In a significant diplomatic move, Russian President Vladimir Putin arrived in New Delhi on 4 December 2024, aiming to boost economic ties with India amid increasing American pressure on the nation to curtail its purchases of Russian oil.
Strengthening India-Russia Relations
Putin’s visit marks his first trip to India in four years. It underscores the enduring partnership between the two nations, dating back to the era of the Soviet Union. The two leaders are working to enhance their trade relations, with an ambitious target of reaching US$100 billion in bilateral trade by 2030.
Energy Security and Trade Deals
- Putin reassured India of uninterrupted fuel shipments, stating, “Russia is a reliable supplier of oil, gas, coal, and everything that is required for the development of India’s energy.”
- Prime Minister Narendra Modi expressed gratitude for Putin’s “unwavering commitment” to India, emphasising energy security as critical for their partnership.
- Both leaders discussed an economic cooperation programme set to diversify trade until 2030, covering sectors from health to shipping.
Background of US Pressures
The backdrop of this meeting is intensified scrutiny from the US following its imposition of 50 per cent tariffs on most Indian goods. American officials argue that India’s continued imports from Russia inadvertently finance Moscow’s ongoing war efforts in Ukraine.
Bilateral Trade Growth
Despite recent pressures, India has seen a phenomenal rise in trade with Russia, soaring to nearly US$69 billion for the financial year 2024-25, primarily due to energy imports. However, this figure may dip following the US tariffs, which have created a ripple effect in India’s import dynamics.
As noted by Deputy Kremlin Chief of Staff Maxim Oreshkin, Russia seeks more Indian goods—ranging from automobiles and electronics to textiles—to balance the current trade disparity heavily tilted towards energy.
A Long-Standing Partnership
Modi received Putin with a warm embrace upon arrival, highlighting the strong ties between the two leaders. Their discussions signal a mutual commitment to enhancing cooperation across various sectors, reflecting a time-tested friendship that has flourished despite global challenges.