US and Europe's continued trade with Russia raises sanction efficacy questions

On Saturday, US President Donald Trump announced that the United States was ready to impose new energy sanctions on Russia. 

However, this action was contingent upon all NATO member nations stopping their purchases of Russian oil and implementing comparable sanctions.

Despite over three years passing since Russia's full-scale invasion of Ukraine, the US and the European Union continue to import billions of euros worth of Russian energy and commodities, according to a Reuters analysis. 

This ongoing trade encompasses a wide range of crucial resources, including liquefied natural gas (LNG) and enriched uranium, highlighting the complex and entrenched nature of global supply chains and the difficulties in fully decoupling from Russian exports. 

The continued reliance on these Russian goods underscores the economic challenges and strategic dilemmas faced by Western nations as they balance sanctions against the immediate needs of their own economies and energy security.

EU and Russia

According to recent Eurostat data, EU import and export restrictions on various products led to a substantial decrease in trade with Russia. 

Between the first quarter of 2022 and the second quarter of 2025, exports to Russia fell by 61%, and imports from Russia declined by 89%.

The EU's trade balance with Russia shifted in the second quarter of 2025, moving from a deficit to a surplus of 0.8 billion euros, driven by an increase in exports and a decrease in imports.

Despite sanctions, the EU maintains imports of oil, nickel, natural gas, fertiliser, and iron and steel from Russia.

Oil

Before 2022, Russia held the position of the largest supplier of petroleum products to the EU. 

In 2021, Russia accounted for 28.74% of the EU's total petroleum product imports.

However, a significant shift occurred following the EU's ban on maritime imports of Russian crude oil.

This ban, implemented as part of sanctions against Russia, drastically altered the landscape of the petroleum trade. 

As a direct consequence, Russia's share of petroleum product imports into the EU plummeted to a mere 2.01% by 2025. 

This dramatic reduction highlights the effectiveness of the EU's import restrictions in significantly diminishing Russia's role in the European energy market.

Natural gas

Between the first quarter of 2021 and the second quarter of 2025, Russia's contribution to the EU's natural gas imports significantly decreased, falling from 48% to just 12%.

During this same period, Norway saw the most substantial increase in its share of EU natural gas imports, growing by 10%.

However, Algeria emerged as the EU's primary natural gas supplier, now accounting for 27% of the bloc's imports, an increase of 2%.

Despite this shift, Russia continues to supply natural gas to certain EU member states, including Hungary and Bulgaria, through the TurkStream undersea gas pipeline originating from Turkey.

LNG

Between the first quarter of 2021 and the second quarter of 2022, the value of EU imports of Russian liquefied natural gas rose significantly due to a sharp increase in prices.

Russia's share of LNG imports to the EU declined from 22% in the first quarter of 2021 to 14% in the second quarter of 2025.

In the second quarter of this year, the US accounted for 54% of frozen gas supplied to Europe, making it the largest supplier.

Fertilisers

As of the second quarter of 2025, Russia was the EU's largest fertiliser exporter, increasing its market share in the 27-nation bloc to 34% from 28% over the past four years.

While the European Parliament voted in May to impose prohibitive tariffs on Russian fertiliser imports, these will be introduced in phases, making it premature to assess their market impact.

US overall imports from Russia

US imports of Russian goods totalled $2.50 billion in the first half of 2025, a significant drop from $14.14 billion four years prior. 

Since January 2022, the US has imported $24.51 billion in goods from Russia. 

These figures are based on data from the US Census Bureau and the US Bureau of Economic Analysis, as well as publicly available import records.

Other imports

US imports of Russian fertilisers saw a slight increase last year, reaching approximately $1.27 billion, up from $1.14 billion in 2021.

In 2024, US imports of enriched uranium and plutonium from Russia totalled approximately $624 million, a decrease from $646 million in 2021.

Meanwhile, in 2024, Russia's palladium exports to the United States totalled approximately $878 million, marking a decrease from $1.59 billion in 2021.