Status: 04/17/2023 12:25 pm
Faced with Western sanctions stemming from the war in Ukraine, Russia is looking for new trading partners. India plays an important role in this. Now there are plans for a free trade agreement.
India and Russia want to strengthen their economic relations with a free trade pact. There is prior agreement on this, Indian Foreign Minister Subrahmanyam Jaishankar said at an event in New Delhi today. According to the Minister of Trade and Industry of Russia, Denis Manturov, a guarantee is foreseen for bilateral investments.
Faced with Western sanctions over the war in Ukraine, Russia wants to expand its trade relations with other countries, mainly in Asia. India has not explicitly criticized Russia’s war of aggression against Ukraine and has called for a peaceful solution to the conflict through dialogue.
Most important crude oil supplier to India
Russia has now become India’s most important crude oil supplier, surpassing Iraq. Overall, Indian imports from Russia in the 12 months ended March 31 nearly quadrupled to $46.33 billion. However, Russia is forced to sell its crude oil at steep discounts.
Industry Minister Manturov said that Moscow is making efforts to increase imports of machinery from India. “We need to find a niche product that India can replace,” he told reporters. Trade between India and Russia has soared since the West imposed sanctions on Russia over its invasion of Ukraine last year. This has not only changed the flow of goods in the raw materials market.
Russia exports products from key sectors
The Portal news agency reported in November that Russia may want to import more than 500 products from India for key sectors such as cars, planes and trains. Because of Western sanctions, Moscow is struggling to keep Russia’s main industries running. India, for its part, is committed to reducing its growing trade deficit with Russia. The country has been India’s biggest supplier of military equipment for decades and is also the fourth largest market for Indian pharmaceuticals.
Foreign Minister Jaishankar said the Indian economy could benefit from Russian technology. The government is therefore working to resolve problems in the areas of payments, certification and logistics.
Relations with Gazprombank deepened
To speed up trade between the two countries, Russia’s Gazprombank has also expanded its ties with India. “We have worked hard to establish our partnership with Indian banks and our representatives here have worked hard,” Elena Borisenko, deputy chief executive of Gazprombank, told Portal on the sidelines of an India-Russia trade dialogue event in New Delhi.
Gazprombank is Russia’s third largest creditor by assets. It plays an important role in handling the Russian energy trade.