India ignores US pressure and agrees to boost trade relations with Russia

BarcelonaHe Russian President Vladimir Putin's official trip to India It has apparently proven as beneficial as he had hoped. The Kremlin leader was received with full honors, including a red carpet and a 21-gun salute. Indian Prime Minister Narendra Modi described the relationship between the two countries as a "steady North Star," based on "deep trust and respect that has stood the test of time." Both leaders agreed to further strengthen this relationship, expanding and diversifying trade beyond oil and defense, despite pressure from the United States for India to reduce its ties with Moscow.

Since launching the full-scale invasion of Ukraine, Putin has kept international travel to a minimum, but relations with New Delhi—along with those with China—are practically a matter of life or death for the Russian economy. India is Russia's largest arms buyer and, over the past three years, has also become a major partner in the purchase of Russian oil. But at the same time, India is dependent on trade with the United States. Donald Trump has accused Modi of funding Russia's war against Ukraine by buying its oil, and last month India's largest oil companies almost completely stopped buying Russian crude. after the US sanctions on Russian oil giants.

Nevertheless, Putin leaves India with a cooperation program until 2030 and a commitment to accelerate negotiations for a Free Trade Agreement between India and the Eurasian Economic Union, which includes Russia, Kazakhstan, Belarus, Armenia, and Kyrgyzstan. The two leaders signed a roadmap to increase trade to $100 billion – current trade between the two countries stands at around $64 billion. They also confirmed that 96% of payments are made in national currencies, thus bypassing the Western financial system and dollar transactions to avoid the impact of sanctions.

The cooperation agreement includes the construction of a large pharmaceutical factory in Russia that will utilize advanced Indian technology, allowing Moscow to reduce its dependence on Western medicines. Both countries also agreed to facilitate the relocation of Indians to Russia for work, establish a joint fertilizer plant in Russia, and boost cooperation in agriculture, healthcare, and maritime transport. In the defense sector, they have agreed to enhance joint research and development, as well as the production of advanced defense platforms. This would include the joint production in India of spare parts, components, assemblies, and other products for the maintenance of Russian weapons and military equipment. Oil exports

Regarding hydrocarbon exports, Putin asserted that Russia is prepared to maintain "uninterrupted fuel shipments to the Indian economy," thus attempting to dispel doubts generated by sanctions on Moscow's oil tanker fleet. The joint statement released after the summit refers to the intention to remain independent of Western pressure: "The leaders emphasized that in the current complex, tense, and uncertain geopolitical situation, Russian-Indian ties remain resilient to external pressure."