Indian Prime Minister Narendra Modi and Russian President Vladimir Putin have reaffirmed their commitment to expanding bilateral economic cooperation, even as external pressures mount from the United States over India’s continued import of discounted Russian oil. During Putin’s first visit to India since Moscow launched its full-scale military operation in Ukraine, the two leaders emphasized the durability of their strategic relationship, rooted in Cold War-era ties but now evolving into broader domains including trade, labor mobility, and energy security.
Discussions covered multiple areas of mutual interest, such as increased commercial exchanges, collaboration on Arctic shipping routes, and progress on civilian nuclear energy initiatives. A new agreement was signed to facilitate the movement of Indian professionals to Russia, addressing labor shortages in certain sectors of the Russian economy. Additionally, a deal was reached to boost exports of Indian seafood and agricultural products to Russia—sectors impacted by recent U.S. tariffs introduced in August.
The visit occurred shortly after intensive diplomatic efforts led by Washington aimed at brokering a ceasefire in Ukraine. However, Moscow continues to demand control over contested regions in eastern Ukraine—territories it has not fully secured—positions that Kyiv has consistently rejected. India has maintained a neutral stance on the conflict, advocating for dialogue and peaceful resolution without directly condemning Russia’s actions. Modi reiterated this position, stating that sustained peace remains essential for global stability and development.
Energy trade remains a focal point of the bilateral relationship. Once a minor supplier, Russia now provides the majority of India’s crude oil imports, taking advantage of steep discounts following Western sanctions. This shift has drawn scrutiny from the U.S., which imposed 50% tariffs on select Indian goods to discourage energy purchases from Russia and sanctioned two major Russian oil firms, prompting Indian refiners to adjust sourcing strategies.
Putin emphasized Russia’s reliability as an energy partner, noting its readiness to support India’s rapidly growing economy with uninterrupted supplies of oil, gas, and coal. India, ranked as the world’s third-largest oil consumer, has capitalized on favorable pricing to diversify its energy portfolio.
Beyond energy, both nations are exploring deeper industrial and technological collaboration. Bloomberg News reported ongoing negotiations for India to lease a $2 billion Russian submarine, signaling continued defense engagement. Yet experts caution that the economic dimension of the relationship still lags behind political and military ties.
Harsh Pant, professor of international relations at King’s College London, noted that while current agreements remain largely aspirational, successful implementation could transform the nature of India-Russia ties. He highlighted the need to reduce overreliance on defense and energy and build more balanced economic linkages.
Modi’s government faces the challenge of maintaining strong historical ties with Moscow while advancing a strategic partnership with Washington, India’s largest export destination. Despite U.S. criticism, trade discussions between India and American officials continue, with a U.S. negotiating team expected in New Delhi next week.
Currently, India accounts for less than 2% of Russia’s total imports. Both countries aim to raise bilateral trade to $100 billion by 2030. At a joint business forum in New Delhi, participants discussed expanding Indian food exports—particularly shrimp and other marine products—to meet potential demand in Russia. However, Russian agricultural officials stressed that market demand, not political agreements, will determine the volume of future imports.
Sergei Dankvert, head of Rosselkhoznadzor, Russia’s federal veterinary and phytosanitary surveillance service, stated that supply levels would be driven entirely by consumer needs and competitive conditions within the domestic market.
— news from The Spokesman-Review
— News Original —
Modi, Putin push to deepen economic ties despite US pressure
Indian Prime Minister Narendra Modi and Russian President Vladimir Putin pledged to widen economic ties in the face of pressure from U.S. President Donald Trump to slam the brakes on an oil trade that surged after the Kremlin’s war on Ukraine. n nIn his first trip to India since Russia’s full-scale invasion of Ukraine, Putin sought to showcase the longstanding partnership between the two nations that dates back to the Cold War. Those ties have centered on defense, but both leaders are now seeking to broaden cooperation to include deeper trade, migration and economic links. n nThe two leaders discussed issues including expanding trade, cooperating on Arctic navigation and continuing work on civilian nuclear power. They also signed an agreement to make it easier for Indians to work in Russia. n nPutin’s visit comes days after intense U.S.-led shuttle diplomacy to reach a peace deal after almost four years of conflict in Ukraine. The Kremlin has pressed demands for territory in eastern Ukraine that Russian forces have been unable to occupy since the illegal invasion. Kyiv has repeatedly rejected the demand. n nIndia has adopted a cautious position on the war – calling for a halt to the fighting but reluctant to criticize Russia’s invasion and abstaining from United Nations votes condemning it. Modi said during a meeting with Putin on Friday that he has held regular talks with Russia about Ukraine and has pushed for a peaceful resolution. n n“I have said this earlier as well, peace is the only way to progress. We must all look for a road to peace,” Modi said. n nOil also featured in the discussions, an area that’s come under heavy scrutiny after Trump slapped 50% tariffs on Indian goods to pressure it to halt purchases of Russian energy. He followed that up by sanctioning two of Russia’s largest oil producers, forcing Indian refiners to curb purchases and seek alternate sources. n n“Russia is a reliable supplier of oil, gas, coal and everything that is required for the development of India’s energy,” Putin said after his meeting with Modi. “We are ready to continue uninterrupted shipments of fuel for the fast-growing Indian economy.” n nIndia, the world’s third-largest consumer of oil, used to source a negligible amount of crude from Russia. But as Western sanctions forced Russian oil exporters to offer deep discounts to replace the loss of European customers, Russia became India’s top supplier. n nMobility agreement n nSpeaking at an India-Russia business forum later Friday, Putin said the Russian delegation didn’t come to New Delhi only to discuss energy issues and sign contracts for supplies of oil and gas. n nIt was also there to showcase “what multi-faceted opportunities our cooperation can offer,” he said. “What we want is development of our multi-faceted relations with India in various fields.” n nDuring the two-day visit, India and Russia finalized a mobility agreement that allows Indian professionals to relocate to Russia, a first for the two countries. They also signed an agreement for shipments of Indian marine products and agricultural goods to Russia, exports hit by Trump’s tariffs that took effect in August. n n“The Russian economy needs qualified workers and they are in great demand in India itself,” said Alexey Kupriyanov, head of the Center of the Indo-Pacific Region at the state-run IMEMO institute in Moscow. n nOfficials are also working to finalize a deal for India to lease a $2 billion submarine from Russia, Bloomberg News reported. n nThe challenge for both sides is that the relationship has become too dependent on defense and energy and “the economic leg of the relationship has been very, very weak,” said Harsh Pant, professor of international relations at King’s College London. n n“As of now, it is mostly on paper but if this vision can be translated to something concrete then it has the potential to shift the dynamic in the India-Russia relationship,” he said of the announced agreements. n nModi is trying to balance longstanding ties with Russia alongside its strategic partnership with the U.S., its biggest export market. Despite Trump’s criticism of India’s ties with Russia, Modi’s government remains in trade talks with the U.S., with a negotiating team from Washington expected in India next week. n nIndia’s share of Russian imports is now less than 2%. New Delhi and Moscow intend to increase trade to $100 billion by the end of the decade. n nAt the business forum in New Delhi, discussions focused on boosting India’s food exports to Russia, in particular shrimp and other seafood, an industry significantly affected by U.S. tariffs. However, it wasn’t clear whether the Russian market was ready for the increased trade. n n“It depends on the demand,” Sergei Dankvert, head of Rosselkhoznadzor, Russia’s agriculture agency, said in an interview in New Delhi. “If there is demand, then there will be further supplies. If there is no demand, there will be no supplies.” Everything depends on “competition in the market,” he said.