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Indian Prime Minister Narendra Modi’s first wartime visit to Russia commences today in Moscow.
The specter of closer Russia-China military and economic cooperation has stirred Modi's interest in maintaining close relations with the Russian Federation.
China is India's arch-enemy, and tensions remain high, and even violent, along the border between the two nations.
Modi is expected to spend two days in Russia for what will be his first face-to-face encounter with Putin since the Russian leader went to Delhi in 2021 before the full-scale invasion of Ukraine. Back in 2000, Russia and India agreed to hold annual summits. But that tradition was halted first by the pandemic, then the war in Ukraine.
According to India’s Trade Ministry, trade between India and Russia reached a record $65.7 billion in the 2023-2024 financial year. Of that, Indian exports (pharmaceuticals, chemicals, electrical and mechanical equipment, iron and steel) to Russia totalled $4.26 billion, while imports from Russia were $61.44 billion (mostly oil, oil products and fertilizers), reports The Bell.
The likely reason for the switch is Moscow’s increasing dependence on Beijing – a dependence that has caused some alarm in New Delhi. Relations between India and China are often strained, and New Delhi would not want Russia to become too beholden to China.
However, a barrier to further investment are problems with settling international payments. As one top Russian official put it to The Bell: “You may be able to agree on projects and investments, but how will you pay for them?”
Specifically, the problem is Indian companies paying for oil in rupees – but then Russian companies not being able to withdraw this money from the country. This became a major issue last year. We do not know the exact amount currently in limbo in Indian accounts, but two Russian officials told The Bell the total was less than $10 billion.
Military cooperation is another reason why India is concerned about Moscow’s deeper ties to China, according to expert Alexander Gabuev. “It is very important for India to understand whether, over time, Beijing will gain leverage that could limit Moscow’s willingness to maintain the weapons it has already delivered,” said Gabuev. “Another question is the extent to which any new systems offered to India – or upgrades of existing ones – will depend on Chinese components.”
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They're all three in BRICS so this sounds made up. In fact, most all the news these days sounds made up. It's more likely Moscow developed a BRICS currency. Putin promised they would.