Amid ‘penalty’ threat on India, a look at trade between US and Russia

 The United States has fired fresh shots at India over its relationship with Russia.

On Thursday, US Treasury Secretary Scott Bessent claimed India had ‘not been a great global actor’. Bessent said the entire trade team including US President Donald Trump were frustrated with India.

This comes in the backdrop of Trump announcing a 25 per cent tariff on Indian goods plus a ‘penalty’ for India buying crude oil from Russia. Some see this as a pressure tactic from the US president after trade talks which have seemingly stalled.

But what happened? What did Bessent and others say? And how much trade do the US and Europe do with Russia?

What happened?

The United States on Thursday, evidently frustrated with the status of the trade talks, took aim at India once again.

“Well, I don’t know what’s going to happen. It will be up to India. India came to the table early. They’ve been slow rolling things. So I think that the President, the whole trade team, has been frustrated with them”, Bessent said.

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He pointed out that India had been purchasing large quantities of crude oil from Russia, which has been under sanction from the West.

Russia over the years has been selling crude oil to India at a discount – which has resulted in New Delhi saving billions.

Bessent wasn’t alone.

Secretary of State Marco Rubio also slammed India, Saying that New Delhi buying oil from Moscow was funding its Ukraine war.

Rubio said this was a point of irritation for the United States.

“Look, global trade – India is an ally. It’s a strategic partner. Like anything in foreign policy, you’re not going to align 100 per cent of the time on everything”, Rubio told Fox Radio.

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Rubio said it was unfortunate that India’s oil purchases continue to fund Russia’s Ukraine operations.

Bessent and Rubio’s remarks came after Trump earlier took to social media to slam India and Russia, saying they “can take their dead economies down together”.

“I don’t care what India does with Russia. They can take their dead economies down together, for all I care. We have done very little business with India, their tariffs are too high, among the highest in the world. Likewise, Russia and the USA do almost no business together. Let’s keep it that way,” Trump wrote on his Truth Social platform.

Trump added that India has “always bought a vast majority of their military equipment from Russia”.

They “are Russia’s largest buyer of energy, along with China, at a time when everyone wants Russia to stop the killing in Ukraine”, he added.

Trump’s remarks have not gone down well in India.

Which makes sense considering that both the United States and Europe continue to trade with Russia.

How much trade does US do with Russia?

First let’s look at the United States’ trade relationship with Russia.

Though the trade relationship has been in steady decline ever since Moscow’s invasion of Kyiv in 2022, it hasn’t stopped completely.

In 2022, the US imported goods worth $15 billion from Russia.

As of May 2025, the US’ imports from Russia were at $2.1 billion.

This included imports of $196 million in January, $339 million in February, $523 million in March, $492 million in April, and $539 million in May.

The US imported fertilisers, precious metals, inorganic chemicals, wood products, and some machinery from Russia.

Meanwhile, the US’ exports to Russia were valued at around $230 million through May 2025.

In 2024, Washington imported goods worth around $3 billion from Moscow – a decrease of 34 per cent from 2023.

Still, its monthly imports from Russia hit a high of $438.5 million in May 2024.

The US’ exports to Russia in 2024 were $526.1 million, down 12.3 percent from around $600 million 2023.

The US mainly sent Russia transportation and telecommunication equipment.

The two countries’ trade deficit was at $2.5 billion in 2024, a decrease of 37.5 per cent from 2023 when the deficit was at $4 billion.

While many products are under sanctions, the US continues to import fertilisers, non-ferrous metals and inorganic chemicals from Russia.

Fertilisers, at $1.30 billion, made up the major chunk of imports from Russia in 2024.

The US also imported non-ferrous materials worth $876.5 million and inorganic chemicals worth $683 million in 2024.

The US also imported wood products ($89.44 million), and some machinery ($80 million) and precious metals and stones from Russia in 2024.

What about the EU and Russia?

At the start of 2022, Russia was a major trading partner of the EU.

However, trade between Russia and EU has also been on a decline ever since the Ukraine war.

Trade has fallen from $283.3 billion in 2022 to $74.3 billion in 2024.

The EU’s imports from Russia have shrunk from $105.6 billion in 2022 to $39.5 billion in 2024.

The EU’s exports to Russia decreased from $177.7 billion in 2022 to $34.7 billion in 2024.

The trade deficit, which was at $72.1 billion in 2022, has fallen to $4.8 billion in 2024.

The decline has mainly been in fossil fuels—especially crude oil, pipeline gas, and refined petroleum – after the US-led West imposed sanctions on Russian oil and gas in the aftermath of the Ukraine invasion.

The EU and Russia continue to trade in fertilisers, LNG and metals and raw materials.

It is also important to note that despite the decline, many European nations remain hooked on Russian gas and LNG.

Slovakia and Hungary, who are openly pro-Moscow, still import Russian crude oil via the Druzhba pipeline.

Hungary, Slovakia, and Austria continue to import Russian pipeline gas via TurkStream and Balkans.

While the European Union has announced it will stop importing Russian gas by 2027, the bloc is by no means united.

Experts say that for many nations in the EU, getting completely off Russian gas will not be easy – or cheap. They express scepticism that it can be done within a few years.

India and China hit back

India initially responded to Trump’s tariffs by saying it has “taken note” and is “studying its implications”.

“India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective. The Government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs,” the Ministry of Commerce and Industry said in a statement.

“The Government will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK,” the government said.

However, after Trump’s social media post, India has hit back at the US, telling Washington that it is no longer interested in buying the F-35s.

India has consistently said it will put its national interest above all else and pointed to the West’s double standards when it comes to dealing with Russia.

China’s deputy permanent representative to the UN Geng Shuang slammed Washington on Thursday saying that the US itself continues to engage in trade with Russia to this day.

“Why should it be acceptable for the US to do so, but not for others? Isn’t this ‘only allowing oneself to set fires while forbidding others from lighting lamps?’” Geng said at a UN Security Council meeting.

With inputs from agencies