The Russian President Vladimir Putin sparked global tensions on Monday, when he signed a decree recognizing the sovereignty of breakaway regions of eastern Ukraine. Donetsk and Luhansk have been under control of Russia backed separatists since 2014.

Their independence is not recognized by Ukraine or the international community. Efforts to resolve the conflict, as per the 2015 MINSK agreements have not yielded results. So after weeks of tensions and amassing troops when Russian President declared these breakaway regions to be independent, it alarmed western countries that Russia was establishing grounds for an invasion.

Bilateral trade between India and Ukraine has been rising steadily. India is Ukraine's fifth largest trade partner and the largest export market in Asia Pacific.

India's major export to Ukraine is pharmaceutical items. India also exports boilers, mechanical appliances, oil seeds, fruits, tea, coffee and spices among other items.

Ukraine exports sunflower oil to India. It also exports inorganic chemicals, plastics and chemicals among other items.

So what does Ukraine's recent conflict with Russia mean for trade between India and Ukraine? To discuss this CNBC-TV18 spoke to Ajay Sahai Director General & CEO of FIEO and Sudarshan Jain, Secretary General of Indian Pharmaceutical Alliance.

Watch video for more.