Russian goods continue to flow into U.S. markets as war with Ukraine hits 6 months

Experts say the global economy is so intertwined that sanctions must be limited in scope to avoid driving up prices in an already unstable market.

On a hot, humid East Coast day this summer, a massive container ship pulled into the Port of Baltimore loaded with sheets of plywood, aluminum rods and radioactive material – all sourced from the fields, forests and factories of Russia.

President Joe Biden promised to “inflict pain” and deal “a crushing blow” on Vladimir Putin through trade restrictions on commodities like vodka, diamonds and gasoline in the wake of Russia’s invasion of Ukraine six months ago. But hundreds of other types of unsanctioned goods worth billions of dollars, including those found on the ship bound for Baltimore from St. Petersburg, Russia, continue to flow into U.S. ports.

The Associated Press found more than 3,600 shipments of wood, metals, rubber and other goods have arrived at U.S. ports from Russia since it began launching missiles and airstrikes into its neighbor in February. That’s a significant drop from the same period in 2021 when about 6,000 shipments arrived, but it still adds up to more than $1 billion worth of commerce a month.

In reality, no one involved actually expected trade to drag to a halt after the invasion. Banning imports of certain items would likely do more harm to those sectors in the U.S. than in Russia.

“When we impose sanctions, it could disrupt global trade. So our job is to think about which sanctions deliver the most impact while also allowing global trade to work,” Ambassador Jim O’Brien, who heads the State Department’s Office of Sanctions Coordination, told the AP.

Experts say the global economy is so intertwined that sanctions must be limited in scope to avoid driving up prices in an already unstable market.

Also, U.S. sanctions don’t exist in a vacuum; layers of European Union and U.K. bans result in convoluted trade rules that can be confusing to buyers, sellers and policymakers.

For example, the Biden administration and the EU released separate lists of Russian companies that cannot receive exports, but at least one of those companies – which supplies the Russian military with metal to make fighter jets currently dropping bombs in Ukraine – is still selling millions of dollars of metal to American and European firms, AP found.