Russia Diversifies Dairy Imports Amid Strategic Realignment

In a notable development reflecting shifting global trade dynamics, Russia has significantly ramped up its butter imports from South America, the Middle East—and now India. According to data from Russia’s Veterinary Information System (VetIS), butter imports from Argentina surged by an extraordinary 5.6 times year-on-year, reaching 2,000 tonnes as of March 21, 2025.

Uruguay also witnessed a twofold increase in butter exports to Russia, delivering 1,000 tonnes. In a parallel trend, Iran resumed butter shipments to the Russian market after a long hiatus, matching Argentina’s volume with 2,000 tonnes delivered within just two months.

These shifts are part of a broader strategy by Russia to diversify its dairy import sources amid evolving geopolitical and trade conditions.

“This diversification reflects Russia’s intent to reduce over-dependence on any single trading partner, while leveraging emerging dairy exporters like Argentina and Iran. It also indicates growing dairy production capabilities in these regions,” said Dr. Ekaterina Smirnova, a Moscow-based dairy trade analyst.

🇮🇳 India Enters the Scene: Sonai Dairy Approved for Russian Exports

In a significant development for Indian dairy, Sonai Dairy has officially received approval to export butter to Russia, marking India’s entry into this rapidly shifting market. This approval, granted under Russia’s strict veterinary and sanitary controls, positions India as a potential future player in the premium butter trade.

“This is a proud moment for Indian dairy exports. With Sonai Dairy paving the way, more Indian processors could soon find a place in Russia’s import basket,” said Nilesh Deshmukh, Head of International Business at Sonai Dairy.

India, the world’s largest milk producer, has historically focused on domestic consumption, but with rising surplus and global demand shifts, Indian dairies are exploring new export avenues. The entry into the Russian market could catalyze more bilateral trade in dairy between the two countries.

Belarus Maintains Lead, But Share Diluting Gradually

Despite the emerging competition, Belarus remains Russia’s principal dairy supplier by a wide margin. Notable figures include:

• Cottage Cheese Imports: 100% — 16,600 tonnes — sourced from Belarus.
• Ice Cream Imports: A total of 3,500 tonnes, split between Belarus (2,100 tonnes) and Kazakhstan (1,400 tonnes).

Belarusian dairy continues to benefit from favorable trade terms under the Eurasian Economic Union (EAEU), allowing tariff-free access and harmonized quality standards. However, with Russia’s shifting procurement strategy, Belarus’s dominance may see gradual recalibration.

Broader Trends in Russian Dairy Trade

Russia’s import realignment comes at a time when global dairy trade patterns are also in flux. Major global exporters like New Zealand and the EU are witnessing increased competition from developing dairy nations. Additionally, with sanctions and counter-sanctions still affecting trade with the West, Russia is proactively building new trade corridors across Asia, Latin America, and the Middle East.

“Dairy self-sufficiency remains a long-term goal for Russia, but in the near term, strategic imports from non-Western partners are critical to maintain supply chain stability,” noted Natalia Petrova, Director of the Russian Dairy Producers Association.