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Russia to intensify FTA talks with India.
Apr 19, 2023

India and Russia are discussing a free trade agreement (FTA), Russian deputy Prime Minister Denis Valentinovich Manturov said on Monday. The move is seen further boosting bilateral trade ties after New Delhi’s sharp increase in crude imports from Moscow since the outbreak of the Ukraine war.

Russia’s share in India’s crude oil import basket rose to a record 28% in January compared with a mere 0.2% before the Russian invasion of Ukraine on February 24, 2022.

As a result, India’s imports from Russia more than quadrupled to around $46 billion in FY23.

'We pay special attention to the issues of mutual access of production to the markets of our countries,' Manturov, who is also Russia’s trade minister, said at an event in New Delhi. 'Together with the Eurasian Economic Commission, we are looking forward to intensifying negotiations on a free trade agreement with India.'

Foreign minister S Jaishankar said the Covid pandemic had disrupted discussions on an FTA between India and the Russian-led Eurasian Economic Union, and that he hoped 'our colleagues will pick up on this because we do believe it will make a real difference to our trade relationship'.

Jaishankar said payments, logistics and certification are some of the key areas, and it is possible to find solutions to them.

In his address at the India-Russia Business Dialogue, Jaishankar said, 'We are discussing the importance of connectivity and the north-south and maritime corridors have been considered. There is also discussion on payment issues like international trade settlement in Indian rupee.'

Manturov also said Russia would consider widening the use of 'national currencies and currencies of friendly countries'. India has been keen on increasing the use of rupee for trade with Russia.

Manturov said road construction material and equipment and chemicals and pharmaceutical products were in demand in Russia, and 'I am sure that this will create opportunities for Indian companies to increase their supplies to Russia'.

Trade ties between India and Russia are on an upswing notwithstanding the increasing disquiet from Western powers over the Ukraine war.

By importing fuel, India chose to protect it’s citizens from hardening global commodity prices.

New Delhi is also currently engaged in FTA discussions with the UK and the European Union, among others.

Russia’s efforts to improve trade with India form part of its strategy to help evade the impact of Western sanctions by boosting commerce with Asian giants, including China.

On February 25, the two-day meeting of finance ministers and central bank heads of the G20 countries concluded in Bengaluru without producing a joint communique, given the irreconcilable differences between the G7 segment of the grouping and Russia-China on how to describe the one-year-old Ukraine conflict. The G7 insisted on unequivocal condemnation of Russia for invasion of its neighbour, while Russia, with support from China, wouldn’t budge and demanded that it be called 'a special military operation'. As the chair, India had sought a consensus and suggested the word 'war' could be dropped.

financialexpress.com

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