Amidst the backdrop of Western sanctions imposed on Russia due to the conflict in Ukraine, Moscow has been actively seeking to strengthen ties with “friendly” nations like India. This week, Prime Minister Narendra Modi’s two-day visit to Moscow saw a flurry of agreements and discussions focused on bolstering economic cooperation and diversifying trade flows.
A key focus of the visit was on expanding nuclear cooperation. Russia’s state nuclear corporation Rosatom announced discussions to build six more nuclear power units in India, in addition to potential collaboration on smaller reactors. Rosatom and its Indian counterparts also explored utilizing the Northern Sea Route for transporting Russian resources like oil, coal, and LNG.
Beyond nuclear energy, the Russian Direct Investment Fund (RDIF) signed agreements with Indian partners for joint investments in shipbuilding, education, and pharmaceuticals. These deals represent a significant push for Russian companies seeking to tap into the vast Indian market.
However, the article highlights challenges in payments due to Western sanctions and currency limitations. VTB Bank acknowledged these problems but expressed optimism about finding solutions.
Overall, the visit underscored Russia’s commitment to strengthening economic ties with India to mitigate the impact of Western sanctions and create alternative trade routes. This strategic alliance holds implications for global politics and economics as Russia seeks to reorient its economic landscape in the face of Western pressure.