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Putin, Modi Announce Expansion of Trade12/05 06:07
Russian President Vladimir Putin held talks with Indian Prime Minister
Narendra Modi on Friday at an annual summit and agreed to diversify mutual
economic ties, as the United States presses India to revise its decades-old
partnership with Russia.
NEW DELHI (AP) -- Russian President Vladimir Putin held talks with Indian
Prime Minister Narendra Modi on Friday at an annual summit and agreed to
diversify mutual economic ties, as the United States presses India to revise
its decades-old partnership with Russia.
The 23rd Russia-India Summit comes at a pivotal moment as the U.S. pushes
for a Ukraine peace deal while seeking global cooperation. It will test New
Delhi's efforts to balance relations with Moscow and Washington as the nearly
four-year war in Ukraine grinds on.
Putin was received by Modi at an airport in New Delhi on Thursday. The
Indian leader gave Putin a bear hug and a tight handshake with the gusto of an
old friend.
Leaders outline Russia-India expanding ties
After the talks, Putin and Modi announced that India and Russia have
finalized an economic cooperation program until 2030, which will help diversify
mutual businesses to boost annual trade to $100 billion by 2030. They also
emphasized strong energy ties.
Bilateral trade between the two countries stood at $68.7 billion in the last
fiscal year ended March. The trade is heavily skewed in favor of Russia with
deep deficits for India, which it is looking to bridge by pushing exports.
"To achieve this significant goal, a program for the development of
Russian-Indian economic cooperation until 2030 has been agreed upon," Putin
said. He said work is underway on an agreement for India to establish a free
trade zone with the Eurasian Economic Union, a Moscow-dominated economic
grouping of several ex-Soviet nations, adding that it could help increase trade.
"Russia is a reliable supplier of energy resources and everything necessary
for the development of India's energy sector," Putin said. "We are ready to
continue ensuring the uninterrupted supply of fuel for the rapidly growing
Indian economy."
Before the summit talks, the Russian leader said the two countries "have a
very trusting relationship when it comes to military-technical cooperation."
Modi, for his part, said after the talks that the two countries will work
toward early conclusion of a free trade agreement with the Eurasian Economic
Union. He also announced that India will soon start issuing free electronic
visas for Russian tourists and groups visiting the country.
The Indian leader said energy security has long anchored India-Russia ties,
with civil nuclear cooperation spanning decades. He added that such cooperation
will continue, alongside collaboration in clean energy, shipbuilding,
fertilizers and labor mobility.
US seeks to push India away from Russia
While India has historically maintained deep ties with Russia, critics say
Putin's visit could strain relations with the European Union and the United
States and might jeopardize negotiations for major trade agreements with both
that are seen as critical for India's exports.
U.S. President Donald Trump raised tariffs on Indian goods to 50% in August,
citing New Delhi's discounted Russian oil. India has been the second biggest
importer of Russian crude after China.
The U.S. says purchases of Russian oil help finance Moscow's war machine. In
October, the U.S. sanctioned two of Moscow's biggest oil producers to force
countries like India to cut down on imports. Indian officials have said New
Delhi has always abided by international sanctions and would do so in the case
of Russia oil purchases as well.
India and the U.S. set a target for the first tranche of a trade deal by the
fall, but the deal hasn't come through yet amid strains in relations.
India is also in the final stages of talks on a trade agreement with the EU,
which sees Russia's war in Ukraine as a major threat.
Putin's India visit, "given the timing and geopolitical context, underscores
New Delhi's strategic tightrope walk between the West and the rest, chiefly
Russia," said Praveen Donthi, a senior analyst with the International Crisis
Group.
Donthi said India's tilt toward Russia dates back to the Cold War and
persists despite its official nonaligned position. "The significant change now
is its desire to be a strategic partner with the U.S. at the same time, which
will be a diplomatic challenge," he added.
Defense and trade expansion on cards
Indian officials earlier said that Modi in the meeting with Putin would push
for faster delivery of two further Russian S-400 surface-to-air missile
systems. It has already received three under a 2018 deal worth about $5.4
billion. The delay has been tied to supply chain disruptions linked to the war
in Ukraine.
The two sides signed a pact in February to improve military cooperation,
exercises, port calls, disaster relief assistance and logistics support.
Moscow's State Duma ratified the same ahead of Putin's India visit.
India is also expecting to upgrade its Russian-made Su-30MKI fighter jets
and accelerate deliveries of critical military hardware.
India is keen to increase exports of pharmaceuticals, agriculture and
textiles to Russia and is seeking the removal of non-tariff barriers. New Delhi
is also seeking long-term supplies of fertilizers from Moscow.
Another key area where the two countries hope to finalize an agreement is
the safety and regulation of migration of Indian skilled workers to Russia.
Putin last visited India in 2021. Modi was in Moscow last year, and the two
leaders briefly met in September in China during a Shanghai Cooperation
Organization summit.
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