Putin visit: What is on the agenda for India-Russia summit

The Russian President’s visit to Delhi comes amid hectic diplomatic activity spurred by sanctions and tariffs

Russian President Vladimir Putin arrives in New Delhi on December 4 for his tenth visit to the South Asian country against a backdrop of the Ukraine conflict and a tariff and sanctions regime unleashed on the traditional allies by the West.

Putin’s first visit to India since 2021 comes as the South Asian nation seeks to diversify its trade ties following a 50% tariff imposed on it by President Donald Trump, half of which is said by the US to be a punitive measure for purchases of Russian oil.

Imposing the 50% tariff on India, including a 25% levy for Russian oil imports, Trump claimed it helps “funding” for the Ukraine conflict. India has maintained that its oil purchases are solely based on national interests. The US and the EU have also slapped sanctions on Russian oil companies. 

The narrative of Putin’s visit to India is widely expected to focus on defense cooperation, space collaboration, economic ties, $100 billion trade target.

Defense cooperation

Joint production of Sukhoi Su-57 will be on top of the agenda. Deeper military cooperation and technology transfers for air, naval, and missile platforms are also expected to figure in the talks.

Russia’s lower house of parliament, the State Duma, on Monday ratified an agreement on military cooperation. The treaty, which is aimed at streamlining bilateral armed forces drills, rescue and humanitarian efforts, will allow Russia and India to legally deploy troops and equipment to each other’s soil.

India has always been a traditional ally of Russia, and defense cooperation has been a firm pillar of the strategic ties between the two nations. New Delhi has encouraged defense firms from friendly countries, including Russia, to work with domestic manufacturers in sync with the administration’s ‘Make in India’ initiative. In this context, Russian state weapons exporter Rosoboronexport reportedly made a presentation about its functional capabilities to Indian media at the Dubai Airshow.

Russia’s Ambassador to India, Denis Alipov has acknowledged the talks for joint production of the fifth-generation Sukhoi Su-57.

Space collaboration

Russia’s collaboration with India will also include engine building, rocket fuel, piloted spaceflight, and the development of national orbital stations, the head of the Russian space agency, Roscosmos, said .

New Delhi and Moscow have partnered in the space sector since the early 1960s.

In 1984, Rakesh Sharma became the first Indian to travel to space aboard a Soviet Soyuz spacecraft. Russia is also working with India on its upcoming human spaceflight mission, Gaganyaan.

READ MORE: Russia and India will cooperate on a wide front in space – Russian cosmonaut

Economic ties and de-dollarizing

Two days before his visit, Putin announced that Russia is seeking to expand its economic ties with India.

Both countries are keen to link their national payment systems. Moscow is hopeful that they can agree on the mutual recognition of the Mir and RuPay systems. The next step is to pair SBP [Russia’s Faster Payments System] and UPI [India’s United Payments Interface].

Both countries have stepped up the use of the rupee and ruble for trade settlements, with 90% being made in national currencies.

”Whatever can be shared with India, will be shared,” Kremlin spokesman Dmitry Peskov said in a briefing ahead of Putin’s visit.

Facilitating trade

The visit would also promote a platform to facilitate cooperation between private companies. The India-Russia Inter-governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation will also take place amid the Putin-Modi summit.

The forum will explore ways to expand and diversify bilateral trade, including boosting Indian exports of equipment, raw materials, and food products to Russia.

The countries aim to boost bilateral trade to $100 billion by 2030. Indian imports to Russia are currently estimated at $5 billion, while its imports are worth $64 billion. 

Russia is expected to address the growing trade imbalance during the trip after he mentioned at the plenary session of the Valdai discussion club that he had instructed his government to explore ways to fix the imbalance.

Diplomatic overtures

The distinctive personal warmth between Putin and Modi should not be discountted. The two last met at the Shanghai Cooperation Organization (SCO) summit in the Chinese city of Tianjin in September. Putin's visit also signals a return to the tradition of annual high-level summits.

Russian Deputy Prime Minister Denis Manturov has said both sides have thoroughly prepared the agenda for the visit, signalling the importance attached to the ties between the two countries. 

India recently inaugurated two consulates in the cities of Kazan and Ekaterinburg, indicating the growing diplomatic cooperation between the nations.

The Kremlin is also deeply appreciative of India’s stance in the Urkraine conflict. Spokesman Dmitry Peskov has lauded India’s willingness to listen to Moscow’s position on the conflict in Ukraine. 

What the visit means

This is Putin’s first visit to India since the Ukraine conflict escalated in 2022. The trip comes against the backdrop of US sanctions on Russian oil companies and punitive tariffs levied on India for purchases of oil. India’s exports to the US have fallen, though it is still the country’s largest export market. India is negotiating a trade treaty with the US to lower tariffs, while Moscow has pledged to correct trade imbalances. India and Russia will need to tread a fine diplomatic line while negotiating to boost trade, military, and economic ties between the countries.