Image Credit: X account @DrSJaishankar
India, Russia Strengthen Trade and Energy Ties
India’s External Affairs Minister S. Jaishankar met Russian Foreign Minister Sergei Lavrov in Moscow to review bilateral cooperation. Both sides agreed to boost economic and energy ties, underlining the importance of their relationship at a time of shifting global dynamics.
Energy Cooperation Expands
Energy formed a central part of the discussion. Lavrov noted the success of Russian oil exports to India, which have grown significantly in recent years. He proposed joint projects in Russia’s Far East and Arctic to expand cooperation beyond trade into energy production. Russia also reaffirmed its commitment to continuing oil supplies to India despite international sanctions pressure.
Trade Imbalance Concerns
Jaishankar welcomed the growing partnership but raised concerns about India’s trade deficit with Russia, largely due to heavy crude imports. He called for greater access for Indian goods such as pharmaceuticals, agricultural products, and textiles. He stressed that reducing regulatory and non-tariff barriers would be essential to balance trade more effectively.
Wider Economic Agenda
The meeting also covered cooperation through institutional mechanisms, including the Inter-Governmental Commission on Trade. Both sides explored boosting LNG exports, enhancing investment opportunities, and promoting the rupee-rouble payment mechanism to reduce reliance on third-party currencies like the U.S. dollar.
Strategic Importance
Indian and Russian officials highlighted that bilateral trade crossed nearly $69 billion in 2024–25, a record figure. Russia criticized recent U.S. tariffs on Indian goods, with its envoy in New Delhi saying such actions were “unfair to friends.” Both governments reaffirmed that their partnership is based on mutual trust built over decades, dating back to World War II and Cold War cooperation.
Looking Ahead
India and Russia are now working on new projects that could strengthen long-term energy security and industrial collaboration. Despite external pressure, both sides appear committed to expanding cooperation in a way that balances trade and deepens strategic ties.
