Western Energy Hypocrisy? U.S. & Europe Trade Essential Goods with Russia While Pressuring Others

As geopolitical tensions surrounding the Russia–Ukraine war enter their third year, a striking double standard has emerged in global trade dynamics. While the United States and European Union publicly urge nations like India to halt or reduce purchases of Russian crude oil, they themselves continue trading in key Russian commodities vital to their own economies.

This contradiction has ignited criticism, especially from countries in the Global South, who accuse the West of monopolizing clean trade lanes for essential imports while applying diplomatic pressure on others under the guise of ethical sanctions.

The West Still Trades with Russia—Quietly

Despite aggressive sanctions and price caps on Russian oil and gas, U.S. and EU trade data show a continued flow of essential goods from Russia into Western economies.

US–Russia Trade

• 2022
  U.S. goods and services trade with Russia totaled roughly USD 20.2 billion, comprising USD 1.7 billion in exports (mostly industrial equipment, medical supplies, intellectual property, financial services) and USD 14.4 billion in imports, dominated by energy products including refined petroleum and enriched uranium, resulting in a trade deficit of USD 12.8 billion.

• 2023
  Trade continued its decline amid expanding sanctions; imports fell sharply and exports to Russia dropped further, though specific totals are lower than prior years .

• 2024
  U.S. imports from Russia totaled approximately USD 3.0 billion, down 34.2% year-on-year, with exports at USD 526 million. Imports included enriched uranium (~USD 600 million), palladium (~USD 502 million), chemicals, and niche goods such as vacuum tubes. U.S. exports were mainly medical and technology goods. The trade deficit narrowed to about USD 2.5 billion .

• 2025 (Jan–May)
  U.S. imports from Russia stood at USD 2.1 billion, with enriched uranium and palladium as key commodities. Exports totaled only USD 232 million .

EU–Russia Trade

• 2021
  Russia was among the EU’s top trading partners. About 36% of EU imports, and nearly 38% of EU exports, involved Russia. Fossil fuels (oil and gas) were predominant.

• 2022
  Following Russia’s invasion of Ukraine, the EU significantly scaled back trade through sanctions. Plans launched to phase out Russian fossil fuels by 2027 .

• 2024
  Two-way trade dropped sharply: total trade reached €67.5 billion, down from €257.5 billion in 2021.

  • Imports from Russia: €35.9 billion (mainly mineral fuels €22.3B, then chemicals and steel).

  • EU Exports to Russia: €31.5 billion (led by chemicals €13.7B, food/raw materials, machinery & equipment).

  • Imports fell 78%, exports down 65%. The trade surplus narrowed to €4.5 billion 

• 2025 outlook
  While EU continues importing certain Russian LNG at record levels (17.8 Mt in 2024), further phase-out of coal and oil is targeted by 2027. Critics argue energy imports undermine sanctions

India Turns to Russia Amidst Global Realignment

India’s decision to buy discounted Russian crude was driven not by politics, but economics.

• By 2024, Russia became India’s #1 crude supplier, replacing Iraq and Saudi Arabia.

• India imported over 1.6 million barrels per day (bpd) of Russian oil by mid-2025.

• Savings from discounted Russian oil are estimated to be over $3.6 billion annually.

Facing U.S. sanctions on Iran and Venezuela, and as Saudi crude is diverted to Europe, India had little choice.

Banned Sources, But Only for Others?

❌ Iran and Venezuela

• Both countries have some of the largest oil reserves in the world.

• The U.S. enforces secondary sanctions preventing nations like India from buying their crude.

• Yet, European companies have quietly lobbied for exceptions for humanitarian or fertilizer-related imports from Iran.

❌ Russia

• The G7 oil price cap of $60/bbl was introduced to choke Russia’s revenues.

• But while the West wants India to comply, it makes exceptions for gas, metals, and nuclear fuel imports into its own economies.

India’s Stand: “Our People First”

India has repeatedly defended its energy trade with Russia:

🗣️ “We are buying oil to keep inflation in check, not to support any war,” External Affairs Minister S. Jaishankar said earlier this year.

India’s position rests on three pillars:

1. Legal Trade: Russian oil isn’t under U.N. sanctions.

2. Energy Security: Over 85% of India’s oil is imported.

3. Economic Rationality: Russian Urals crude is $10–25 cheaper than Brent.

The Numbers Tell the Story

Sanctions or Strategy?

While the U.S. and EU present sanctions on Russia as moral imperatives, their ongoing trade in strategic resources suggests a different picture—one of economic self-interest wrapped in diplomacy.

India, on the other hand, faces rising global energy prices, inflation pressures, and limited options due to Western-imposed restrictions on alternative suppliers like Iran and Venezuela.

Analysts argue that unless the West halts its own Russian trade, pressuring countries like India is neither fair nor sustainable. The current model, they say, reinforces a Western monopoly over moral trade while sidelining developing nations’ economic needs.

“It’s not sanctions—it’s selective ethics,” concludes Dr. Nitin Rajan, an energy policy expert.