S Jaishankar Visits Russia
S Jaishankar’s Visit to Russia lasts two days and comes at a time when the United States has imposed a 25% tariff on India for importing crude oil from Russia. However, oil is not the only reason for this important trip. Jaishankar is also addressing trade issues and working on better relations between India and Russia.
Why is Jaishankar in Russia?
Jaishankar is meeting with key Russian leaders. Today, he will talk with Russia’s Foreign Minister, Sergei Lavrov. Earlier, he spoke with First Deputy Prime Minister Denis Manturov. He also attended the India-Russia Inter-Governmental Commission for Trade, Economic, Scientific, Technological, and Cultural Cooperation.
This visit follows a high-level trip by India’s National Security Adviser, Ajit Doval, just two weeks ago. Both visits show India’s effort to strengthen ties with Russia.
Addressing the Trade Imbalance
During his meetings, Jaishankar discussed the trade imbalance between India and Russia. Over the last few years, trade has grown a lot. It went from $13 billion in 2021 to an expected $68 billion by 2024-25. That’s more than five times! But with this growth comes a significant trade imbalance. Jaishankar explained that the gap increased from $6.6 billion to $58.9 billion.
He stressed the need to fix this problem quickly. Jaishankar mentioned that India and Russia have complementary economies. This means their goods and services can work well together. He encouraged Russian companies to engage more with Indian businesses. He noted that India’s growing economy has opened new opportunities for foreign investments.
India’s Economic Growth
- India’s economy is growing at about 7% and is expected to exceed $4 trillion.
- India imports 35% of its crude oil from Russia now, up from only 1% before the Ukraine war.
- The trade goal for India and Russia is to reach $100 billion by the end of the decade.
Jaishankar pointed out that India’s modernization and urbanization create more demands. He invited Russian companies to meet these new needs, especially in areas like transportation, manufacturing, and technology.
Restarting Trade Deal Talks
An important part of Jaishankar’s agenda is to restart discussions on the trade agreement with the Eurasian Economic Union (EAEU). This group includes Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan. Talks for this trade deal stopped in early 2022 because of the Russia-Ukraine war.
In 2024, trade between India and EAEU reached $69 billion, a 7% increase from the previous year. At the recent meeting, both sides finalized the terms of reference for this trade deal.
Oil Trade Under Pressure
Jaishankar’s trip is happening during a crucial time for India. The U.S. has imposed a 25% tariff on India for buying crude from Russia. While the U.S. claims this is to prevent funding for the Ukraine war, India maintains that purchasing oil is essential for its own needs.
Russian officials continue to assure India that oil shipments will not be affected. Roman Babushkin, a Russian diplomat, stated they would find ways to work around U.S. restrictions to meet their national interests. Likewise, Russia’s First Deputy Prime Minister Manturov confirmed that they will keep sending oil and are looking for new ways to export LNG (liquefied natural gas) to India.
Historical Bonds Between India and Russia
Jaishankar’s visit highlights the long-standing relationship between India and Russia. This friendship dates back to India’s Independence in 1947. Over the years, both countries have supported each other in various global matters.
For example, during the 1965 war between India and Pakistan, the former Soviet Union played a crucial role in mediating peace. Even during the recent Russia-Ukraine conflict, India has maintained its strong ties with Moscow. Prime Minister Narendra Modi visited Russian President Vladimir Putin last year to reinforce this partnership.
Currently, about 35% of India’s crude oil comes from Russia, a significant jump from just 1% prior to the Ukraine invasion. Additionally, around 36% of India’s defense equipment comes from Russia, making it a key ally in military matters.
The Future of India-Russia Relations
Looking ahead, it will be interesting to see how India and Russia manage their relationship amid external pressures, like the U.S. tariffs. Both countries show a strong desire to strengthen their bonds further. Russian President Putin is also expected to visit India later this year as part of this ongoing effort.
As Jaishankar’s visit wraps up, it is clear that both nations aim to bolster trade and cooperation in various sectors. This could set the stage for a new level of partnership between India and Russia in the coming years, regardless of the challenges they face.
With these developments, it seems unlikely that New Delhi and Moscow will back down to pressure from Washington. The future looks promising as both countries seek to deepen their economic ties.
