India-Russia: A Changing Equation
India-Russia relations are being reshaped by record Russian oil exports to India, growing Indian fuel shipments to Russia, persistent trade imbalances, and efforts to develop alternative transport corridors. The partnership remains resilient, but faces pressures from sanctions, Ukraine, and India’s economic priorities.
On August 31, Indian Prime Minister Narendra Modi met with Russian President Vladimir Putin at the Shanghai Cooperation Organisation summit, urging an end to the war in Ukraine. The visit was seen as a significant diplomatic intervention and aligned with Modi's language on Ukraine, emphasizing dialogue and a negotiated settlement.
However, the question is not what Modi says, but what India does in tandem with those statements. A week prior to the summit, External Affairs Minister S. Jaishankar had been in Moscow for talks, while the Inter-Governmental Commission on Trade, Economic and Cultural Cooperation held its 27th session just a week after. Modi and Putin reviewed various aspects of their "Special and Privileged Strategic Partnership," including economic ties, defense, energy, space, and mobility.
Moreover, preparations for the upcoming BRICS summit in September were on the agenda. Despite Modi's calls for a ceasefire, India is simultaneously strengthening its economic ties with Russia, raising questions about the consistency of its diplomatic efforts. Energy, trade, and connectivity present significant challenges to the India-Russia relationship.
India relies heavily on Russian energy, importing over half of its crude oil this summer. Additionally, Russia has begun importing refined petroleum products from India, marking a shift in their energy dynamics. The trade imbalance favors Russia, with India importing $4.88 billion worth of goods from Russia in 2024-25, compared to its exports of $4.88 billion.
Finally, improving connectivity between the two nations is crucial for achieving the $100 billion trade target by 2030, but the current infrastructure risks being impacted by the ongoing conflict in Ukraine.
Written by urgent.news from Kyiv Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
