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Finance Minister Nirmala Sitharaman has said that in an interconnected world, sanctions can have unintended consequences, and India is trying to work through them. Economic sanctions imposed on Russia by the US and European Union following the invasion of Ukraine in February this year have led to a fall in bilateral trade with Moscow. The ongoing war also fuelled energy prices and a shortage of foodgrains.

She said India’s stand on the Russia-Ukraine war is with the view to safeguard its economic and security interest. She added ‘so, India’s position is not just for its economic interests, but also its security interests. The balance that India has taken in every decision in this context… because of the geopolitical location of India’.

She further said sanction always has an impact on not just the country on which it is imposed but on many other nations, and added that ‘it can have collateral impact on many others who probably didn’t intend to have the sanction’. So, she said unintended consequences do bear an immediate and strong impact on countries in this digitally connected world.