NEW DELHI: India and Russia ought to undertake a “extra inventive and revolutionary method” to sort out challenges posed by a fancy geopolitical scenario, exterior affairs minister S Jaishankar stated on Wednesday whereas co-chairing a gathering of a bilateral financial panel amid US threats of punitive motion towards vitality commerce between New Delhi and Moscow.
Jaishankar additionally sought pressing steps to handle the sharp imbalance in India-Russia commerce and to diversify commerce and funding between the 2 sides, whereas addressing the assembly of the India-Russia Inter-Governmental Fee for Commerce, Financial, Scientific, Technological, and Cultural Cooperation (IRIGC-TEC) in Moscow.
The assembly, a part of preparations for Russian President Vladimir Putin’s deliberate go to to India later this 12 months for a summit with Prime Minister Narendra Modi, was held towards the backdrop of the Donald Trump administration within the US railing vitality commerce between India and Russia. The US is ready to impose a 25% punitive tariff on Indian exports from August 28 over Russian oil purchases, which might be along with a 25% reciprocal tariff.
“We’re all acutely conscious that we’re assembly within the backdrop of a fancy geopolitical scenario,” Jaishankar stated with out referring to the commerce and tariff insurance policies of the US. The totally different working teams underneath the IRIGC-TEC, he prompt, ought to undertake a “extra inventive and revolutionary method” to face the challenges posed by the geopolitical panorama.
Russian deputy prime minister Denis Manturov, who co-chaired the assembly, emphasised Moscow’s dedication to persevering with to fulfill New Delhi’s vitality wants. “We proceed to ship gasoline, together with crude oil and oil merchandise, thermal and coking coal. We see potential for the export of Russian LNG,” he stated.
The Indian facet reiterated its issues in regards to the imbalance in two-way commerce, pushed largely by purchases of Russian vitality, whereas Indian exports have remained stagnant. Bilateral commerce reached a file of $68.7 billion in 2024-25, though India’s exports had been valued at solely $4.88 billion.
Jaishankar famous that two-way commerce in items has elevated greater than fivefold previously 4 years, whereas the imbalance has risen ninefold from $6.6 billion to $58.9 billion. “So we have to tackle that urgently,” he stated.
He prompt that addressing tariff and non-tariff commerce limitations, eradicating bottlenecks in logistics, selling connectivity by means of the Worldwide North-South Transport Hall, Northern Sea Route and Chennai-Vladivostok Hall, and implementing cost mechanisms easily may assist sort out the imbalance and permit the 2 sides to attain the goal of rising commerce to $100 billion by 2030.
Jaishankar additionally referred to as for the early conclusion of the India-Eurasian Financial Union free commerce settlement, whose phrases of reference had been finalised on Wednesday. Financial cooperation might be deepened by the smoothness of commerce settlements, diversification of the commerce basket, creating extra joint ventures and collaborating on the mobility of execs, he prompt.
“We should always not get caught on a overwhelmed observe. Doing extra and doing in a different way must be our mantras,” he stated, whereas calling for the setting of quantifiable targets and particular timelines for commerce and funding and for tackling limitations.
India and Russia have two inter-governmental commissions, one for commerce and technology-related points and one other for defence and navy cooperation, and these are among the many highest bilateral decision-making our bodies. The India-Russia Inter-Governmental Fee on Army Technical Cooperation is ready to fulfill in New Delhi within the coming weeks.
Manturov stated that along with direct provides of crude oil, the 2 sides are collectively implementing tasks to extract and course of hydrocarbons in Russia and India. “We plan to develop complete cooperation within the peaceable nuclear sector, together with on the idea of the profitable expertise of the Kudankulam NPP building challenge,” he stated.
Putin and Modi have spoken on the cellphone twice in current weeks to debate the scenario in Ukraine and the general bilateral relationship. The fallout from the actions of the US administration can be understood to have been mentioned of their cellphone conversations.
The exterior affairs ministry has defended India’s purchases of Russian vitality and bilateral defence ties on the grounds that they’re linked to the nation’s vitality and nationwide safety pursuits.
