Russia & Ukraine War and its effect on the Indian economy
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Ukraine:-Ukraine country located in Eastern Europe, the second largest on the continent after Russia. The Capital of Ukraine is (Kyiv). Kyiv is located on the Dnieper River in north-central Ukraine.

After the world war, Ukraine became part of the Soviet Union as the Ukrainian  Soviet  Socialist  Republic(S.S.R).

 When the Soviet Union began to unravel in 1990-91, the legislature of the Ukrainian  S.S.R.Declared sovereignty (July 6, 1990). After that outright, the Independence was on August 24, 1991, and was confirmed on December 1, 1991.

Ukraine is boarded by Belarus to the North, Russia to the east, the sea of Azov and the Black Sea to the south, Hungary, Slovakia, and Poland to the west. The population of Ukraine in 2020 was 4.41 Crore.

 As a result of the election, Volodymyr Zelenskyy a former actor and comedian with no prior political experience has become the sixth President of Ukraine.

Ukraine total export to other countries 1.Iron & steel 11.7% of the production 2.Electrical Machinery 5.2%,Oil seed3.7%,Animal vegetable fats11.7% & Cereals 19.1%.

Ukraine is the largest exporter of sunflower oil in the world. Ukraine is responsible for up to 46% of the sunflower seed and sunflower oil production.

Russia exports about 23% of the World’s supply. Russia is the 2nd largest producer of sunflower oil.

Russia & Ukraine War and its effect on the Indian economy
Russia President putin-&-Ukraine President zelenski

Russia:-Russia is the largest country in the World. Russia occupies nearly 1/10th area of land on Earth.

 It spans 11 time zones across two continents( Europe & Asia). It has three oceans ( the Atlantic, Pacific, & Arctic). Its capital is Moscow.

As per 2021 report the population is 14, 31, 85,000.Russia became an independent country after the dissolution of the Soviet Union in December 1991.

World’s leading natural gas exporteris Russia. Russia is  second-largest natural gas producer and the second largest oil exporter. Russia’s foreign exchange reserve is the world’s fifth-largest.

Russia exports about 23% of the World’s supply. Russia is the 2nd largest producer of sunflower oil.


Vladimir Putin is the President of Russia. who served as president from 1999 to 2008, 2012 to till date).

Russia’s main exports are fuels and energy products (63 per cent of total  shipments of which  crude oil and natural gas accounted  for 26 per cent and 12 per cent respectively.)

Metals 10%, machinery equipments 7.4%,, chemical products 7.4 percent  and foodstuffs and agricultural products 5 %.

The Union of Soviet Social Republic (USSR) dissolution of the Soviet Union on 26th  December 1991.

Thousands of political prisoners and dissidents were released. Gorbachev removed the constitutional role of the communist party. This leads to the USSR and the formation new name RUSSIA.

Russia & Ukraine War and its effect on the Indian economy
Ukraine & Russia War airline flying near Ukrain

What is the reason for the War of Ukraine & Russia conflict?-

1. Ukraine is an independent nation after the fall of the Soviet Union in the year of 1991. It was an earlier part of the Russian empire.

2. Ukraine after making its empire, make close contact with the West.

3. Since its Independence, Ukraine battling with corruption and internal division. The country’s western side wants to integrate with the west. But the eastern side with Russia.

4. The conflict started when Ukrainian President Victor Yanukovych rejected an association agreement with the European Union in favour of closer ties with Moscow.

5. Protest started against this agreement and the revolution of Dignity started. Russia annexed Ukraine’s Crimean peninsula and backed east Ukraine’s separatist rebellion.

6. Soon after, Russia attacked Donbas, which is an industrial hub. In this attack, about 14000 people died.

7. Russia strongly criticised the US & NATO for aiding Ukraine with weapons and joint military drills.

8. President Putin, expressed concerns over the plan by some NATO members to establish military training centres in Ukraine. 

9. Russia in its security demand, does not want Ukraine to be a member state of NATO.

10. Russia always demanded the withdrawal of NATO troops from central and Eastern Europe

11..It is noted that Ukraine’s admission to NATO, require the approval of 30 member state of NATO.

12. Ukraine has always wanted to be a member state of NATO. It openly said that it will be applying for EU membership in 2024.

Russia & Ukraine War and its effect on the Indian economy
A building burns after shelling in Kyiv, Ukraine, Thursday, March 3, 2022. Russian forces have escalated their attacks on crowded cities in what Ukraine's leader called a blatant campaign of terror. (AP Photo/Efrem Lukatsky)

What Ukraine Biggest export to the economy:-

Ukraine mainly exports steel, coal, fuel, Petroleum products, chemicals machinery and transport equipment and grains, like barley, corn, wheat. More than 60% of the exports go to Soviet Republican countries of Russia, Kazakhstan, Belarus, Turkey and China.

What Russia Biggest exports to the economy:-

Russia is the leading natural gas exporter, the second-largest gas producer in the world. Top exports of Russia are, Crude petroleum, Refined Petroleum, Petroleum Gas, Coal Briquettes, and wheat, exporting mostly to China, the Netherlands, Belarus, Germany, and Italy.

What India Imports from Russia:-India imports from Russia are, Machinery, nuclear reactor, boilers, printed books, newspapers, Iron & steel.

What India imports from Ukraine.-India currently imports sunflower oil for cooking from Ukraine, which is a large producer of sunflower oil.

India is the second-largest market for the Russian defense industry. In 201768% of Indian military hardware, imports came from Russia.

Russia & Ukraine War and its effect on the Indian economy
Ukraine-WAR with Missile

Impact of Indian economy due to conflict of Ukraine and Russia:-

The Union Finance Minister Smt. Nirmala Sitaraman said on 8th March that, the ongoing Russia –Ukraine war certainly has an impact on the Indian Economy.

Prices of crude oil are rising due to the Ukraine crisis. India nearly imports 85 per cent crude oil. When oil prices will go up then everything will rise.

The prices of crude oil have sky-rocketed above US$130/-barrel from US$97barrel before the Russian invasion began. Due to this the chemical industries and paint industries suffer a lot.

Russia contributes almost 6% of global primary aluminum production. All production units are shut up, due to this the negatively affected in the construction, real estate, and Automobile sectors in India.

Nearly 8% of Urea India import from Russia & Ukraine. That will impact Indian farmers due to the non-availability of Urea.

Nearly 10% of India’s edible oil consumption is sunflower based. Out of which 90% is imported from  Russia and Ukraine. Due to this conflict this also badly impact on prices of edible oils.

Russia & Ukraine War and its effect on the Indian economy

The Automobile sector was also affected due shortage of the semiconductor shortage in the market.

Russia & Ukraine produces almost 75% of the neon gas which is used for several processes in the manufacturing of semiconductor like etching, circuit design into silicon wafers to create chips.

The pharmaceuticals sector may see only a marginal impact as the exports. Russia and Ukraine are currently exempt from sanctions and the exposure of Indian drug makers to these are nearly 3% of their total exports.

Exports of tea –incidentally both in Russia and Ukrainian may also face a challenge. Russia is one of the biggest importers of Indian Tea with a share of 18% of Indian tea exports. The Russian market is crucial for Indian exports.

India’s agricultural sector is expected to face the heat from hostilities between Russia and Ukraine, which is expected to push up prices and availability of  Potash –a key component used in the manufacturing of fertilizers.

At present Belarus and Russia are the key suppliers of potash in the global market. On other hand, India is the major importer of  Potash which is used for the manufacturing of fertilizers. Russia, Ukraine and Belarus contribute 10%-12%  of India’s total fertilizers imports.

Smt Sitaramn said that Russia and Ukraine export 30 per cent of wheat which has been stopped after the war began.

Indian farmers are producing wheat in large quantities. We have taken up a challenge with a global dimension.

we will achieve  Atma Niobrara and fulfil the demands of the world, of providing wheat to other countries.

As per the report of The Economic Times, IMF warned that it is a “serious” global economic impact of the war in Ukraine & Russia conflict.

Even the forecasters said that “extraordinary “uncertainty economic consequences” of the invasion launched last week by Russia on its eastern European neighbor.

The war in Ukraine is resulting in the tragic loss of life and human suffering, as well as causing massive damage to Ukraine‘s physical fracture.

It has sent a wave of more than1 a million refugees to neighboring countries.

As per the president of the World Bank Mr. David Malpass, the says-The war in Ukraine is “a catastrophe” for the world which will cut global economic growth. Food prices have also been pushed by this war and affect the people of poor countries.


Russia & Ukraine War and its effect on the Indian economy
Russia & Ukraine WAR

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I am Ajay Kumar Patra. ( & MBA-Finance) with 27years of Accounts & Taxation Experience in Large Manufacturing Units in India. In 2021 I started my own tax consultancy firm called “Ajay Tax consultant”. I started my Digital marketing on my website "".I have already published more than 100 Blogs on Business, Finance, startups, Digital marketing & Tours & Travel for my viewers.

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