Russia aims at insulating India from third country pressures in trade ties

New Delhi: Russia is pitching for creating an "architecture" to insulate its trade ties with India from third country pressures.  In the background of decline in India's crude oil purchase from Russia,  although said to be for a 'brief period'  in view of western sanctions, the Russian attempt is aimed at sustaining trade relations saving it from external pressures.

The Russia view focusing bilateral relations was aired by Kremlin spokesperson Dmitry Peskov, through a virtual news conference arranged by the Russian mission in New Delhi in the run-up to the visit of Russian President Vladimir Putin for his annual summit with Prime Minister Narendra Modi slated for December 4. 

In addition to salvaging the valuable crude oil deal from further decrease, Russia is also trying to address India's concerns over massive trade deficit, cooperation in small modular nuclear reactors and expanding defence and energy ties.  These would be among the focus areas during the summit talks on Friday.

The Russian side hopes to see significant outcomes including in trade and defence areas from the high-profile visit of the Russian head of state through talks with Modi. 

The visit is happening  at a time when India-US relations are under strain from several angles, especially after the US slapping a whopping 50 per cent tariff on Indian goods, including 25 per cent levies for New Delhi's procurement of Russian crude oil.

Peskov said the decline in oil procurement could be for a very "brief period" and Russia is confident of averting the impact of the Western restrictions.

"We have deep experience in performing under the regime of these illegal sanctions," Peskov said.

More than addressing the immediate concerns,  Peskov also mentioned  creating a mechanism to insulate India-Russia trade and energy ties from pressure from third countries, in an apparent reference to western sanctions.

"We should create an architecture of our relationship that must be free of any influence coming from any third countries.

The Kremlin spokesperson also called for a new system of global trade where the payment system (Dollar denominated trade) is not used as a "political tool".

Peskov indicated that putting in place a mechanism for settling trade in national currencies, avoiding the US dollar dominated system, may figure in Modi-Putin talks.

"We understand the pressure on India," he said, referring to the US.

Peskov also said that Russia is fully aware of India's concerns about the massive trade deficit, and it is working to fix "the problem".

"There is a real imbalance in our trade. We are aware of that. We are selling much more than we buy from India," he said.

India has been concerned about the increasing trade deficit in Russia's favour and Peskov said that they are aware of it and Russia would like to increase imports from India. 

India's procurement of goods and services from Russia amounts to around USD 65 billion while Russia's imports from India stand at around USD 5 billion.

To a question on Russia's "limitless" friendship with China, Peskov said Moscow wants the same level of relationship with New Delhi as well. "We are ready to go as far as India is ready. We are ready to develop our cooperation with India in every possible field." Peskov said Russia respects bilateral ties between India and China and hoped that both the countries are capable of resolving their issues in order to keep global stability and peace.

Referring to India-Russia defence ties, the Kremlin spokesperson highlighted the joint production of BrahMos missiles and described the venture as an example of the exchange of high technologies.

Peskov said cooperation in areas of small and medium nuclear reactors is expected to feature in talks between Modi and Putin. He added that Russia is ready to share its technology in producing such small reactors

Peskov praised the latest mediation efforts by the US to end the Ukraine war "as very effective".and that the Russia-Ukraine conflict will feature prominently at the Modi-Putin summit.

"Russia is open for peaceful negotiation, we have to reach our goals.