Russia seeks Indian drug imports
After stringent sanctions and logistic logjams following the Russian invasion of Ukraine, Russia is seeking India’s help to aid its supply of medical equipment. Due to curtailed imports from the US and other European countries drug prices in Russia have increased by more than 20%. This has forced both pharmacists and consumers to pile upon the supplies which are  fast running out.
Russia has requested Pharmexil, the Indian government agency which promotes medical experts, to provide it with an urgent supply of drugs through the Indian Embassy in Moscow.
Rajiv Nath, a forum coordinator for the Association of Indian Medical Device Industry asserted that a virtual meeting will be conducted between the companies which supply medical equipment in both the countries on April 22 to deliberate on ways to expand trade ties in a mutually beneficial way. The meeting was also confirmed by Business Russia; a group in Moscow that focuses on boosting bilateral relations.
In light of the entire situation, India hopes to boost exports to Russia which have been considerably meager to date. The two nations are trying to work out a payment scheme in local currencies similar to the one used during the Cold War to maintain bilateral trade while Moscow faces international isolation.
All doors closed for Russia
The Russian war on Ukraine has jeopardized the world’s economy and has resulted in sky-high gold and crude oil prices. The country has been subjected to several sanctions, especially from the
Western world, which has left the Russian economy in shambles. However, the entire situation has opened up new doors for Indian exporters who can benefit from the expanding trade relations between the 2 countries. High-level discussions are being held to devise a method that enables rupee-ruble trade, which would highly benefit the Indian economy.
At present, India is an insignificant player in the Russian market but is anticipating increasing its exports to almost 10-fold to 2 billion rupees ($26.2 million) this year, according to Nath.
Reason for the scarcity
The fundamental reason for the current drug scarcity in Russia is that their banks have been cut off from the international banking system as a result of the ongoing conflict with Ukraine. This has created a situation where the pharmacies of the country are unable to pay for deliveries.
According to surveys conducted by many professional organizations, Russian doctors are facing a shortage of more than 90 medicines. The country is also facing an array of logistical issues since a lot of shipping companies including market leaders like Maersk have discontinued operations in and out of Russia.
How will this benefit India?
The US impediment has also resulted in a scarcity of consumer goods in Russia. Russian enterprises have also pursued India for food items amongst intense scarcity of everyday food. Indian exporters view this as a fantastic opportunity to widen their hold in Russia. In several statements, Russia has asked thanked the Indian government for its continued support and asked them to continue the supply of food and medication.
At present, India is walking on a diplomatic tightrope where it’s trying to balance its ties with both Moscow as well as the west. India has remained neutral and abstained from voting on several motions raised in the United Nations against the alleged illegal Russian invasion.
India’s strategy has raised a lot of questions and pointed fingers, particularly from the West, over whether the world’s largest democracy should have taken a clearer stand. On the other hand, in past Russia accustomed itself to the growing ties between India and the US but it wouldn’t prefer it for India to cross the red line called Ukraine.
Published by -Supreeti Ghosh
