The Indian foreign minister Subramaniam Jaishankar on Monday met Russian Deputy Prime Minister Denis Manturov to discuss bilateral trade arrangements at an event organized by the Federation of Indian Chamber of Commerce and Industry (FICCI). The growing business dialogue comes against the backdrop of the ongoing war between Russia and Ukraine.
Crude Oil & Military Trade
Indian and Russian trade dialogue will deepen the support and smooth communication between the two countries, according to Deputy Prime Minister and trade minister Denis Manturov. The relationship between India and Russia are growing since the war broke out between Russia and Ukraine. The largest portion of the imports from Russia compose of crude oil. Russia has also replaced Iraq as India’s largest supplier of crude oil.
Russian-Ukrainian war impact on trade
While the Western nations have called the action of Russia towards Ukraine an ‘unprovoked war of conquest’, according to Russia it is a special military operation against the security threats to Russia. India has not opposed the action. However, India has also expressed its hope for a peaceful resolution through bilateral dialogues.
Foreign speculations
The growing relationship between India and Russia has been criticized by major Western powers who had previously called on India to distance itself from Russia due to its invasion of Ukraine. The Western nations have also disapproved of rising talks between India and Russia due to the latter being a major weapon supplier.
Source: Hindustan Times
Nevertheless, India seems to be maintaining positive relations through recent trade deals in crude oil and arms. India is increasingly importing Russian products, which has quadrupled in the last financial year. The talk comes at a time when India is simultaneously engaging in FTA discussions with Britain, the European Union and Gulf Cooperation Council.
Russia’s Bid to Asian Counterparts
The deputy Prime Minister of Russia Denis Manturov has also expressed his affirmation of the growing friendship with India. According to him, Russia will be attentive to mutual access of production to the markets of the two countries. Additionally, he had called India one of its trusted partners. Indian Foreign Minister S. Jaishankar had also stated his hopes to develop greater relations with Russia which had seen a setback during the pandemic. He stated that Indian businesses will grow with Russian technology.
Source: FICCI
The Russian counterpart informed the public after the meeting on Monday that the Russian market requires road construction materials and equipment, chemicals and pharmaceutical products, due to which Indian companies will get the opportunity to expand their markets into Russia. Russia has sought to import more than 500 Indian products, primarily for sectors like automation, aircraft and trains to the country. This is because the Western sanctions have affected the functioning of the core industries in Russia, to correct which Russia is looking for Asian counterparts. Russia had recently agreed to settle the payment for the nuclear plant development in Bangladesh in yuan. It has also been in discussions for oil imports to Pakistan at discounted rates.
Source: FICCI
Denis Manturov has also expressed his willingness to consider trading in the national currency of India and other friendly countries. This is a move which India has long been hoping to achieve. Currently, the largest importer of defence hardware, Russia has now become the largest supplier of oil to India, which has been proportionally very less prior to the war. The dialogues form a part of Russia’s strategy to improve relations with Asian counterparts like India and China against the backdrop of Western sanctions.
