The India-Russia relationship has strengthened under Modi and Putin, focusing on defense, energy, and economics.

The two countries have signed a deal worth over $677 million to produce 600,000 AK-203 rifles.

India and Russia aim to reach $30 billion in bilateral trade by 2025.

India's rivalry with China has impacted its relationship with Russia, which views India as a "strong and reliable ally".

India has continued to buy Russian defense equipment, including S-400 systems, in a $5.43 billion deal, despite US sanctions.

The US has considered sanctions on India for buying Russian military equipment, but has not imposed them.

India is mitigating US sanctions by using national currencies and alternative payment methods.

The North-South Corridor project is expected to increase transport capacity by 85% by 2030, boosting India-Russia trade and economic cooperation.

The project will reduce transport time by 30 to 50% compared to the Suez Canal for India-Russia trade.

The corridor stretches 7,200 kilometers from Russia to India, comprising a multi-mode network of sea, rail, and road routes.

India has increased energy purchases from Russia, strengthening trade and economic cooperation between the two countries.

India's $15 billion investment in Russian oil and gas assets has strengthened the India-Russia relationship.

US sanctions have led India to increase its Russian oil imports to 1.1 million barrels per day.

India has been buying Russian oil at discounted prices, below $70 per barrel, to reduce its energy costs.

Russia is now India's largest oil supplier, accounting for 46% of its crude oil imports.

The US has warned India of the risks of buying discounted Russian oil.

India is likely to continue buying Russian oil due to its cheap and reliable supply.

The India-Russia relationship has strengthened under Modi and Putin, focusing on defense, energy, and economics.

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'India great power and a time-tested friend', says Russia's Vladimir Putin

India, Russia hold 21st summit, and first 2+2 dialogue; sign 28 agreements

Topics
indian government | India-Russia ties | Narendra Modi

Ajai Shukla  |  New Delhi

Prime Minister Narendra Modi receives Russian President Vladimir Putin at Hyderabad House in New Delhi, on Monday (Photo: PTI)

New Delhi and Moscow on Monday issued to the world a high-visibility reminder about their “Special and Privileged Strategic Partnership”, as Prime Minister and Russian President held the 21st India-Russia Summit, an annual ritual missed only in 2020 due to the pandemic.

Leading into the 21st summit meeting, India and Russia held their first-ever 2 + 2 Ministerial Dialogue, in which External Affairs Minister S Jaishankar and Defence Minister Rajnath Singh together held strategic discussions with Russian Foreign Minister Sergey Lavrov and Defence Minister Sergei Shoigu.

“We perceive India as a great power, a friendly nation and a time-tested friend. The relations between our countries are growing and I am looking into the future,” Putin said in his initial comments.

Putin also expressed concern over the developments in Afghanistan and said India and Russia will continue to coordinate on major challenges facing the region.

Modi said Putin’s second visit abroad during the Covid-19 pandemic reflected his personal commitment to the and that the special and privileged strategic partnership between the two sides was getting stronger. In the last few decades, the world witnessed many fundamental changes and different kinds of geopolitical equations and variables, but the friendship of India and Russia remained constant, Modi said. “Your visit to India is a reflection of your commitment to ties with India,” the PM said.

Foreign Secretary Harsh Vardhan Shringla said 28 agreements were concluded between India and Russia after Modi-Putin meet. After the 2+2 meeting, Jaishankar tweeted: “A productive exchange of perspectives on cross-cutting and inter-related issues. Will be reporting it to the Annual Summit later today.”

Earlier on Monday, there was a meeting of the apex body that governs defence relations between the two: The Indo-Russian Inter-Governmental Commission on Military Technical Cooperation (IRIGC-MTC), co-chaired by the two defence ministers, Singh and Shoigu.

India’s military uses Russian weaponry extensively, such as Sukhoi-30MKI fighter aircraft, T-90S tanks and BMP infantry combat vehicles, Talwar-class frigates, and Kilo-class submarines. The two sides have jointly produced the highly regarded BrahMos cruise missile system.

During the 17th annual summit, the two countries concluded deals on India’s procurement of five units of the S-400 air defence systems for an estimated ~37,000 crore, constructing Talwar-class frigates under Project 1135.6, and a shareholders’ agreement on a joint venture (JV) to manufacture Kamov-226T helicopters in India.

The S400 is regarded as the world’s premier long-range missile system, with the ability to shoot down enemy aircraft at ranges up to 400 kilometres. During the confrontation over the last two years between the Chinese and Indian armies in Ladakh, China deployed the S400 along the Line of Actual Control (LAC).

On March 3, 2019, in Amethi, Modi announced another JV —Indo-Russian Rifles — that would manufacture 750,000 AK-203 assault rifles in Korwa under the “Make in India” programme for an estimated $687 million. Russia is also competing for a ~40,000-crore deal for building six submarines in India under Project 75I, and a ~50,000-60,000 crore agreement to manufacture 114 fighter aircraft in India.

To ensure that Russian defence equipment was not hampered by any shortfall in maintenance or spare parts, the two sides agreed during the 20th Annual Summit in Vladivostok in September 2019 to cooperate in producing spare parts for Russian/Soviet military equipment.

The India-Russia defence partnership is being tested by Washington, especially through the piece of legislation the US Congress passed in 2017, titled CAATSA (Countering America’s Adversaries through Sanctions Act). This provides for US sanctions on countries that have significant defence or intelligence relations with Russia, Iran, or North Korea. India’s purchase of the S400 missile system is regarded as a potential trigger for Washington to impose sanctions.

While the US Congress has created a “CAATSA waiver” for close partners such as India, the US president is required to determine whether to exercise that waiver. So far, President Joe Biden has not stated a preference.

India, which faces a growing threat from China, is determined to buy the S400 from Russia. Asked whether New Delhi would bow to CAATSA pressure, India’s foreign ministry spokesperson said last week: “India and the US have a special global strategic partnership. And we also have a very special and privileged strategic partnership with Russia. And as you’re all aware, we pursue an independent foreign policy. This applies to our defence acquisitions, and supplies which are and will continue to be guided by our security interest.”

New Delhi and Moscow have identified trade and economic relations as a priority area. Modi and Putin have set a bilateral investment target of $50 billion and a bilateral trade target of $30 billion by 2025. (With inputs from PTI)

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First Published: Tue, December 07 2021. 01:24 IST
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How has trade level between India and Russia changed under Modi and Putin?

In what fields are India and Russia cooperating?

What do Putin and Modi officially characterize Russia/ India relationship as?

The two countries have signed a deal worth over $677 million to produce 600,000 AK-203 rifles.

How has trade level between India and Russia changed under Modi and Putin?

In what fields are India and Russia cooperating?

weapons supply
commerce
investment
security & military
weapons joint production

India and Russia aim to reach $30 billion in bilateral trade by 2025.

In what fields are India and Russia cooperating?

India's rivalry with China has impacted its relationship with Russia, which views India as a "strong and reliable ally".

Title:

Content: Russia / India / Politics / Military
Modi Meets Putin, Putin Praises India as ‘ Strong and Reliable Ally ’
Putin, who is visiting India, praised India as a "strong and reliable ally" of Moscow. Putin's visit focused on "energy" and "defense". The foreign ministers and defense ministers of the two sides held their first 2 + 2 meeting and signed a number of military cooperation agreements.
In a joint statement, the two sides reiterated their intention to strengthen defense cooperation and achieve the goal of reaching US $30 billion in bilateral trade by 2025.
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Indian diplomats said on Monday that Russia had begun supplying India with S-400 long-range air defense systems.
During Putin ’ s meeting with Indian Prime Minister Narendra Modi, the two sides also signed a 10-year military cooperation agreement and an oil cooperation agreement.
In a joint statement issued after the meeting, the two sides reiterated their intention to strengthen defense cooperation, including joint research and development and production of military equipment. They also stressed the need to achieve the goal of 30 billion US dollars in bilateral trade by 2025, and strengthen cooperation in energy and satellite navigation.
Speaking to the media before his meeting with Modi, Putin said: "We consider India to be a big country, a friendly country and a security ally."
Putin ’ s trip to India is aimed at strengthening ties with India ’ s traditional allies, which are being eroded by the United States.
To counter China ’ s rise, the United States has established the Quad Security Dialogue (Quad) with India, Japan and Australia, drawing attention from Beijing and Moscow.
During the Cold War, India had close relations with the Soviet Union, a relationship that continues to this day, described by New Delhi as a “special and privileged strategic partnership. ”
Indian Prime Minister Narendra Modi met with visiting Russian President Vladimir Putin on Monday to discuss defense and trade relations between the two countries to strike a balance with the United States.
"Over the past few decades, there have been many fundamental changes in the world, as well as various geopolitical elements, but India's friendship with Russia has always been the same," Modi said before the meeting with Putin.
India ’ s foreign ministry said the annual bilateral summit covered political and defence issues.
The two leaders also discussed the takeover of the Afghan regime by the Taliban earlier this year, which has led to a humanitarian crisis in Afghanistan.
India and Russia have long had close ties, and both sides have set a goal of reaching US $30 billion in bilateral trade by 2025.
But recently, India and the United States have drawn closer, seeing the United States as a key force in the fight against China.
India, while strengthening its military ties with the United States, is also trying to manage its defense relations with Russia.
India, a major arms importer, relied heavily on the former Soviet Union for its military supplies during the Cold War, and now buys weapons from the United States in a decentralized manner.
Under former US President Donald Trump, India signed more than US $3 billion in arms purchase contracts with the United States, and the two countries ’ armaments trade has increased from zero in 2008 to US $15 billion in 2019.
On the other hand, India ’ s purchase of the Russian-made S-400 missile system to counter China has become a major problem in relations with the United States.
This sophisticated anti-aircraft missile defense system, once available, is expected to give India the strategic deterrent power against China and Pakistan.
However, the United States has asked partners not to purchase Russian-made military equipment, or it may impose sanctions.
In addition, India and Russia held their first 2 + 2 meeting in New Delhi on Monday, where they signed a number of cooperation agreements on "military and small arms".
Russian Foreign Minister Sergei Lavrov and Defense Minister Sergei Shoigu arrived in New Delhi on Monday night and held a 2 + 2 meeting with Indian Foreign Minister Igor Sujason and Defense Minister Manmohan Singh.
The Ministerial 2 + 2 meeting was the first between India and Russia.
Singh tweeted after the meeting that discussions on defence cooperation between the two sides had been fruitful and that India valued the "special strategic partnership" with Russia.
He added that the two sides had signed several agreements, contracts and protocols on small arms and military cooperation.
However, Singh and India ’ s Ministry of Defence have yet to release a formal statement or press release disclosing details of the various agreements signed with Russia.
Indian media reported that one of the major agreements was the technology transfer and local production of the Russian-made AK-203 assault rifle.
Under the agreement, India will produce more than 600,000 AK-203 assault rifles in India over the next 10 years through an Indo-Russian joint venture.
Another deal is to extend the 10-year India-Russia military-technical cooperation agreement until 2031.

Why is maintaining a relationship with India important for Russia?

Why is maintaining a relationship with Russia important for India?

India has continued to buy Russian defense equipment, including S-400 systems, in a $5.43 billion deal, despite US sanctions.

Title:

Content: National

Will India face sanctions for S-400? | Worldview with Suhasini Haidar

Russian President Putin will be in India in early December and so will the Russian S-400 Triumf long range air defense systems — and the question is,  will the US government place sanctions on India, or will President Biden use his powers for sanctions waiver.

Countering American Adversaries Through Sanctions Act (CAATSA) is a 2018 American law, pushed by the Democrats during US President Trump’s tenure that mandates the US government to put financial sanctions, travel bans on any country or its officials who are part of transacting any significant defence or intelligence deal with Russia, Iran or North Korea. Remember this is a US law, not a UN rule or international law, and can be ignored by any country

What are the kinds of sanctions the U.S. can impose?

According to CAATSA, Section 231 and 235, the US President must impose no less than 5 of about 12 actions, that include

1.      Stopping credit lines from US and putting pressure on international banks like IMF

2.      Cancelling, blocking sales of licensed goods and technology- The US cancelled a deal to sell Turkey F-35 jets

3.      Banning banks, manufacturers and suppliers, property transactions from the sanctioned country, making it difficult to do trade

4.      Financial and visa sanctions on specific officials- With both China in 2018, and Turkey in 2020, the US froze accounts and cancelled visas to both the importing Defence authorities and their Directors.

What is India’s stand on the US sanctions?

-        Theoretically, India doesn’t accept or honour unilateral sanctions imposed by any country, and only follows the UN and international law

-        However, the Modi government made an exception to this precept when it decided to cancel its oil supplies from Iran and Venezuela under the threat of US sanctions in 2019. While the US had made a “carve-out” for Iran’s Chabahar port, India also reduced its planned investment in the Iran port and rail connectivity deal as well, due to other sanctions by the US on Iranian companies and oil entities.

-        On S-400, the Modi government has stood firm. In 2018, one year after the CAATSA law was passed, and after it became clear that S-400 could trigger US sanctions, India went ahead  with the deal, made advance payments through a rupee-rouble mechanism, and has now begun to receive initial parts shipments of the first of five S-400 systems it has bought for $5.43 billion dollars

-        When asked, the MEA said the possible sanctions were being “discussed” with the US government, acknowledging that India is not ignoring these US sanctions, but Indian diplomats have also said the S-400 is about India’s national security interests and cannot be cancelled

-        India has also made the point that Russia is a traditional or legacy defence partner, making up about 70% of its current arsenal. While India has grown its defence purchases from the US manifold, it is difficult to reduce Russian purchases beyond a point. Besides, the Military decided that the S-400 beat other market alternatives,

What are the US’s choices?

The Russian delivery of CAATSA parts this month has already thrown down the gauntlet for the US government, and it now has to decide what to do next.

1.      The US could go ahead, as it did with China and Turkey and announce financial sanctions on India, or on defence entities here

2.      Biden could delay the sanctions for six months at a time, and will need to certify that the waiver for India is “vital to the national security interests” of the US. This should not be hard, given that India is an important strategic partner to the US in the Quad, and US efforts at countering China’s actions in the Indo-Pacific.

3.      There is already a CAATSA amendment proposal brought about by 3 Republican senators called CRUCIAL: the Circumspectly Reducing Unintended Consequences Impairing Alliances and Leadership Act “ that would essentially build a waiver for the US’s Quad partners, and Democrats could help pass that in the upcoming December or January congress sessions. This would need Biden to certify that India is not  participating in quadrilateral cooperation on security matters that are critical to United States strategic interests before imposing sanctions on India.

4.      Biden could terminate the sanctions use against India, if he makes a determination that India “will not knowingly engage in activity subject to sanctions under subsection (a) in the future.’’ This is an assurance India is unlikely to ever give the US

5.      The fourth option, that the US seems unlikely to do, is to scrap the CAATSA law itself, given that it contravenes the UN order, is purely unilateral, and even whimsical, depending on which way the US’s relations are at. For example, the US placed sanctions on Iran, withdrew them and then reimposed them all in the space of a decade. The US treasury department lists no less than 35 different sanctions regimes that are in place at present.

The US is most likely to exercise option 2 for the moment, delaying the sanctions, but keeping the threat of CAATSA sanctions alive until it considers the other options. India is not only an important partner, any move to sanctions will backfire for the US, and could even cause India to strengthen its defence relationship with Russia. Finally it could weaken the US’s coalitions to counter China.

What could be some of the reasons if it doesn’t waive sanctions if expected to?

-        Waivers weaken the CAATSA law, which after all the Democrats brought to congress

-        A waiver to India will be protested by Turkey, a NATO ally which houses 2 US bases in Incirlik and Izmir. Turkey’s government will ask why they were sanctioned if India isn’t

-        The Biden government won’t want to encourage other countries, like Saudi Arabia to conduct defence deals with Russia in the hope of also getting a waiver. The US had offered Saudi Arabia the Terminal High Altitude Area Defense system THAAD when KSA entered discussions on the S-400.

Clearly the US is confronted with Catch-22 on CAATSA, and needs to recognise the perils of its unilateral sanctions. Apart from having little effect on the regimes it wishes to weaken, like Iran, North Korea and Russia, and impacting poorer people in the country instead, it is a clear contravention of the “rules based international law” that the US espouses, and bases its ties with India on. India’s tough stand on this must be unwavering, unlike the case of Iran oil.

Book recommendations:

- Economic Sanctions and American Diplomacy by Richard Haass in 1998

- Containing Russia: How to Respond to Moscow's Intervention in U.S. Democracy and Growing Geopolitical Challenge by Robert Blackwill and Phillip Gordon

- American Dove: US Foreign Policy and the Failure of Force by Zachary Shirkey

- The Iran Wars: Spy Games, Bank Battles, and the Secret Deals That Reshaped the Middle East by Jay Solomon

- A New Era: India-Russia ties in 21st century by Nandan Unnikrishnan and others

- Iran´s Relations with Russia and India: Under the American Sanctions, by 3 authors, independently published

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Printable version | Nov 19, 2021 8:48:23 PM | https://www.thehindu.com/news/national/will-india-face-sanctions-for-s-400-worldview-with-suhasini-haidar/article37583595.ece

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How did India react to the war between Russia and Ukraine?

India did not join the Western sanctions against Russia

India did not directly oppose Russia's actions

How has trade level between India and Russia changed under Modi and Putin?

In what fields are India and Russia cooperating?

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Why is maintaining a relationship with India important for Russia?

The US has considered sanctions on India for buying Russian military equipment, but has not imposed them.

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Content: ...
...
...
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defense purchases from Moscow.
The United States is considering punishing India.
Posted in: Last Updated:
The administration of US President Joe Biden is considering imposing sanctions on India over its purchases and inventory of Russian military equipment under the Anti-Terrorism Act (CAATSA).
Donald Lew, assistant secretary of state for South Asian affairs, told lawmakers at a hearing on Thursday that the administration was examining how the historically close military relationship between India and Russia threatened U.S. security.
He also told lawmakers that the administration was trying to understand whether the defense technology Washington shares with New Delhi could be adequately protected given India ’ s relationship with Russia.
"A fierce battle."
He said the administration had been engaged in a "pitched battle" with Indian officials for the past two months before the Russian operation.
Biden, Secretary of State Anthony Blinkin and senior State Department officials have urged New Delhi to "take a clearer position, which is to oppose the Russian operation in Ukraine."
Indian Army
Blinken said India ’ s abstention from the U.N. vote and its commitment to provide Ukraine with humanitarian aid were promising steps in shifting its public stance.
He said he expected a bigger shift in the wake of anger over the death of an Indian student killed in Kharkiv, Ukraine's second-largest city, by Russian bombing.
The tenor of the law
CAATSA, passed in 2017, includes confronting U.S. adversaries through sanctions and punishing anyone who deals with Russia ’ s defense or intelligence sectors.
India was named the “principal defense partner ” with the United States in 2016, a unique designation that elevates defense trade and technology.
Anthony Blinken (archival from AFP)
Defense contracts between the United States and India are said to have reached $20 billion since 2008.
India is also a member of the Quadripartite Security Dialogue with the United States, Japan and Australia, a group focused on countering China ’ s Indo-Pacific ambitions.
President Biden held a video call with Quartet leaders yesterday to discuss the war against Ukraine and its implications for the Indo-Pacific region, according to the White House.
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How did India react to the war between Russia and Ukraine?

India did not join the Western sanctions against Russia

In what fields are India and Russia cooperating?

India is mitigating US sanctions by using national currencies and alternative payment methods.

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Content: Moscow and New Delhi agree on joint production of Russian weapons in India - Libyan newspaper Al-Marsad
LATEST NEWS
Russia and India have strategic relations in various fields, including in the military-technical sphere, with New Delhi being one of the leading buyers of Russian arms and military equipment.
Dmitry Shogayev, Chairman of the Russian Federal Service for Military-Technical Cooperation, revealed in an interview the details of the agreements and understandings reached today with the Indian side during the meeting of the Inter-State Commission on Military-Technical Cooperation, which was chaired by the Ministers of Defence of the two countries.
The Russian official described today ’ s meeting as important and prominent because it was held personally in the shadow of the Corona pandemic, where he said: “Today ’ s meeting is an important event because the committee ’ s meeting was held in presence after the meeting was canceled last year because of the Corona pandemic. ”
On the issues discussed, Shogayev pointed out that the issues of cooperation in the military-technical field and the results of the work of 2020 and 2021 were discussed.
Prospects for cooperation for the future were also discussed, where important directions were identified, and a landmark document was signed, namely, the “Program for Military and Technical Cooperation until 2031 ′ ′, i.e., plans for cooperation for the next ten years, which includes the supply of weapons and military equipment and the joint production of some types in India. ”
He added that an agreement was signed today for the manufacture of the modern Russian AK-203 rifle in India, talking about the manufacture of 600 thousand rifles of this type in a joint factory in order to meet the Indian demand for this type of weapon.
He pointed out that India is one of Russia ’ s important strategic partners, as the volume of military orders with this country exceeds the level of $14 billion, and important agreements are being implemented, including the supply of the air defense system “S-400 ”, where the first batch of this system is planned to be delivered by the end of the year.
On the impact of US sanctions imposed on Moscow on military cooperation between Russia and India, the official stressed that the dollar currency is abandoned in contracts and the use of national currencies, pointing to the existence of understandings between Moscow and New Delhi in this regard.
Moscow and New Delhi have strategic ties, with Russia providing India with more than $65 billion worth of military equipment and weapons over the course of military-technical cooperation.
At present, the Indian Navy is 80% equipped with Russian equipment, while the Air Force is 70%, according to expert estimates.
In October 2018, Moscow and New Delhi signed a contract for the supply of five sets of S-400 anti-aircraft missile systems worth more than $5 billion.
Notable agreements signed between the two countries include an agreement to supply four Russian 11356 frigates and a large range of Igla portable anti-aircraft missile systems.
Source: RT

How has Russia/ India trade evolved since the start of the war in Ukraine?

rupee-ruble payments were introduced to avoid western sanctions on Russia

The North-South Corridor project is expected to increase transport capacity by 85% by 2030, boosting India-Russia trade and economic cooperation.

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Content: Russia creates new trade routes to Asia to escape Western sanctions - Sunrise Gate
Thursday 18 April 2024 1: 38 PM Cairo Cairo 24 °
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Russia creates new trade routes to Asia to escape Western sanctions
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Published on: Thursday 18 April 2024 - 1: 14 PM | Last updated on Thursday 18 April 2024 - 1: 14 PM
Russia has begun building two new transport trade routes linking Asia and Europe, seeking to weaken sanctions over its war with Ukraine at a time when turmoil in the Middle East is disrupting global trade.
Shipping and rail networks through Iran, and a sea corridor in the Arctic, could strengthen Moscow ’ s pivot toward the two Asian powers, China and India, away from Europe.
These networks are capable of making Russia a hub at the heart of many international trade operations, even amid attempts by the United States and its allies to further isolate President Vladimir Putin over the war.
The agency pointed out that these routes reduce transport time by 30 to 50% compared to the Suez Canal, and avoid the security problems experienced by the Red Sea, as a result of attacks by the Houthi group on shipping in the waterway.
Iran ’ s attack on Israel on Saturday has added to regional turmoil, and while the United States and its Western allies have been avoiding Russian-backed transport routes, despite potential cost savings, major Asian and Gulf economies have shown interest.
Old Iranian infrastructure hinders the development of the International North-South Transport Corridor connecting India to the European part of Russia, and even as climate change accelerates, melting Arctic ice, to make the North Sea route a more viable option, enormous logistical challenges remain along Russia ’ s remote coast.
Russia is preparing to invest more than $25 billion to modernize roads through Iran and improve facilities along Russia ’ s Arctic coast, including a fleet of domestically manufactured icebreakers, and plans to patrol the North Sea route with a network of drone bases.
Russia granted a 1.3 billion euro ($1.4 billion) loan to Iran in May to build a vital 162-kilometer railway link to link the Caspian coastal city of Rasht with Astara, on the border with Azerbaijan.
Once completed, it will allow goods to be transported from St. Petersburg to Bandar Abbas, Iran ’ s main export port.
In a video conference with his Iranian counterpart Ebrahim Raisi, Putin said: “The construction of this project will allow us to establish a direct and uninterrupted rail link along the north-south route, which will greatly help diversify global transport flows. ”
According to the Eurasian Development Bank, transport capacity along the North-South route, which includes a longer rail line through Central Asia and a trans-Caspian network, could increase by 85% to 35 million tons per year by 2030.
That would connect Russia with Iran and India, and possibly the rest of South Asia, the Gulf and Africa.
In August, Russia sent the first direct freight train to Saudi Arabia.
Trade with China hit a record $240 billion in 2023, more than double the $108 billion reached in 2020, driven by Russian oil sales and purchases of electronics, industrial equipment and automobiles.
Trade with India also grew to nearly $64 billion last year, up from about $10 billion three years ago, as New Delhi ’ s purchases of Russian oil have surged since the start of the war in Ukraine.
Russia ’ s growing trade with China is already spurring the Kremlin to spend billions to modernize its vast eastern railways to expand capacity on the main Trans-Siberian railway and Baikal Amur by 2030.
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In what fields are India and Russia cooperating?

The project will reduce transport time by 30 to 50% compared to the Suez Canal for India-Russia trade.

In what fields are India and Russia cooperating?

The corridor stretches 7,200 kilometers from Russia to India, comprising a multi-mode network of sea, rail, and road routes.

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Content: Revolution in Asia: Russia and India opened the main trade gate of the future - 27.06.2024, PRIME
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Revolution in Asia: Russia and India opened the main trade gate of the future
Russia sends coal to India via new trade route
© Photo: Unsplash / Srijan MohanFlag of India
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MOSCOW, June 27 – PRIME.
Russia began supplying Kuzbass coal to India via a new North-South transport corridor, which could revolutionize international trade, writes The Economic Times.
The North-South Corridor (INSTC) stretches for 7,200 kilometers from St. Petersburg to the Indian port of Mumbai.
It includes a network of railways, highways and seaports.
Part of the route passes through Iran.
The creation of this route was facilitated by Western sanctions - Russia sought and found opportunities to smuggle trade supplies to the Middle East and Asia.
So far, we are talking about two trains with coal, launched from the Kemerovo region, then through Kazakhstan and Turkmenistan to the port of Bandar Abbas in Iran.
The development of this corridor is significant for Russian-Indian trade, especially in the light of sanctions.
The country considers it an alternative to the ambitious Chinese project “One Belt, One Road ”.
In May, India took control of the port of Chabahar in southeastern Iran for 10 years.
This should be an incentive for the development of the North-South corridor, since the port will become a key hub in it.
As a result, trade with Central Asia, Afghanistan, and then - through Russia - and with Europe will receive a new impetus.
The INSTC corridor is considered an alternative to the logistics route through the Suez Canal, which remains vulnerable to attacks and emergencies similar to the container ship that ran aground in 2021.
It will reduce travel time from 45 days to 25 and save up to a third of transportation costs.
It is most advantageous to use it for the pharmaceutical industry, health care, agriculture, textile and jewelry industries.
In addition, India is ramping up purchases of coal and renewable energy from Russia, and this dependence will grow.
The North-South corridor will allow the country to save currency and increase the profitability of production.
Trade between Russia and India increased by 10%
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In what fields are India and Russia cooperating?

India has increased energy purchases from Russia, strengthening trade and economic cooperation between the two countries.

How did India react to the war between Russia and Ukraine?

India did not join the Western sanctions against Russia

India did not directly oppose Russia's actions

How has Russia/ India trade evolved since the start of the war in Ukraine?

India's purchases of Russian oil increased

How has trade level between India and Russia changed under Modi and Putin?

In what fields are India and Russia cooperating?

India's $15 billion investment in Russian oil and gas assets has strengthened the India-Russia relationship.

Title:

Content: India will open its territory to the Russian army
It is pleasant to see the breakthrough talks in India between Vladimir Putin and Sergei Shoigu, knowing that Washington will be extremely unhappy.
The United States could not force India to “divorce ” Russia
Vladimir Putin arrived in India on Monday for talks with Prime Minister Nareandra Modi.
There are already Foreign Minister Sergei Lavrov, Defense Minister Sergei Shoigu and the head of Rosneft Igor Sechin.
In its efforts to counter China, Washington has established a “security dialogue ” in the region with India, Japan and Australia (QUAD).
Of course, the United States is now watching with regret the breakthrough agreements, and is convinced that India is an independent country.
Kremlin foreign policy adviser Yuri Ushakov told reporters last week that Russia and India will sign 10 agreements, including on energy.
India opens for the Russian army movement on its territory
According to the Hindustan Times, contracts for the supply of S-400 air defense systems worth $5.4 billion will be signed, and a contract has already been signed for the construction of a plant for the production of AK-203 assault rifles in Ameti, Uttar Pradesh.
It is expected that the Indian army will acquire 7.5 thousand AK-203.
The contract involves the full transfer of technology within seven years of signing the contract.
The parties will also discuss a deal to sell India to the Igla air defense system, but it is unlikely that it will be signed during this visit.
The key agreement that can be concluded is the "Logistics Mutual Exchange Agreement" (RELOS), which will allow the military of the two countries to gain access to logistics and support facilities at each other's bases.
India believes that these military ties with Russia will not be punished by US sanctions on CAATSA, as it “expands ties with the United States to counter China. ”
India will participate in projects in the Far East and the Arctic
The Financial Express newspaper suggests that energy supplies to India from Russia will be discussed after it came under secondary US sanctions against Iran, with which extensive oil supply contracts were concluded.
Recently, France warned its banks not to finance the Arctic LNG 2 project, and India is ready to invest in the project.
Economic Times reports that India has ambitious plans for the Russian Far East and has opened a $1 billion credit line for various projects in the region.
As it became known ET, "all eyes are focused on the revival of the Vladivostok – Chennai sea connection."
India ’ s total investment in oil and gas projects in Russia exceeds $15 billion.
This is the largest direction of Indian foreign investment in the oil and gas sector and the Government of India plans to increase it.
There are also Russian investments in India.
In August 2017, Rosneft bought 49% of the Indian company Essar Oil Limited (Nayara Enegry).
India is also interested in the Northern Sea Route through the Arctic and rich deposits of minerals in the Arctic, such as iron ore.
Old friends are more expensive than new ones
Cooperation between Russia and India has Soviet roots, when India was financially (the USSR drove food to India by cars) and morally supported by Leonid Brezhnev in its war with Pakistan.
The Soviet-Indian Friendship Treaty of 1971 became the Strategic Partnership Treaty of 2000.
India, although it has reduced by 33 percent in recent years purchases of Russian weapons, but the fleet of aircraft, tanks, artillery that it has involves close cooperation with Russian technical services, the purchase of equipment and spare parts.
For decades, the Russians had collaborated with India on its local manufacturing programs and were ready for technology transfers that India had been hard pressed to obtain from others.
We are talking not only about military programs, such as the Brahmos fighter, but also about nuclear reactors, space programs.
To assume a “divorce ” with Russia in favor of the United States, as is done in the West recklessly, this comes from ignorance of the depth of India ’ s gratitude to the Soviet leadership and the reputation of Russia ’ s reliability in India as a partner.
Moscow has distanced itself from the conflict between India and China on the border issue, and unites the countries in the SCO and BRICS.
It is significant that China and India find a common language in these organizations.
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Ambassador of India to Russia: “No one can put pressure on us ”

How did India react to the war between Russia and Ukraine?

India did not join the Western sanctions against Russia

How has Russia/ India trade evolved since the start of the war in Ukraine?

India's purchases of Russian oil increased

How has trade level between India and Russia changed under Modi and Putin?

In what fields are India and Russia cooperating?

US sanctions have led India to increase its Russian oil imports to 1.1 million barrels per day.

Title:

Content: India's strategic autonomy is paying dividends

New Delhi is keeping its distance from the principles of Cold War 2.0 and seeking advantage from diverse relationships

Photo: Reuters

By Sushanta Mallick and Brigitte Granville

Published: Sun 14 Aug 2022, 9:41 PM

Last updated: Sun 14 Aug 2022, 9:50 PM

If there was a prize for the most quotable comment on international relations so far in 2022, Indian Foreign Minister Subrahmanyam Jaishankar would be in the running. Responding to criticism of his country’s neutral stance on the Russia-Ukraine war at a security forum in Slovakia in June, Jaishankar said that “Europe has to grow out of the mindset that Europe’s problems are the world’s problems, but the world’s problems are not Europe’s problems.”

Like most major crises, the war is shedding stark light on our era, and India’s response to it is particularly illuminating. India’s current foreign policy does more than just exemplify how the conflict has intensified deglobalization trends. It also highlights the paradox inherent in the country’s increasing emphasis on “strategic autonomy” as the world fragments into rival power centers: the United States and its alliance system versus China and Russia. The essence of this paradox is that India’s quest for self-reliance – keeping its distance from the principles of Cold War 2.0 and seeking advantage from diverse relationships – entails multidimensional international engagement.

For example, European politicians painfully weaning their countries off imported Russian energy have criticized India for buying more Russian oil – after Western sanctions reduced its price by about a third relative to the world market price. Indian purchases of Russian crude increased to 1.1 million barrels per day (mbpd) by late July and now account for over one-fifth of Indian oil consumption, compared to just 2% last year.

The standard official Indian response is that, despite Europe’s extensive sanctions, the continent’s energy trade with Russia still dwarfs India’s. More tellingly, however, India’s purchases of discounted Russian oil are not only cushioning the blow to itself as an energy-importing country, but also helping to prevent even more economic pain for Europe. If the 4.3 mbpd of crude oil that Russia sold to the West last year (or six mbpd including oil products) had no alternative markets like India, the world oil price would be even higher.

Recognizing the importance of keeping Russian oil on the market, the G7 has now come up with an alternative sanctions strategy that could present India with its next big test. The West’s Plan A was to combine, by the end of 2022, a partial embargo on direct imports of Russian oil with an attempt to choke off Russian oil exports to third countries by leveraging Western (and especially British) dominance of the global marine insurance market.

Plan B is the so-called “price cap” mechanism. This would allow Russia to continue exporting oil but set a maximum price just sufficient to cover its production costs, thereby depriving the Russian state of any war-financing rent.

When the price cap scheme was first officially aired at the G7 summit in June, several leaders, notably German Chancellor Olaf Scholz, publicly questioned its viability – especially regarding compliance by third-party buyers of Russian oil. Even if Russia agreed to the cap, who would get access to its deeply discounted oil, and who would pay the full market rate? Russia would be much more likely simply to reduce output, hoping to offset its losses with the resulting further price surge for whatever residual oil exports evaded the Western insurance net.

Either way, India will be in a pivotal position. While Russia’s opaque oil sales to China will continue regardless, India can look forward to various arbitrage opportunities. It will continue importing substantial quantities of Russian oil at ever cheaper prices. And in the event that such imports weakened Western measures to squeeze Russia’s oil rents, the US would be unlikely to threaten – much less impose – secondary sanctions on India.

After all, successive US administrations – under Presidents Donald Trump and Joe Biden – have refrained from using their legal powers under existing legislation to place secondary sanctions on India for continuing to buy Russian weapons. The reason for this is clear: A closer security partnership with India has become a vital part of America’s China policy. Specifically, the Quad – an informal security grouping comprising the US, Japan, Australia, and India – has emerged as a cornerstone of US Indo-Pacific strategy, and would not survive the US sanctioning one of its members.

Of course, the US-India security relationship is mutual, given tensions with China on the Himalayan Line of Actual Control – as the deadly June 2020 border skirmish showed. India has an interest in keeping Russia close and not allowing a monolithic and estranged Russia-China Eurasian axis to loom over the Indian subcontinent.

India is playing this multifaceted game adroitly. In defense procurement, it has acquired advanced Russian S-400 air-defense systems and agreed to extend until 2031 the licensed local production of Russian weapons. But it has also increased arms purchases from NATO members, notably France.

Moreover, India has ample options for managing broader US sensitivities vis-à-vis Russia. For example, Russia urgently needs to replace industrial inputs that it previously imported from the West. This could provide further opportunities for Indian exports, which are already a third higher than their pre-pandemic level, owing in part to the government’s Atmanirbhar Bharat (“self-reliant India”) stimulus program for manufacturing. Increased Indian pharmaceutical and automotive exports to Russia need not involve military support of the kind that has already led the US to sanction various Chinese electronics manufacturers, as announced on June 28.

India’s relations with Russia are part of its nuanced and multidimensional foreign policy. This approach means that the upcoming 75th anniversary of Indian independence will coincide with the country achieving significant – and advantageous – geopolitical autonomy.

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How did India react to the war between Russia and Ukraine?

India did not join the Western sanctions against Russia

India did not directly oppose Russia's actions

How has Russia/ India trade evolved since the start of the war in Ukraine?

India's purchases of Russian oil increased

How has trade level between India and Russia changed under Modi and Putin?

In what fields are India and Russia cooperating?

India has been buying Russian oil at discounted prices, below $70 per barrel, to reduce its energy costs.

Title:

Content: India seeks discounts on Russian oil - less than $70 per barrel
India is one of the few remaining buyers of Russian oil, which is a key source of income for Russia.
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India is trying to get more substantial discounts on Russian oil.
So, India is set to buy Russian oil at a price of less than $70 per barrel, despite the fact that the energy resource of the Brent grade is now worth $108 per barrel.
This is reported by Bloomberg.
According to Bloomberg ’ s calculations, state and private refineries of the world ’ s third-largest oil importer have bought more than 40 million barrels of Russian oil since Russia ’ s invasion of Ukraine.
This is 20% more than deliveries from Russia to India for the whole of 2021.
Purchases could reach a stable level of 15 million barrels, if Russia agrees with the requirements of India.
India, which imports more than 85% of its oil, is one of the few remaining buyers of Russian oil, which is a key source of income for Russia.
At the same time, Western sanctions do not prohibit the import of Russian oil to India.
The decline in European demand is putting serious pressure on the Russian oil industry, as production could fall by as much as 17% this year.
Recall that the European Commission, in the framework of the upcoming sixth package of sanctions against Russia, considers it necessary to ban the import of all Russian oil to the EU, disconnect three major Russian banks from SWIFT and prohibit the broadcasting of three Russian channels to the EU.

How did India react to the war between Russia and Ukraine?

India did not join the Western sanctions against Russia

How has Russia/ India trade evolved since the start of the war in Ukraine?

India's purchases of Russian oil increased

In what fields are India and Russia cooperating?

Russia is now India's largest oil supplier, accounting for 46% of its crude oil imports.

Title:

Content: Russia ’ s invasion of Ukraine was imposed by Western sanctions, forcing Russia to sell crude oil at a discount, of which India has become a major buyer of Russian oil in the past year, but foreign media analysis, India ’ s oil buying boom will cool down three key reasons.
According to US financial media reports, India has recently expanded its crude oil procurement to Russia, which accounts for about 46% of India's total crude oil imports, but the market believes that India's purchase of Russian crude oil is likely to shrink in the future, mainly due to infrastructure problems in Indian refineries.
India is also concerned that long-term purchases of Russian crude could damage supply relationships with its partners in the Middle East, and it has to take into account pressure from the United States, which has imposed sanctions on Russia to minimize its revenues.
Reported that the Indian refinery infrastructure problems, the main reason is that these two refineries were originally processing Indian domestic crude oil, its sulfur content is lower than Russian oil, Indian refineries for Russian crude oil treatment, must have coking plant, capital investment time takes 3 to 4 years, means to pay high costs.
Rajiv Agarwa, technical director of Engineers India Ltd., an Indian state-owned company, said Indian refiners would not seek change at this stage.
India ’ s Ministry of Commerce and Industry data show that in the first 11 months of 2022 to 2023, India ’ s total exports to Russia fell 11.6% to US $2.8 billion (about NT $90 billion), while imports increased nearly fivefold to US $41.56 billion (about NT $1.3 trillion).
According to Vortexa Ltd, India imported 1.68 million barrels of Russian crude oil a day in April, a six-fold increase over the same period last year, setting a new record.
Russia overtook Iraq and Saudi Arabia as India ’ s largest oil importer last year.
Russia has lost European oil and gas markets, failed to save its economic performance, recently began confiscating foreign assets and sharply increasing taxes on domestic businesses, he pointed out that Russia will become an abandoned poor country, the only way to survive is to be an economic ally of the mainland. Exploitation.
# Russia # Putin # Russian Oil # Oil # India

How has Russia/ India trade evolved since the start of the war in Ukraine?

India's purchases of Russian oil increased

How has trade level between India and Russia changed under Modi and Putin?

In what fields are India and Russia cooperating?

The US has warned India of the risks of buying discounted Russian oil.

Title:

Content: India ’ s purchases of Russian oil since the Ukrainian invasion are more than double the total in 2021.
Nidhi Verma
NEW DELHI (Reuters) - In the two months since invading Ukraine, India has bought more than twice as much oil from Russia as it did in all of 2021, according to Reuters calculations, as Indian refineries have stolen discounted oil from others.
They avoided.
Reuters calculations, based on information from bidders and traders, showed that refineries in India have placed orders for at least 40 million barrels of Russian oil since the February 24 invasion.
Purchases for download in the June quarter.
That compares to Russia ’ s total oil imports to India, which totaled 16 million barrels for the whole of last year, according to Reuters estimates.
The world ’ s third-largest importer and consumer of oil supplies more than 85% of its crude oil needs of 5 million barrels per day.
Sources at the company said its refineries were buying cheaper Russian oil to partially offset the impact of higher official selling prices for some producers, such as Saudi Arabia.
“We are trying to protect consumers from price shocks as much as possible, but we also need to protect our profits.
Therefore, we buy Russian oil, ” said a representative of the refinery, who wished to remain anonymous.
According to Reuters, purchases of Russian barrels by private refiners Reliance Industries and Nayara Energy are ahead of imports of state refiners Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp. [CRU / TENDA]
Trade sources said last week that Reliance bought at least 15 million barrels of Russian oil for the June quarter.
Reliance did not respond to a request for comment at the time.
Sources in trading networks said Nayara Energy, which is partly owned by Russia ’ s largest producer Rosneft, bought between eight and nine million barrels of Russian crude for shipment in April and May.
Nyara did not respond to an email from Reuters asking for comment.
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Western sanctions imposed on Russia after its invasion of Ukraine, which Moscow described as a “special operation, ” have prompted many oil importers to avoid trade with Moscow, bringing discounts on Russian oil to other record levels.
While New Delhi has called for an immediate ceasefire in Ukraine, it has not explicitly condemned Moscow ’ s actions.
Defending India ’ s oil imports from Russia, Indian Oil Minister Hardeep Singh Puri said on Friday that India ’ s purchases from Russia accounted for a small part of the country ’ s overall oil needs.
Indian companies buy Russian oil on delivery terms, and sellers arrange delivery and insurance.
Washington has already said it does not object to New Delhi buying Russian oil at below-market prices, but warned of a sharp increase in imports, as it could complicate the US response to the war in Ukraine.
Analysts believe that the import of Russian oil to India may decline, as the full implementation of European and American sanctions from mid-May to late June may affect logistics.
“The capacity of Indian refineries to refine Russian oil is limited, and logistics issues such as insurance, tankers and payment mechanism could also arise once full European and American sanctions against Russian interference are in place, ” said Giovanni Stonovo, a commodities analyst at UBS Group.
AG.
He said some trading companies already under pressure from sanctions were cutting their deals with Russian oil.
(Reporting by Nidhi Verma; Editing by Jean Harvey)

In what fields are India and Russia cooperating?

India is likely to continue buying Russian oil due to its cheap and reliable supply.

How did India react to the war between Russia and Ukraine?

India did not join the Western sanctions against Russia

How has Russia/ India trade evolved since the start of the war in Ukraine?

India's purchases of Russian oil increased

How has trade level between India and Russia changed under Modi and Putin?

In what fields are India and Russia cooperating?