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Informist, Friday, Dec. 5, 2025

 

--Russia Putin: To build large India-Russia pharma plant in Russia 

--Russia Putin: Working with India to develop new intl transport routes 
--Russia Putin: Ready to continue uninterrupted fuel shipment to India 
--Russia Putin: India-Russia settling 96% trade with regional currency 
--Russia Putin: Aiming for $100 bln trade with India by 2030  
--PM Modi: India, Russia trying to close FTA with Eurasian econ union soon 
--CONTEXT: PM Modi speaking at joint press meet with Russian President Putin 
--PM Modi: Agreed to econ cooperation programme to boost India, Russia ties  

 

NEW DELHI – Russia is ready to continue "uninterrupted" shipments of fuel for the fast-growing Indian economy, Russian President Vladimir Putin said Friday. "Russia is reliable supplier of oil, gas, coal, and everything that is required for the development of India's energy," Putin said at the joint press meet with Prime Minister Narendra Modi following the 23rd India-Russia Summit. 

 

New Delhi and Moscow share long-standing economic relations spanning over several decades, but India's imports from Russia outweigh its exports. While India has traditionally relied on Moscow for military equipment, New Delhi has become one of the biggest buyers of the country's crude oil since Russia invaded Ukraine in February 2022.

 

"Energy security has been a strong and important pillar of the India-Russia partnership. Our decades-old cooperation in the field of civil nuclear energy has been crucial in realising our shared priorities of clean energy. We will continue this win-win cooperation," Prime Minister Modi said.

 

According to him, the two sides reached a consensus on having an 'economic cooperation programme' till 2030 to boost trade and investment in a diversified, balanced, and sustainable way. "It will also open new opportunities in areas of partnership," he said. In 2024-25 (Apr-Mar), India exported goods worth $4.88 billion to Russia, and imported goods worth $63.81 billion. The two nations plan to foster more balanced and rewarding trade by aiming to exceed $100 billion in trade by 2030, Putin said.

India and Russia's oil trade is barely a bilateral issue now. US President Donald Trump has penalised India with 25% punitive tariff for its economic relationship with Russia. Russian crude shipments to India have also faced several roadblocks owing to the West's sanctions on Russia's major crude oil producers as well as cargoes.

 

The Group of Seven developed nations had initially imposed a $60-per-barrel price cap on Russian crude and later put additional sanctions to further restrict Russia's petroleum sales. India bought Russian crude oil up to $30-a-barrel cheaper, though discounts have varied sharply over the past three years and have been at $2-$3 a barrel in recent times. The International Monetary Fund in February said India saved around $7 billion per year by importing crude oil from Russia at discounted prices.

 

Not just trade sanctions, western countries had also sidelined Russia by imposing financial sanctions including banning them from Society for Worldwide Interbank Financial Telecommunication – an international payment system which is the global financial artery that allows smooth and rapid transfer of money across borders. This ban, which took effect in March 2022, aimed to restrict Russia's access to global financial transactions.

 

Since then, India and Russia have settled trade in both rupee and dollar terms through rupee vostro accounts and Russia's System for Transfer of Financial Messages, an alternative to the SWIFT international payment system. Both the nations have been discussing for a while about further bolstering local bilateral trade settlement mechanism. 

 

Putin Friday said that India and Russia have gradually increased settlement of bilateral trade in regional currencies – rupee and ruble – and are now settling 96% trade in these currencies. "Rupee coming in Russia because of import consignment is being invested here and ruble going to India is being invested there," he said. 

 

For seamless connectivity, the two countries will also work to develope new, international route between Moscow and New Delhi for better transport and logistics, like a route linked Russia or Belarus with the Indian Ocean, Putin said. Enhancing connectivity between our two countries is a key priority, Modi added. 

 

"We will move forward with renewed energy on the International North–South Transport Corridor, Northern Sea Route, and Chennai-Vladivostok Corridors. I am delighted that we will now collaborate to train Indian seafarers in polar waters. This will not only strengthen our cooperation in the Arctic but will also create new employment opportunities for India's youth," Modi said. 

 

The two countries signed multiple Memoranda of Understanding to strengthen cooperation in various sectors. Putin also announced that a large India-Russia-partnered pharmaceutical plant will be developed in Russia to produce high-quality medicinal drugs using advanced Indian technology and in return, Russian investors will invest in India's 'Make in India' programme.

 

India and Russia will also work in the direction of concluding negotiations for a free trade agreement with the Eurasian Economic Union. Russia is India's largest trading partner in the Eurasian Economic Union, which also includes Armenia, Belarus, Kazakhstan, and Kyrgyzstan.

 

The proposed FTA is expected to expand market access for Indian exporters, support diversification into new sectors and geographies, enhance competitiveness against non-market economies, and deliver significant benefits to micro, small and medium enterprises. India had a total trade of $69 billion with the region in 2024, according to a release by the commerce ministry.

 

The two sides had initially agreed to explore a trade deal in 2021, but the discussions stalled as Russia's priorities shifted after the Ukraine war. The deal was back on the table after Prime Minister Modi's visit to Moscow in 2024. 

 

As part of the India-Russia bilateral package decided at the top-level meeting, India will soon introduce a free 30-day e-tourist visa and a 30-day Group Tourist Visa for Russian citizens, Modi said Friday.  End

 

US$1 = INR 89.98

 

Reported by Priyasmita Dutta and Sagar Sen

Edited by Vandana Hingorani

 

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