Russia to Buy More From India to Offset US Tariff
Putin underlined that Russia and India have never had any problems or tensions between them and always took actions by keeping in view their sensitivities.
New Delhi/Moscow: Russian President Vladimir Putin has ordered the Russian government to devise measures, including buying more agricultural products and medicines from India, to soften the trade imbalance with India due to heavy crude oil imports by New Delhi. The Russian President's announcement comes weeks ahead of his visit to India in early December for an annual summit with Prime Minister Narendra Modi.
Speaking at the Valdai discussion forum of security and geopolitical experts from 140 countries, including India, at the Black Sea resort of Sochi on Thursday, Mr Putin, according to reports, said, “More agricultural products may be purchased from India. Certain steps can be undertaken from our side for medicinal products and pharmaceuticals.”
India has been taking up the matter of heavy trade imbalance in its trade ties with Russia and is pressing for more access to the Russian market for Indian goods.
Speaking at the Valdai plenary session, Mr Putin praised Mr Modi as a “balanced and wise” leader. He also said that he is looking forward to his trip to India in early December and meeting with "my friend and our reliable partner Mr Modi".
Referring to the American punitive measures imposed on New Delhi, especially for the import of Russian oil, the Russian President was also quoted as saying that India's import of Russian crude oil is "purely an economic calculation".
"There is no political aspect here... If India refuses our energy supplies, it will suffer certain losses. Estimates vary; some say it could be around $9-10 billion. But if it doesn't refuse, sanctions will be imposed, and the loss will be the same. So why refuse if it also carries domestic political costs?… Of course, the people of a country like India, believe me, will closely monitor the decisions made by the political leadership and will never allow any humiliation in front of anyone. And then, I know Mr Modi… He himself would never take any steps of this kind,” Mr Putin said.
The Russian President added: “The losses faced by India due to punitive US tariffs will be balanced by crude imports from Russia, plus it will gain prestige as a sovereign nation.”
The Russian President also underlined that Russia had “never had any problems or interstate tensions with India” and noted that both countries always took actions keeping in view the respective sensitivities. He noted that, in their political relations, Russia and India almost always coordinate their actions.
“We always hear and take into account the positions of our countries on various key issues. Our foreign ministries work very closely together,” Mr Putin said.
The Russian President highlighted the “special” nature of Russia-India relations since the days of the Soviet Union, when India was fighting for its Independence. “In India, they remember this, they know it, and they value it. We appreciate that India has not forgotten it,” he said.
Mr Putin referred to Mr Modi as his “friend”, noting that he feels comfortable in their trustworthy interactions while hailing him as a “nationally oriented” leader.
The Russian President also recalled that the declaration of a special strategic privileged partnership between Russia and India will soon celebrate its 15th anniversary and asserted, “That's what it really is
The Russian President said he had instructed the Russian government to think of proposals to be made to “Indian friends and counterparts on the most promising areas of cooperation and how Russia can smooth the imbalance in trade and other areas,” according to reports citing the state-run news agency TASS.
Mr Putin noted the vast potential for economic cooperation between Russia and India but acknowledged the need to resolve specific issues to fully unlock these opportunities. “We need to solve the whole range of tasks to unlock our opportunities and potential advantages,” he said, identifying financing, logistics and payment bottlenecks as key concerns.
Meanwhile, at his weekly briefing in New Delhi, the ministry of external affairs spokesperson hailed the 25th anniversary on Friday of the “declaration of the strategic partnership” with Russia, adding that India “looks forward to further building of the special and privileged strategic ties” with Russia, in what is being seen as a clear and firm message to the Trump administration in Washington.