India-Russia trade is undergoing a major structural reset, transitioning from a relationship dominated by energy and defense into a diversified economic partnership. President Vladimir Putin and Prime Minister Narendra Modi formalized a blueprint for long-term economic integration with targets to reach US$100 billion by 2030. Explore the Russia-India business corridor. Find analysis on bilateral trade, strategic joint ventures, and investment opportunities. Key intelligence for companies in this growing partnership.
Indian and Russian investors are building a US$2 billion Urea production plant at Togliatti to secure the future supplies of fertilizers to India following supply chain weaknesses uncovered during the Iran conflict. India is the world’s biggest urea importer.
Russia is upgrading its Taman Port near Krasnodar to help develop urea and other fertilizer exports, specifically for Asian markets now seeking supply chain alternatives to the sole Middle East route. When completed, the port’s capacity will increase to 3.5 million tonnes of ammonia and 1.5 million tonnes of urea per year.
India has added several Russian companies to, and extended the licences of several Russian maritime insurance companies after coverage expired due to delays caused by problems in the Persian Gulf. The number of Russian insurers licenced to finance maritime risk in India has been increased to eleven.
Russia and Pakistan have commenced discussions concerning a Pakistan-Eurasian Economic Union Free Trade Agreement. Pakistan has an economy worth over US$2 trillion and a consumer market of over 250 million people. Moscow see Pakistan as a promising partner in the region with significant potential for growth.
Russia has stepped up diplomatic and energy supply chain developments this past month with visits to India, Bangladesh and Sri Lanka, while Pakistan and Afghanistan, both bordering Iran, are also developing as key links in new emerging South Asian oil and gas infrastructure and architecture. We examine what is happening in a region that Russia is almost right in the centre of as regards energy security and future supplies.
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The Russian Deputy Foreign Minister Andrey Rudenko has stated that Russia will not export oil to any countries imposing a price cap. This affects all the G7 nations including the European Union, who have imposed price caps at US$45 a barrel for Russian fuel oil. However, volatility created by the conflict in Iran has seen prices fluctuate between US$75 to above US$100 a barrel while Russia has shifted its energy export priorities to markets in Asia. JP Morgan analysts suggest the price could reach US$150 a barrel if the Strait of Hormuz is not reopened soon.
Russian rail connectivity and freight volumes with the Shanghai Cooperation Organisation countries has been increasing and is set to continue this trend. We examine the rail development plans of each of the major national carriers as it becomes apparent that overland supply chains must improve in the wake of regional maritime uncertainties and conflicts.
India has placed a US$25 billion defence sector order with Russia for various military equipment including S‑400 air defence missile systems, various types of aircraft, and artillery systems, as part of a rapid military modernization drive. India is the world’s fifth‑largest military spender.
Russia is discussing energy supplies with Sri Lanka, as the country looks to diversify away from an over-reliance on Middle Eastern import supply chains, to alternative suppliers and developing its renewables sector. Sri Lanka has introduced restrictions on energy use in recent weeks due to problems with imports due from Iran.
Russia’s RZD Logistics are reporting an easing of rail transport problems along the INSTC and are saying that trains servicing the routes via Iran are now being booked for the March and April.
India is discussing increasing the supplies of fertilizer from Russia as imports from the Middle East have ceased and China has also prohibited exports. The Indian summer crop planting season has begun and lasts through until the start of the June monsoon season, meaning the situation is becoming time critical.
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