Putin orders government to soften trade imbalance with India

Russian President Vladimir Putin has ordered to devise measures, including buying more agricultural products and medicines from India, to soften the trade imbalance with India due to heavy crude import by New Delhi.

Putin's announcement comes weeks ahead of his visit to India in early December for an annual summit with Prime Minister Narendra Modi.

The Russian president was speaking at the international Valdai discussion forum of security and geopolitical experts from 140 countries, including from India, at the Black Sea resort of Sochi in South Russia late Thursday evening.

“The losses faced by India due to punitive US tariffs would be balanced by crude imports from Russia, plus it will gain prestige as a sovereign nation,” Putin said.

He was referring to the additional 25 per cent tariff imposed by President Donald Trump on New Delhi as a penalty for its purchases of Russian oil, taking the total levies imposed on India by the US to 50 per cent.

Putin said that to remove the trade imbalance, Russia may buy more agricultural products and medicines from India. “More agricultural products may be purchased from India. Certain steps can be undertaken from our side for medicinal products, pharmaceuticals,” Putin stated.

The 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 smoothen the imbalance in trade and other areas,” according to state-run news agency TASS.

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.

For comparison, he said, the trade turnover between Russia and India is about USD 63 billion, and USD 50 billion with Belarus. “At the same time, the population is 1.5 billion in India and 10 million in Belarus. It obviously does not correspond to our potential opportunities,” Putin stressed.

“We need to solve the whole range of tasks to unlock our opportunities and potential advantages,” Putin said, identifying financing, logistics and payment bottlenecks as key concerns.

Putin also underlined that Russia had “never had any problems or interstate tensions with India. Never,” and noted that both the countries always took actions keeping in view the respective sensitivities.

He 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.

He referred to Prime Minister Narendra Modi as his “friend,” noting that he feels comfortable in their trustworthy interactions.

Putin lauded India's nationalist government led by Modi, calling him a “balanced, wise,” and “nationally oriented” leader.

He remarked, “Everyone in India knows this well,” particularly regarding India's decision to ignore US pressure to halt oil imports from Russia.

Putin 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.” 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,” Putin said.

Additionally, he welcomed the idea of a joint fund to develop AI and other cutting-edge technology proposed by Dr Arvind Gupta, Director General of New Delhi-based Vivekananda International Foundation (VIF), who was attending the Sochi forum.