India-Russia Seek to Strengthen Trade, Energy, Defence Links

• Russia aims to help reduce India’s trade deficit and proposes a framework to shield bilateral trade from third-country pressure
• Crude oil supplies to India will stay stable, with any decline expected to be brief
• Putin-Modi talks will focus on trade, energy cooperation, nuclear projects, and defence collaboration

India-Russia ties are set to deepen as both sides work to reduce the trade deficit, strengthen bilateral trade and energy cooperation, expand defence cooperation, stabilise crude oil supply, and build a new payment architecture that can withstand sanctions pressure during the upcoming Putin-Modi summit, while boosting Russian imports, increasing Indian exports, advancing their strategic partnership, enhancing nuclear cooperation, countering geopolitical pressure, and exploring national currency settlement.

Russia suggested that it could work with India on its growing trade deficit and suggested establishing a trade framework that could protect India from pressures by third countries that may affect bilateral trade.

Dmitry Peskov, Press Secretary to the Kremlin, spoke of President Vladimir Putin's upcoming trip to New Delhi by stating that Moscow has been attempting to stabilize crude oil trade to India as it attempts to recover from a short-term drop due to western sanctions.

During the summit, Peskov said that talks with Modi would focus on ways to enhance trade and energy cooperation, grow small modular nuclear reactor initiatives, and advance new defence initiatives. Putin is anticipated to arrive in New Delhi on Thursday for the annual meeting of the two nations.

“There is a real imbalance in our trade. We know our Indian friends are concerned about that. We are jointly looking at the possibilities of increasing imports from India. We want to buy more from India”, he added.

Peskov acknowledged that India is uneasy about its significant trade imbalance with Russia and expressed Russia's interest in increasing its imports of Indian goods. Russia currently imports $65 billion of commodities from India, while India's total imports from Russia are close to $5 billion.

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He indicated that crude oil deliveries to India would remain stable and that any anticipated decrease in crude oil deliveries will only be temporary.

Russia has recently expressed a desire to work with India to resolve the growing trade imbalance. Russia has proposed the development of a system to protect trade between the two countries from third-country actions.

Kremlin spokesperson Dmitry Peskov commented that Russia is taking steps to restore the stability of crude oil supplies that were affected by Western sanctions.

According to Peskov, President Putin will meet with Indian Prime Minister Narendra Modi on Friday to discuss ways to enhance trade, expand energy partnerships, increase cooperation on small modular reactor projects, and explore new options for defense collaboration. President Putin is scheduled to arrive on Thursday for this year's bilateral meeting.

Peskov recognised that India is uncomfortable with the current level of trade imbalance and indicated that Russia is interested in increasing the amount of goods imported from India.

India currently imports approximately $65 billion worth of Russian-made products, while Russia imports approximately $5 billion worth of Indian goods. Peskov also stated that Russia anticipates steady supply of crude oil to India, with any future decline in supply expected to be short-lived.