- Energy and defence cooperation remains central, as India seeks to maintain operational support for Russian-origin military systems, including Sukhoi-30 jets and potentially the advanced Su-57 fighter.
- The discussions extend to investments, with Russia seeking technical equipment for its oil assets, while India explores the possibility of restoring a 20% stake in the Sakhalin-1 gas project.
Russian President Vladimir Putin began a two-day visit to India on Thursday. He aims to boost sales of Russian oil, missile systems, and fighter jets. The visit also seeks to restore energy and defence ties that have weakened under US pressure on New Delhi. Russia has supplied arms to India for decades. The South Asian nation has become its top buyer of seaborne oil, even after Western sanctions followed Moscow’s invasion of Ukraine in February 2022.
However, India’s crude imports from Russia are set to hit a three-year low this month. The decline comes amid tighter sanctions on Russia and India’s increasing purchases of US oil and gas, according to Reuters. During his first visit to the Indian capital in four years, Putin will meet Prime Minister Narendra Modi. Defence Minister Andrei Belousov and a wide-ranging delegation of business and industry leaders will accompany him.
“Putin’s visit offers an opportunity for Delhi to reaffirm the strength of its special relationship with Moscow and to make progress on new arms deals,” said Michael Kugelman of the Atlantic Council. He added that new initiatives may emerge, although many will likely focus on low-hanging opportunities in bilateral relations.
Still, Indian officials worry that new energy and defence agreements with Russia could provoke a reaction from US President Donald Trump. In August, he raised tariffs to 50% on Indian goods in response to New Delhi’s purchases of Russian oil. Ahead of the visit, officials from both sides held talks on defence, shipping, and agriculture. They also agreed to start discussions on a free trade deal between India and the Russian-led Eurasian Economic Union.
The delegation includes executives from Sberbank, arms exporter Rosoboronexport, and sanctioned oil companies Rosneft and Gazprom Neft. Sberbank is interested in investing in Indian infrastructure projects using the Indian rupee. Rupees form a significant part of bilateral trade.
Participants also discussed civilian nuclear energy. India hopes to finalise a US trade deal by year-end. Analysts note that while energy trade is slowing due to sanctions, defence ties continue to bind the two countries together. Recent US-Russia talks on Ukraine may ease India’s engagement with Moscow. Nevertheless, strategic defence cooperation is likely to remain the cornerstone of the bilateral relationship.