Russia and India Forge Stronger Economic Bonds as Modi Visits Moscow

Latest updates on Russia-India economic ties, nuclear power, and shipbuilding during Modi's visit to Moscow.

Jul 9, 2024 - 12:19
Jul 9, 2024 - 12:20
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Russia and India Forge Stronger Economic Bonds as Modi Visits Moscow
Russia and India Forge Stronger Economic Bonds as Modi Visits Moscow

Russian President Vladimir Putin and Indian Prime Minister Narendra Modi have convened in Moscow to strengthen economic ties amidst ongoing challenges from international sanctions against Russia. Their discussions, focused on expanding nuclear cooperation and enhancing trade partnerships, underscore the strategic importance of bilateral relations between the two nations. The visit also highlights efforts to overcome payment hurdles and explore new avenues for economic collaboration, including infrastructure development and strategic energy projects.

Russia and India Boost Economic Partnership

Russian President Vladimir Putin and Indian Prime Minister Narendra Modi met in Moscow to strengthen collaboration across various sectors. Their discussions aimed to deepen ties amidst challenges in international trade relations due to sanctions against Russia by Western countries.

Nuclear Power Expansion

During the meetings, Rosatom, Russia's state nuclear corporation, announced plans to expand nuclear cooperation with India. They discussed building six new nuclear power units, adding to the existing Kudankulam Nuclear Power Project in Tamil Nadu, which started nearly two decades ago.

Increasing Trade and Infrastructure Projects

The Russian Direct Investment Fund (RDIF) and Indian partners, including Enso Group, signed agreements in pharmaceuticals, shipbuilding, and education sectors. RDIF highlighted investment opportunities worth up to 20 billion roubles ($227 million) to improve shipbuilding infrastructure in Russia.

Challenges in Payments

VTB Bank CEO Andrei Kostin acknowledged ongoing issues with sanctions and currency convertibility affecting payment flows between Russia and India, complicating bilateral economic relations.

Focus on Strategic Partnerships

Amid geopolitical tensions and sanctions, Russia is focusing on strengthening economic ties with "friendly" nations like India and China. Putin's gesture of awarding Modi Russia's highest honor, the Order of St Andrew, underscores the importance of bilateral cooperation.

Developing the Northern Sea Route

Discussions included developing the Northern Sea Route (NSR), crucial for transporting Russian commodities such as oil, coal, and liquefied natural gas (LNG). Rosatom aims to significantly increase NSR traffic, projecting 150 million metric tons by 2030, up from 80 million tons currently.

Future Prospects

As Modi concludes his visit to Moscow, both countries reaffirm their commitment to deepening economic cooperation. The outcomes of these discussions are expected to shape future economic strategies and investment opportunities between Russia and India, fostering stronger bilateral relations.

Also Read: Russia's Weekly Oil Exports Drop Due to Port Maintenance

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