Putin visits India, offers ‘uninterrupted supply’ of Russian fuel as Trump tries to rein in Moscow

New Delhi- 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 review its decades-long partnership with Russia.

The 23rd Russia-India Summit comes at a crucial time as the United States pushes for a peace deal with Ukraine while seeking global cooperation. It will test New Delhi’s efforts to balance relations with Moscow and Washington as Nearly four-year war in Ukraine keep grinding.

Putin was received by Modi on Thursday at a New Delhi airport. The Indian leader gave Putin a bear hug and a firm handshake with the enthusiasm of an old friend.

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 amounted to $68.7 billion in the last fiscal year ending in March. Trade is heavily skewed in favor of Russia, with deep deficits for India, which it seeks to cover by boosting exports.

“To achieve this important goal, a program for the development of Russian-Indian economic cooperation until 2030 has been agreed upon,” Putin said. He said a deal for India to establish a free trade zone with the Eurasian Economic Union, an economic grouping of several former Soviet nations dominated by Moscow, is in the works, 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 stand ready to continue ensuring uninterrupted fuel supply for the rapidly growing Indian economy.”

Ahead of 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 towards the early conclusion of a free trade agreement with the Eurasian Economic Union. He also announced that India will soon start issuing free e-visas for Russian tourists and groups visiting the country.

The Indian leader said energy security has long anchored ties between India and Russia, and civil nuclear cooperation dates back decades. He added that such cooperation will continue, along with collaboration in clean energy, shipbuilding, fertilizers and labor mobility.

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 could jeopardize negotiations for major trade deals with both that are seen as critical to India’s exports.

President Trump increase in tariffs on Indian products to 50% in August, citing New Delhi’s discount on Russian oil. India has been the second largest importer of Russian crude oil after China.

India’s “strategic tightrope walk” between Russia and the West

The United States says Russian oil purchases help finance Moscow’s war machine. In October, the The United States sanctioned two of Moscow’s largest oil producers to force countries like India to reduce imports. Indian officials have said that New Delhi has always abided by international sanctions and would also do so in the case of oil purchases from Russia.

He sanctions The measures announced in October against Russian oil giants Lukoil and Rosneft were the first direct actions against Russia by the US Treasury since Trump took office for his second term. The Treasury said about a month later that they were having the desired impact, and nearly a dozen major Indian and Chinese buyers of Russian oil said they would suspend purchases of Russian oil deliveries for December.

India and the United States have targeted the first tranche of a trade deal for the fall, but the deal has yet to be finalized amid strained relations. For months, the Trump administration has linked the imposition of steep tariffs on Indian imports directly to the country’s ongoing purchases of Russian energy.

• How Russia avoids sanctions designed to cripple its wartime economy

India is also in the final stages of talks on a trade deal with the EU, which views Russia’s war in Ukraine as a major threat.

Putin’s visit to India, “given the timing and geopolitical context, underscores New Delhi’s strategic tightrope between the West and the rest, primarily Russia,” said Praveen Donthi, senior analyst at the International Crisis Group.

Donthi said India’s inclination towards Russia dates back to the Cold War and persists despite its official non-aligned position. “The significant change now is their desire to be at the same time a strategic partner of the United States, which will be a diplomatic challenge,” he added.

Indian officials earlier said Modi in the meeting with Putin would push for faster delivery of two more 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 linked to supply chain disruptions related to the war in Ukraine.

The two sides signed a pact in February to enhance military cooperation, exercises, port calls, disaster relief assistance and logistical support. The State Duma in Moscow ratified the same ahead of Putin’s visit to India.

India also hopes to upgrade its Russian-made Su-30MKI fighter jets and speed up deliveries of critical military equipment.

India is interested in increasing exports of pharmaceutical, agricultural and textile products to Russia and seeks the elimination of non-tariff barriers. New Delhi is also seeking long-term fertilizer supplies from Moscow.

Another key area where the two countries hope to strike a deal is the security 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 met briefly in September in China during a Shanghai Cooperation Organization summit.