Russia to import more Indian goods to balance trade: Putin
What's the story
Russian President Vladimir Putin has directed his government to take steps to reduce the trade imbalance with India. The move comes as a response to India's heavy crude imports from Russia. Putin suggested that Russia could buy more agricultural products and medicines from India as part of these measures. The announcement was made during his address at the Valdai Discussion Forum in Sochi on Thursday evening.
Trade dynamics
'India will balance tariff losses through Russian crude imports'
Responding to the additional 25% tariff imposed by US President Donald Trump on India's purchase of Russian oil, Putin said that India would balance its losses through crude imports from Russia. He also emphasized that this would enhance India's standing as a sovereign nation. The Russian president stressed the need for his government to come up with proposals for "Indian friends and counterparts" in promising areas of cooperation.
Economic potential
Trade turnover between Russia and India around $63 billion
Putin highlighted the enormous potential for economic cooperation between Russia and India, but also noted that certain issues need to be resolved. He compared the trade turnover between Russia and India (around $63 billion) with that of Belarus ($50 billion), noting the population difference (1.5 billion in India vs 10 million in Belarus). This disparity, he said, doesn't match their potential opportunities.
Trade challenges
Putin identifies key bottlenecks in Russia-India trade
Putin stressed the need to address a range of issues to unlock their potential advantages. He identified financing, logistics, and payment bottlenecks as key concerns in this regard. The Russian president also underscored that Russia has "never had any problems or interstate tensions with India." He praised the "special" nature of Russia-India relations since the Soviet Union era when India was fighting for its independence.
Diplomatic relations
Modi is my friend, says Putin
Putin referred to Prime Minister Narendra Modi as his "friend," stressing their trustworthy interactions. He praised India's nationalist government under Modi, calling him a "balanced, wise," and "nationally oriented" leader. The Russian president noted that everyone in India knows about its decision to ignore US pressure to stop oil imports from Russia.