Why are exports to Russia costing businesses a fortune ?

export to Russia
India Export to Russia & other CIS Nations

India export to Russia and Ukraine goods including CIS nations worth USD 4-4.5 billion annually. In the first 10 months of FY 2022, Russia made up USD 2.85 billion out of the total, while Ukraine USD 427 million. As India aims to continue its export to Russia amid the war, logistical problems and last-mile delivery are proving to be hurdles for exporters. Sanctions on Russia have led to a spike in crude oil prices and have made shipping expensive. The shortage of shipping containers has also added to the cost. Insurance companies are reluctant to insure shipments to Russia as the country has been declared a war zone. Further, several ships carrying 3,000 containers from India to Russia are stranded in Europe and West Asia due to the transportation embargo on shipments into Russia and Ukraine. While exporters are looking at alternative land routes or new buyers for the goods in transit, those trying to get the shipments back are facing a big crisis.

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