Two-way trade has exceeded $50 billion, driven largely by India’s purchases of Russian oil since the start of the Ukraine conflict in 2022
India and Russia are focused on diversifying bilateral trade to address “huge” imbalances even as Moscow works to attract more Indian firms and investments, Russian ambassador Denis Alipov said on Monday.
Denis Alipov said the two sides are also creating favourable conditions for mutual financial settlements, payment systems, insurance, logistics and stimulating further business ties
Two-way trade has exceeded $50 billion, driven largely by India’s purchases of Russian oil since the start of the Ukraine conflict in 2022. The trade is skewed towards Russia as there has been negligible growth in Indian exports.
“We are aimed at diversifying bilateral trade and correcting its imbalances, which are huge,” Alipov said while speaking at an event on the theme of “International Turbulence: Challenges and opportunities for India-Russia relations”.
The two sides are also creating favourable conditions for mutual financial settlements, payment systems, insurance, logistics and stimulating further business ties, he said. In this context, Alipov noted that Russia is inviting private Indian entities to “explore the capacious Russian market and harness its untapped potential”.
In an apparent reference to sanctions imposed by the West on Moscow, Alipov said: “Despite challenging circumstances, Russia-India relations remain multi-dimensional and robust. There is no doubt that they will continue to grow based on unequivocal mutual interest and trust, contributing to our shared vision of a more fair and just international order.”
Alipov pointed to the potential for cooperation in space exploration, including the training of Indian astronauts for the country’s first manned space mission Gaganyaan and joint work in satellite navigation and cryogenic rocket technology.
He also spoke on the expansion of the Brazil-Russia-India-China-South Africa (BRICS) grouping, saying this represents the growing aspiration for a multipolar world based on sovereign equality. Russia’s chairmanship of Brics will pave the way for strengthening its role in the global monetary and financial system, he said.
Russia has been pushing for trade settlement in the national currencies of the Brics member states. It has also worked with China on the expansion of Brics, which has grown with the entry of Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE) in January.
“We extensively collaborate in the Brics format. The expansion of this grouping, along with more than 30 states [wanting] to join it in various capacities, clearly displays the growing aspirations for a multipolar world based on sovereign equality and mutual respect as stipulated by the UN Charter,” Alipov said.
Russia also hopes India and China will be able to overcome their differences on the border issue and play a key role in ensuring security and stability in Eurasia, he said.
“We are hopeful that India and China, as major civilisations possessing unique political wisdom, will find ways to achieve progress in the border issue and a normalisation of bilateral ties based on mutual respect of sensitive interests,” Alipov said.
The two countries should think about the prospects of a peaceful and secure Eurasia based on the principles of undivided security, inclusive dialogue and mutual accommodation instead of confrontation that “the West tends to create”, he added.
The Shanghai Cooperation Organisation (SCO) too can contribute to strengthening connectivity in Eurasia. “The integration processes have accelerated in the Eurasian space, where the SCO occupies a unique place as a platform for an increasing number of countries that consider it vital for countering emerging security challenges and promoting inter-regional economic cooperation,” he said.
Following the entry into the SCO of Iran in 2023 and Belarus in 2024, the increased potential of the organisation will contribute to strengthening connectivity in the region, he said.
Asked by reporters about Pakistan’s application to join Brics, Alipov replied: “We are now focused on accommodating those who were invited last year…But the number of aspirants is much larger.”