New Delhi: Foreign Minister of Russia Sergei Lavrov The flight is set to fly to India this week, sources said, finding time to visit one of the biggest buyers of Russian goods as the international community begins to isolate Moscow for its invasion of Ukraine. .
There is little sign that buying will slow down any time soon, as more deals are signed. A source said the two countries could discuss facilitating trade payments hampered by Western sanctions on Russian banks. The media has said that he can hold talks in Delhi on Friday.
It will be Lavrov’s third overseas visit since Russia’s February 24 invasion of Ukraine, following a visit to Turkey for talks with his Ukrainian counterpart earlier this month and a scheduled meeting in China on Thursday.
Russia is India’s main supplier of defense hardware, but overall annual trade is small, averaging around $9 billion over the years, mainly fertilizers and some oil.
By comparison, India’s bilateral trade with China is over $100 billion annually.
But given the steep discounts on Russian crude since the attack on Ukraine, India has bought at least 13 million barrels, compared to about 16 million barrels imported from the entire country last year. Several European countries have also continued to buy Russian energy, despite publicly criticizing Moscow.
New Delhi has called for an immediate ceasefire in Ukraine but has refused to explicitly condemn Moscow’s actions. It has avoided voting on several United Nations resolutions on war.
The Steel Minister said on Sunday that India is now looking at doubling its imports of Russian coking coal, used in steel making.
Reuters reported on Tuesday that India had recently contracted to buy 45,000 tonnes of Russian sunflower oil for April delivery after supplies from Ukraine were cut short. Last year, India bought about 20,000 tonnes a month from Russia.
A senior Indian government official said, “India will import more items from Russia, especially if it is at a discount.”
The source said the government is looking at setting up a rupee-ruble trading system and discussions are on between Indian and Russian financial authorities. All sources declined to be named as the talks were private.
The government and the Reserve Bank of India (RBI) did not immediately respond to requests for comment.
other systems
Besides the rupee-ruble trade window, several other options are on the cards, including direct settlement of all government and semi-government payments through the central banks of the two countries, the source said.
“India has made up its mind to continue trade with Russia, by any means,” said Happyman Jacob, professor of international studies at New Delhi’s Jawaharlal Nehru University.
“During the visit of the Russian Foreign Minister, the bureaucracy can certainly raise the issue of how to continue to look for alternative mechanisms to smooth trade relations between the two sides.”
The Russian embassy in New Delhi said it could not confirm the visit. India’s foreign ministry said it had no information to share.
Another government source said that in a sign of continuing ties despite the Ukraine crisis, India is considering allowing Russia to use its funds lying with the RBI to invest in Indian corporate bonds.
Russia has retained around Rs 2,000 crore ($263 million) of Indian payments for Russian defense equipment with the RBI.
But another government official said New Delhi would have to diplomatically deal with pressure from the West to be able to maintain its ties with Russia.
US President Joe Biden this month said India was “somewhat unsteady” in taking action against Russia. A US diplomat said after meeting Indian officials in New Delhi last week that the US had not asked partners like India to abruptly stop energy purchases from Russia.
There is little sign that buying will slow down any time soon, as more deals are signed. A source said the two countries could discuss facilitating trade payments hampered by Western sanctions on Russian banks. The media has said that he can hold talks in Delhi on Friday.
It will be Lavrov’s third overseas visit since Russia’s February 24 invasion of Ukraine, following a visit to Turkey for talks with his Ukrainian counterpart earlier this month and a scheduled meeting in China on Thursday.
Russia is India’s main supplier of defense hardware, but overall annual trade is small, averaging around $9 billion over the years, mainly fertilizers and some oil.
By comparison, India’s bilateral trade with China is over $100 billion annually.
But given the steep discounts on Russian crude since the attack on Ukraine, India has bought at least 13 million barrels, compared to about 16 million barrels imported from the entire country last year. Several European countries have also continued to buy Russian energy, despite publicly criticizing Moscow.
New Delhi has called for an immediate ceasefire in Ukraine but has refused to explicitly condemn Moscow’s actions. It has avoided voting on several United Nations resolutions on war.
The Steel Minister said on Sunday that India is now looking at doubling its imports of Russian coking coal, used in steel making.
Reuters reported on Tuesday that India had recently contracted to buy 45,000 tonnes of Russian sunflower oil for April delivery after supplies from Ukraine were cut short. Last year, India bought about 20,000 tonnes a month from Russia.
A senior Indian government official said, “India will import more items from Russia, especially if it is at a discount.”
The source said the government is looking at setting up a rupee-ruble trading system and discussions are on between Indian and Russian financial authorities. All sources declined to be named as the talks were private.
The government and the Reserve Bank of India (RBI) did not immediately respond to requests for comment.
other systems
Besides the rupee-ruble trade window, several other options are on the cards, including direct settlement of all government and semi-government payments through the central banks of the two countries, the source said.
“India has made up its mind to continue trade with Russia, by any means,” said Happyman Jacob, professor of international studies at New Delhi’s Jawaharlal Nehru University.
“During the visit of the Russian Foreign Minister, the bureaucracy can certainly raise the issue of how to continue to look for alternative mechanisms to smooth trade relations between the two sides.”
The Russian embassy in New Delhi said it could not confirm the visit. India’s foreign ministry said it had no information to share.
Another government source said that in a sign of continuing ties despite the Ukraine crisis, India is considering allowing Russia to use its funds lying with the RBI to invest in Indian corporate bonds.
Russia has retained around Rs 2,000 crore ($263 million) of Indian payments for Russian defense equipment with the RBI.
But another government official said New Delhi would have to diplomatically deal with pressure from the West to be able to maintain its ties with Russia.
US President Joe Biden this month said India was “somewhat unsteady” in taking action against Russia. A US diplomat said after meeting Indian officials in New Delhi last week that the US had not asked partners like India to abruptly stop energy purchases from Russia.