Moscow: Energy, defence & trade to dominate Modi-Putin dialogues

New Delhi: At President Vladimir Putin’s request, Prime Minister Narendra Modi travelled to Moscow on Monday for a two-day stay to take part in the 22nd India-Russia Annual Summit. Modi’s first trip to Russia since the nation’s invasion of Ukraine in February 2022 is expected to cover a wide spectrum of complex bilateral relations as well as current, mutually beneficial regional and international concerns.

While the Ministry of External Affairs of India has indicated that the talks will cover a wide range of topics, including connectivity, trade, economic, and investment cooperation, energy and defence cooperation will be high on the agenda for the talks between the two leaders.

First, India is a crucial energy partner for Russia, with its oil purchases helping to stabilise the Russian economy amid Western sanctions over the war in Ukraine. With limited options due to West Asian oil being diverted to the European market, India has increasingly relied on Russian oil. India has a long history of energy collaboration with Russia. In 2001, ONGC Videsh Limited invested $1.7 billion for a 20 per cent stake in the sprawling Sakhalin-1 oil field in the Russian Far East, with production starting in 2006. Before the Ukraine crisis, Sakhalin-1 produced 220,000 barrels of oil daily, with ONGC selling its share mostly on the international market. Additionally, India has invested billions of dollars in the Russian oil and gas sector. Defence cooperation remains a critical pillar of the India-Russia strategic partnership, guided by the Agreement on the Programme for Military-Technical Cooperation (2021-2031). Current bilateral projects include the licensed production of T-90 tanks and Su-30 MKI aircraft, the supply of Mig-29K and Kamov-31 aircraft, and the upgrade of Mig-29 aircraft.

A significant point of discussion will be the delayed delivery of the S-400 Triumf air defence system, which India procured from Russia in 2018. Known for its capability to intercept various types of aerial threats from 2 km to 400 km, the S-400 is a crucial component of India’s defence strategy against potential threats from neighbouring countries. Military-technical cooperation between India and Russia dates back to the 1960s, with India acquiring a wide range of weapons and military equipment from Russia.

Also, Indian government officials acknowledge that the trade imbalance remains a major issue that needs to be addressed, and it is likely to be discussed during PM Modi’s visit. New areas of export from India include agricultural and processed food products, automobile components, engineering goods, and pharmaceuticals.

This visit marks Modi’s first visit to Russia in nearly five years, with his last being in 2019, when he attended an economic conclave in Vladivostok. According to figures from the Department of Commerce, bilateral trade between India and Russia reached an all-time high of $65.70 billion in FY 2023–24.

Major items exported from India Prime Minister Modi’s visit to Russia underscores the importance of strengthening bilateral ties, particularly in energy and defence cooperation, amid evolving geopolitical landscapes.