A Growing Relationship
India's External Affairs Minister, S Jaishankar, has stated that the recent surge in trade between India and Russia is not a temporary phenomenon. He believes that this growth signifies the emergence of new economic opportunities for both nations. This statement comes amidst India's increased purchase of oil from Russia, making it one of the top buyers as Western countries impose sanctions in response to the Ukraine-Russia war.
Jaishankar emphasized the need to view Russia beyond a political or security lens. He highlighted the fresh economic opportunities arising from Russia's eastward shift. He stressed that the spike in trade and new areas of cooperation should not be considered a temporary phenomenon. This statement was made at the annual general meeting of the Confederation of Indian Industries (CII).
The trade between India and Russia has witnessed a significant jump, reaching $65.7 billion in the financial year ending March 2024. This represents a 33% increase compared to the previous year. The two nations have historically shared a close relationship spanning decades. Notably, India refrained from condemning Moscow's invasion of Ukraine in February 2022, instead urging both sides to resolve the conflict through dialogue and diplomacy.
India and Russia are actively pursuing an investment treaty and a free trade agreement with the Moscow-led Eurasian Economic Union.
In the same event, Jaishankar addressed the threat of sanctions being used as a tool in global diplomacy. He alluded to the US's warning of potential sanctions after India and Iran signed the Chabahar Port pact.
Commenting on the Ukraine conflict, escalating violence in West Asia, and disruptions in logistics due to geopolitical tensions, Jaishankar stated that the world is facing a "3F crisis" of fuel, food, and fertilizers. He further noted the emergence of new tensions in land and sea in Asia, citing disregarded agreements and disregard for the rule of law.
Jaishankar concluded by stating that terrorism and extremism have consumed those who have long practiced them. He described the current situation as a "perfect storm.