By Nidhi Verma and Krishn Kaushik
In a move to boost bilateral trade and reach a target of $100 billion by 2030, India is looking to enhance its energy partnerships with Russia, including potential deals with Rosneft and other leading Russian oil firms, Foreign Secretary Vinay Mohan Kwatra announced on Tuesday.
Indian Prime Minister Narendra Modi and Russian President Vladimir Putin have set ambitious goals to increase trade between the two countries, with a focus on the energy sector. Kwatra highlighted the importance of strengthening partnerships with Rosneft and other energy entities through government-to-government cooperation.
India has become the largest buyer of Russian seaborne oil, taking advantage of discounted prices as Western entities shy away from Russian oil due to sanctions imposed after the invasion of Ukraine. Russia currently stands as the top oil supplier to India, a major oil importer and consumer globally.
Following the meeting between Putin and Modi, the two countries outlined key areas of cooperation to achieve the $100 billion trade target. India aims to boost exports to Russia and address the trade imbalance, with a focus on eliminating non-tariff barriers and pursuing a Free Trade Agreement.
Energy cooperation will encompass nuclear energy, oil refining, petrochemicals, energy infrastructure, and technology partnerships. Russian entities like Rosneft already have significant investments in India's energy sector, while Indian companies hold stakes in Russian oil projects.
Besides energy, India is also a major buyer of Russian fertilizers, emphasizing the importance of securing crop nutrient supplies. Additionally, both countries agreed to establish a bilateral settlement system using national currencies.
Analysis:
The strengthening of energy ties between India and Russia, particularly through partnerships with Rosneft and other leading oil firms, signifies a significant step towards achieving the ambitious $100 billion trade target by 2030. As India emerges as a key player in the global energy market, collaboration with Russia will not only bolster economic relations but also enhance energy security and trade balance for both countries. The focus on energy cooperation, fertilizers, and bilateral settlements using national currencies highlights the diverse and strategic nature of the India-Russia partnership, with potential implications for global energy markets and trade dynamics.