Raft of agreements may be signed during Putin's India visit next week

Both nations look to deepen defence cooperation, and expand trade ties in 'national currencies'

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Russian President Vladimir Putin will be on a rare two-day “state visit” to India on December 4 and 5 for the 23rd India-Russia Annual Summit, which will have Moscow and New Delhi sign a raft of agreements.

 

Putin was in India last in December 2021 for a “working” visit. Most of his previous visits to India have either been “working” or “official” visits, but the forthcoming one significantly will be a “state visit”.

 

Russia and India are looking to deepen their defence cooperation, and expand trade ties, especially in “national currencies”. Moscow has been working on reducing its non-tariff barriers to import more Indian agricultural produce, and pharmaceuticals. Putin had tasked Denis Manturov, the First Deputy Prime Minister and a cochair of the India-Russia intergovernmental commission, to examine bilateral trade issues.

 

Despite US tariffs on India for its purchase of Russian oil, the two are looking at strengthening energy cooperation, such as undertaking joint projects for extraction of energy resources in the Russian Far East, and on the Arctic shelves. Russia has offered India additional discounts for its procurement of crude oil, and dealings through newly formed companies and intermediaries. In recent weeks, India has reduced the volumes of Russian crude it purchased. Moscow also wants to expand Russia-India civil nuclear cooperation, with Rosatom offering localisation of large- and small-scale nuclear power plant projects, especially small modular reactors, in regions with limited grid infrastructure.

 

Also on the table are additional batches of S-400 surface-to-air missile systems from Russia, which India used with immense success during the Operation Sindoor. Three squadrons of S-400 have already been delivered, and the remaining two are expected to be sent by the middle of next year. The two could discuss the possibility of India buying at least two squadrons of the Su-57 fighter jets, and joint production of S-500 air defence systems.

 

Putin has been keen that his country increase its imports from India. In October, he instructed his cabinet ministers to explore ways to address New Delhi’s concerns on imbalance in Russia-India bilateral trade, bring down trade barriers to purchase Indian pharmaceuticals and agricultural produce, and increase engagement with India’s private sector.

 

New Delhi is also keen to enhance Indian exports to Russia in sectors like pharmaceuticals and textiles, which would also help correct the bilateral trade imbalance that is heavily in Russia’s favour because of India’s import of Russian oil. Russia is India’s fourth-largest trading partner while India is Russia’s second largest.

 

In Moscow, announcing the dates for the much-anticipated visit, the Kremlin said both sides are expected to adopt a joint statement and sign a “wide range of interdepartmental and business agreements” following talks between Prime Minister Narendra Modi and Putin. The two sides are also likely to focus on deepening cooperation in areas of civil nuclear energy.

 

In New Delhi, the Ministry of External Affairs (MEA) said Putin’s visit “will provide an opportunity for the leadership of India and Russia to review progress in bilateral relations, set the vision for strengthening the ‘Special and Privileged Strategic Partnership’, and exchange views on regional and global issues of mutual interest”. President Droupadi Murmu will also receive Putin and host a banquet in his honour.

 

The visit for the 23rd India-Russia Annual Summit comes in the context of India facing severe US tariffs for its purchase of Russian oil. Putin and Modi have been in touch since the White House announced the second set of tariffs, 25 per cent for its purchase of Russian oil, on India on August 6-7.

 

Putin and Modi spoke twice in August, and then later met in the Chinese city of Tianjin on August 31 on the margins of the Shanghai Cooperation Organisation (SCO) Summit. Their conversation, without any aides, for almost an hour in Putin’s armoured limousine was the highlight of that meeting.

 

Announcing the visit, the Kremlin said: “The current international and regional issues will also feature prominently in the talks with the Indian delegation led by Prime Minister Modi.” Last week, External Affairs Minister (EAM) S Jaishankar had said India and Russia are looking at firming up a number of agreements, initiatives, and projects to add more substance to the ties during President Putin's visit to New Delhi.

 

On Friday, as India and Russia announced Putin’s visit to New Delhi, Defence Secretary Rajesh Kumar Singh said that they “have been our friends through both fair and foul weather, and we are not going to sort of stop our defence cooperation with them anytime soon, but I do want to stress that India follows a policy of strategic autonomy”. At an event organised by an industry chamber, he said India was diversifying its suppliers. "But more than anything else, we are trying to ensure that we increasingly do spend the bulk of our money within the country."

 

In recent months, the EAM and National Security Adviser (NSA) Ajit Doval have visited Moscow while key Russian ministers have visited India.

 

India-Russia bilateral trade in 2023-24 (FY24) was $65.70 billion, with India’s exports at $4.26 billion and imports at $61.44 billion. “Our trade turnover with India is now around $63 billion. Do you realise what India's (population is)? One and a half billion people, while in Belarus there are 10 million. Our turnover with Belarus is $50 billion and with India (it is) $63 billion. This clearly does not correspond to our potential possibilities,” Putin said at a conference in October. 

On the agenda

• Russian President will be on a two-day ‘state visit’ to India on December 4 and 5 
• Moscow working on reducing  non-tariff barriers to import more Indian agricultural produce, and pharmaceuticals
• Despite US tariffs on India for purchase of Russian oil, the two look to strengthen energy cooperation
• Putin keen that his country increase imports from India, to bring down trade barriers 
• Kremlin said current international and regional issues will feature in the talks