India-Russia Ties to Gain Momentum at Modi-Putin Summit Amid US Sanctions

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New Delhi: The upcoming summit between Indian Prime Minister Narendra Modi and Russian President Vladimir Putin on December 5 is expected to strengthen bilateral trade and defense ties between the two nations. At the heart of the discussions are measures to shield India-Russia trade from US sanctions, an offer on small modular reactors for nuclear energy, and deepening defense cooperation. Putin's visit, which begins on December 4, comes as India seeks to assert its strategic autonomy by revitalizing defense and economic partnerships with Russia amidst growing pressure from the US to reduce purchases of Russian oil and military equipment. Russia aims to safeguard its growing trade and economic ties with India from US sanctions and inject new life into long-standing cooperation in defense and civil nuclear energy. An agreement on the mobility of skilled and semi-skilled workers has been finalized, and negotiations on a free trade agreement (FTA) between India and the Eurasian Economic Union are underway. The FTA is expected to address New Delhi's concerns about tariff and non-tariff barriers to trade. Dmitry Peskov, Putin's spokesman, stated that Russia will not allow external interference in its growing trade with India, despite a 25% tariff imposed by the US on Indian goods over Russian oil purchases. Russia is the top crude supplier to India, but oil imports are set to hit a three-year low this month. To mitigate the impact of US sanctions, Russia has developed technologies for continued trade that can be made more sophisticated if the levies persist. In the defense sector, Russian-made weaponry accounts for 36% of India's armed forces, and Moscow is keen to expand cooperation. The supply of the Su-57 combat jet and additional batteries of the S-400 air defense system will be up for discussion. India and Russia are also working on several measures to balance two-way trade, currently skewed in Moscow's favor. Bilateral trade has increased more than five-fold from $13 billion in 2021 to $68 billion in 2024, driven by India's energy imports. The two sides aim to boost this volume to $100 billion by 2030. The war in Ukraine is expected to be a topic of discussion during the summit, with both sides acknowledging the need for a peaceful solution. India has maintained its long-standing position that the war cannot be decided on the battlefield without dialogue and diplomacy. The summit is also expected to see the signing of several agreements covering areas such as trade, academia, agriculture, and culture. A business event will be organized by FICCI and Roscongress to drive exports and deepen cooperation in the fertilizers sector, where Russia supplies three to four million tonnes annually.