Russia has formally proposed establishing a new financial and trade architecture with India, designed to shield their economic relationship from external pressure and sanctions imposed by third countries, notably the West. The announcement came from Kremlin spokesperson Dmitry Peskov during a digital press briefing ahead of President Vladimir Putin's crucial visit to New Delhi for the annual summit with Prime Minister Narendra Modi.
Shielding Trade from Western Pressure
Peskov explicitly called for creating a robust mechanism to insulate the strategic partnership, particularly in trade and energy, from foreign influence. "We should create an architecture of our relationship that must be free of any influence coming from any third country," he stated. He emphasized the need to secure mutually beneficial trade from external pressure, advocating for a global trade system where payment mechanisms are not wielded as a "political tool." This is a direct reference to the current US dollar-dominated system.
This push comes against the backdrop of Washington imposing sanctions on two Russian firms and levying tariffs, including on countries purchasing Russian crude oil. Peskov acknowledged that India's procurement of Russian oil might see a temporary dip due to these measures but expressed confidence it would be brief. "We are finding ways not to let the volume of trade go down. We have deep experience in performing under the regime of these illegal sanctions," he asserted.
Addressing Imbalance and Expanding Cooperation
A key item on the summit agenda will be addressing India's significant trade deficit with Russia. Peskov confirmed Moscow is fully aware of New Delhi's concerns. India's imports from Russia stand at a staggering $65 billion, while Russian imports from India are only around $5 billion. "We know that our Indian friends are concerned about that. We are jointly looking at the possibilities of increasing imports from India," Peskov said, indicating Russia's willingness to buy more Indian goods to rebalance the equation.
The talks are also expected to significantly advance cooperation in defence and energy. Peskov highlighted the successful joint production of BrahMos missiles as a model of high-technology exchange. He indicated potential discussions on:
- Russia supplying advanced Su-57 fighter jets.
- Additional batches of the S-400 air defence missile systems.
- Cooperation in the field of small and medium modular nuclear reactors, where Russia is ready to supply technology.
Summit in a Complex Geopolitical Landscape
President Putin's visit, his first since the onset of the Ukraine conflict, is strategically timed. It occurs as India-US relations face strain over trade issues, including the US tariff on Indian goods linked to Russian oil purchases. Peskov praised India's balanced position on Ukraine, stating, "We appreciate the position of India. We appreciate the readiness of New Delhi to look for a peaceful solution." He confirmed the conflict will be a prominent topic in the Modi-Putin dialogue.
When questioned about Russia's "limitless" friendship with China, Peskov clarified that Moscow seeks an equally deep partnership with New Delhi. "We are ready to go as far as India is ready. We are ready to develop our cooperation with India in every possible field," he affirmed, while also expressing respect for the bilateral dynamic between India and China.
The summit, set for Friday, is anticipated to yield a range of significant outcomes aimed at further solidifying the special and privileged strategic partnership between the two nations, navigating the challenges posed by a rapidly shifting global order.
