vladimir Putin has been announced to the Ukrainian soldiers.
The call for military action has been widely and actively admonished by western countries even threatening military responses of their own.
Considering all this, trade sanctions on Russia might be imminent to discourage it from moving on with its war actions.
However, even if the trade sanctions are set off, India might not be as affected as one might think.
The global trade relations between India and Russia are almost insignificant and comprise less than 2% of India's global trade.
Tapping into more accurate results, around 1.3 percent of Indian exports go on to Russia and around 1.6 percent of India's imported goods come from Russia. (figures taken from moneycontrol)
A large part of India's imports from Russia is in the form of fossil fuels. While India's major exports to Russia are in the form of electronic goods and pharmaceutical products.
Either way, like all countries in the world, India will eventually have to bear the impact of Russia's military activities and the market disruption caused by it.
However, the impact would be way less compared to some of India's neighboring countries like China which is one of the most important global trade partners for Russia.
