Russia’s Nod: Putin Urges Swift Seal on India–Eurasian Trade Deal
Russia’s Nod: Russian President Vladimir Putin on Friday emphasized the critical need for the early signing of a preferential trade agreement (PTA) between India and the Eurasian Economic Union (EAEU). Speaking at the India-Russia Business Forum, Putin argued that such a strategic pact would significantly reduce trade barriers, thereby facilitating the smoother movement of goods, services, and capital between the rapidly growing economies. This push follows the first round of negotiations for the free trade agreement (FTA) held just last week, building upon the “terms of reference” for the agreement that India and the five-nation grouping signed back in August.
Ambitious Trade Target: Hitting the $100 Billion Mark
During his address, President Putin reaffirmed an ambitious economic goal set jointly with Prime Minister Narendra Modi: achieving a substantial trade target of $100 billion between India and Russia by the year 2030. Currently, bilateral trade is estimated to be around $70 billion. Putin underscored that realizing this substantial increase requires more than just high-level political will; it demands the dedicated and “active efforts” of the business communities from both nations. The EAEU, which includes Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan, is viewed as a key vehicle for unlocking this massive trade potential, making the PTA a central piece of this long-term economic vision.
EAEU PTA: The Impetus for Barrier Reduction
Putin, who was on a two-day official visit, stressed the importance of reducing existing barriers to streamline the flow of commerce and investment across the regions. “In this regard, a strong impetus, as it seems, could be given by the rapid signing of a preferential trade agreement between India and the Eurasian Economic Union,” he noted. This statement highlighted the Russian leadership’s commitment to making the EAEU—a unified market of approximately 180 million people—more accessible to Indian enterprises. The EAEU agreement is seen as the most efficient way to achieve regulatory harmonization and tariff reduction, thereby providing a competitive edge to bilateral trade.
Energy and Beyond: Diversifying Russian Engagements
While addressing the Forum, Putin confirmed that the Russian delegation’s presence was multifaceted, extending beyond traditional energy discussions. He explicitly mentioned the intent to sign new contracts for the supplies of oil and gas, underscoring the enduring significance of energy cooperation. However, the Russian President made it clear that their objective is the “development of our multi-faceted relations with India in various fields.” He announced that Russian firms are prepared to “increase manifold” their purchases of goods and services from India, indicating a strong desire for a more balanced and diverse trade portfolio that benefits both partners.
The Foundation of Trust: National Currencies and Payments
President Putin also touched upon the foundational pillars necessary for sustained free trade: a resilient bilateral settlement system and reliable payment and insurance mechanisms. He emphatically stated that free trade is “unthinkable” without these safeguards. He highlighted the “tangible advantages” offered by using national currencies in trade, implicitly referencing the move away from the US dollar to protect transactions from geopolitical risks and external developments. Ensuring uninterrupted financial transactions is paramount to maintaining the high levels of trust and predictability required for businesses to thrive in the complex global environment.
Future Frontiers: Industrial Cooperation and Artificial Intelligence
Looking towards the future, Putin asserted that the India-Russia cooperation must evolve beyond mere trade transactions. He called for an enhancement of industrial cooperation, suggesting a transition to joint manufacturing and technological advancement. Specifically, he expressed Russia’s readiness for “broad cooperation within the field of artificial intelligence,” a sector where both countries have already shown significant progress. This pivot toward high-tech and industrial collaboration signals a deeper, long-term partnership aimed at mutual growth and technological self-reliance, which was also the focus of the summit-level talks held earlier in the day with PM Modi.