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Modi and Putin to discuss trade deals as US tariffs threaten India’s $190 billion economy

In this post:

  • Russian President Putin visits India Thursday for talks with PM Modi on defense, energy, and economic cooperation.
  • India faces 50% U.S. tariffs over continued Russian oil purchases despite pressure from Washington.
  • Putin visit comes as India tries to meet energy demands for 1.4 billion people while managing economic fallout from US sanctions.

Russian leader Vladimir Putin arrives in India this Thursday for discussions that highlight New Delhi’s delicate position between Moscow and Washington while the Ukraine conflict continues.

The Russian president’s state visit includes scheduled meetings with Indian Prime Minister Narendra Modi on Friday. Both nations say they plan to assess their partnership progress, talk about shared concerns, and complete various departmental and commercial deals.

New Delhi has kept purchasing Russian oil at reduced prices, even as Washington warns these transactions help Moscow finance its military operations in Ukraine. In response, U.S. President Donald Trump added 25% duties to Indian goods, bringing total levies to 50%.

India says these purchases are necessary to power its economy and meet energy demands for its 1.4 billion citizens.

Putin’s previous trip to India happened in 2021. Modi traveled to Moscow last year, and the two briefly spoke in September during a Shanghai Cooperation Organization gathering in China.

The summit takes place while the United States pushes forward with plans for Ukraine peace talks and wants stronger backing from important allies.

Trump’s peace proposal drew criticism for appearing too favorable to Moscow. American and Ukrainian representatives met in Geneva over a week ago, leading to changes in the plan.

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Modi hasn’t directly criticized Russia over the Ukraine fighting but has stressed the importance of finding a peaceful solution.

Sreeram Sundar Chaulia, who studies international affairs at the Jindal School of International Affairs near New Delhi, explained India has stayed away from openly mediating because it might damage relations with both Russia and the U.S.

“But behind-the-scenes diplomacy by Modi is feasible, and has happened already to some extent,” Chaulia said.

He added Modi might try pushing Putin “to accommodate some Ukrainian and European concerns to bring about a cessation of hostilities.”

Economic deals take center stage

India and Russia plan to strengthen their relationship and will likely finalize multiple documents covering economic partnership, trade improvements, shipping, healthcare and media connections, Indian officials working on summit preparations told Associated Press.

India hopes to ship more medicines, farm products and fabrics to Russia and wants Moscow to drop certain trade obstacles. New Delhi also seeks guaranteed long-term fertilizer shipments from Russia.

Both countries are working to complete an arrangement allowing Indian skilled workers to move to Russia safely and legally.

Oil purchases under scrutiny

Washington has urged India to stop buying discounted Russian oil, claiming New Delhi helps fund Moscow’s war. In August, Trump imposed 50% duties on Indian goods to pressure the issue as reported by Cryptopolitan earlier.

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India rejected these accusations, stating it follows global sanctions while putting its national interests and energy security first. However, its stance may face new challenges after recent U.S. sanctions against Russian oil companies Rosneft and Lukoil. Indian officials said the country will skip oil from sanctioned producers but keep purchasing from companies not under restrictions.

“India will certainly underscore that there is no Indian desire to cut off energy supplies from Russia completely,” said Harsh Pant, vice president of foreign policy at the Observer Research Foundation, a New Delhi-based research group.

Pant said future purchases depend “on the market forces and how effective sanctions are in weaning away Indian private sector or Indian state-run companies from Russian energy sources.”

Energy discussions will likely dominate the summit, including India’s investments in Russia’s Far East region and expanded nuclear power collaboration. The Kudankulam nuclear facility in Tamil Nadu, built with Russian help, remains central to this partnership. Officials said discussions continue about making equipment locally and possible joint ventures in other countries.

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