Modi, Putin meet to deepen economic ties despite US pressure
It’s Putin’s first trip to India since Russia’s full-scale invasion of Ukraine
[NEW DELHI] Indian Prime Minister Narendra Modi and Russian President Vladimir Putin pledged to widen economic ties in the face of pressure from US President Donald Trump to slam the brakes on an oil trade that surged after the Kremlin’s war on Ukraine.
Putin is making his first trip to India since Russia’s full-scale invasion of Ukraine to showcase the longstanding partnership between the two nations that dates back to the Cold War. Those ties have centred on defence, but Modi and Putin broadened cooperation to include deeper trade, migration and economic links.
The two leaders said they discussed issues including expanding economic ties, cooperating on Arctic navigation and continuing work on civilian nuclear power. Modi added that he has held regular talks with Russia about Ukraine and has pushed for a peaceful resolution.
India has adopted a cautious position on the war – calling for a halt to the fighting but reluctant to criticise Russia’s invasion and abstaining from United Nations votes condemning it.
“I have said this earlier as well, peace is the only way to progress. We must all look for a road to peace,” Modi said.
Intense US-led shuttle diplomacy in recent days has failed to break the deadlock as the Kremlin presses demands for territory in eastern Ukraine that Russian forces have been unable to occupy since the illegal invasion. Kyiv has repeatedly rejected the demand.
During the two-day visit, India and Russia finalised a mobility agreement that allows Indian professionals to relocate to Russia, a first for the two countries.
They also signed an agreement for shipments of Indian marine products and agricultural goods to Russia, exports hit by Trump’s 50 per cent tariffs that took effect Aug 1.
Putin called the talks “very useful,” saying the two countries reinforced ties in areas ranging from trade to security to culture.
“Russia is a reliable supplier of oil, gas, coal and everything that is required for the development of India’s energy,” Putin said after their meeting. “We are ready to continue uninterrupted shipments of fuel for the fast-growing Indian economy.”
India, the world’s third-largest consumer of oil, used to source a negligible amount of crude from Russia. But as Western sanctions forced Russian oil exporters to offer deep discounts to replace the loss of European customers, Russia became India’s top supplier.
The US doubled tariffs on Indian goods to 50 per cent to punish New Delhi for buying Russian oil and has pushed India to purchase more American weapons. Despite that pressure, Modi’s government remains in trade talks with the Trump administration, with a negotiating team from Washington expected in India next week.
Officials are also working to finalise a deal for India to lease a US$2 billion submarine from Russia, Bloomberg News reported.
India’s share of Russian imports is now less than 2 per cent. New Delhi and Moscow intend to increase trade to US$100 billion by the end of the decade.
The broadening of ties comes despite heavy criticism from both the US and the European Union, with the meeting underscoring India’s eagerness to keep links with traditional partners warm and look for alternate markets to offset US tariffs.
From direct purchases of military weapons, India and Russia are increasingly moving to joint development and production of arms, collectively designing and manufacturing missiles and guns. BLOOMBERG
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