India and Russia have reached advanced negotiations over a free trade deal that seeks closer economic ties as most Western governments aim to isolate Moscow over the conflict in Ukraine.
In a development likely to add to tensions in Washington, London and the EU capitals, Russia and India's trade ministers said on Monday that the two countries were in talks to strike a free trade deal.
Together with the Eurasian Economic Commission, the Russian deputy prime minister Denis Manturov, who is also a trade minister, said he was looking forward to intensifying talks on a free trade agreement with India. The Covid pandemic has disrupted discussions between India and the Russian-led Eurasian Economic Union on a trade deal, Jaishankar said, adding that our colleagues will pick up on this because we do believe it will make a real difference to our trade relationship.
It comes as the government of Narendra Modi also holds trade talks with the UK and the EU, in a development likely to stoke tensions with the west before India hosts the G-20 summit in Delhi this autumn.
The UK is holding an eighth round of trade talks over a free trade deal with India, which Kemi Badenoch, a trade secretary, has proposed could be concluded as early as this year.
The government of Narendra Modi has not completely criticized Russia's war in Ukraine, but has called for a peaceful resolution of the conflict. Despite the efforts toimpose sanctions against Russia and India, trade between Russia and India has surged, despite efforts to impose sanctions on Moscow and reduce Russia's global supply chains.
Highlighting its willingness to trade with Russia, the Indian finance minister, Nirmala Sitharaman, said on Monday the country could buy Russian crude oil near or past the level of a G 7 price cap on its exports, if Opec's decision earlier this month to cut output increased global prices.
Russia, a key supplier of military hardware to India, displaced Iraq last month to become India's top crude oil supplier, according to Reuters. Before Vladimir Putin invaded Ukraine in February last year, India bought very little oil from Russia.
Russia is preparing to develop closer relations with India, with Putin welcoming China's president, Xi Jinping, to Moscow last month. China and Russia today vowed to deepen military cooperation after meetings between Putin and China's defense minister, Li Shangfu, in Moscow.