Post by : Rameen Ariff

Russian President Vladimir Putin begins his first trip to India in four years on Thursday, marking a significant moment in Russia-India relations at a time when the United States is urging New Delhi to reduce its energy purchases from Moscow. Putin is accompanied by senior executives from major Russian companies, including top leaders of Sberbank, signalling Moscow’s intent to boost economic cooperation.

Russia’s largest lender, Sberbank, is working to expand industrial imports from India and support labour migration to Russia. First Deputy CEO Alexander Vedyakhin said the bank is helping Russian clients explore India’s fast-growing machine-building, pharmaceutical, and IT sectors. He noted that Indian products can be purchased using rupees earned from India’s heavy energy imports from Russia.

Bilateral trade between the two countries is currently valued at around $70 billion, but it remains highly imbalanced. India imports large volumes of Russian crude oil, while India’s exports to Russia lag far behind. This gap makes it challenging for both nations to fully implement settlements in national currencies. Still, Vedyakhin said Sberbank is supporting more than 6,000 Indian firms that are new to trading with Russia, helping them understand the process of exporting products directly.

India previously exported tea, clothing, and hygiene goods to the Soviet Union during the Cold War era. Today, Russia aims to rebuild that relationship by diversifying imports and tapping into India’s strength in technology, manufacturing, and pharmaceuticals. Vedyakhin said Sberbank is guiding Russian companies toward Indian industries that can offer strong alternatives at competitive prices.

Russia and India have set a target to raise bilateral trade to $100 billion. Progress toward this goal is already underway, with Russia’s central bank recently opening an office in Mumbai to support Russian financial operations. According to Vedyakhin, most payments from Russia to Indian companies are already being conducted in national currencies, particularly rupees. He stressed that U.S. pressure on India has not affected the bank’s operations, as rupee-rouble payments continue smoothly. Rupee accounts at Sberbank’s Indian branch have increased 3.5 times this year.

Sberbank operates offices in New Delhi and Mumbai and runs an IT hub in Bengaluru. The bank has also introduced faster transaction systems for Indian goods through deferred payment mechanisms, making cross-border trade easier for businesses in both nations.

Another major area of cooperation highlighted by Vedyakhin is labour migration. Russia is facing record-low unemployment and is expected to have a shortage of nearly 3 million workers by 2030. This has created strong demand for skilled Indian labour across various sectors. Vedyakhin said Russian companies see Indian workers as a reliable and skilled workforce and that Sberbank is helping businesses bring workers from India to fill critical gaps.

Putin’s visit is expected to deepen long-standing ties between New Delhi and Moscow, which share decades of political, defence, and economic cooperation. Despite shifting global alliances and geopolitical pressure, both nations are moving forward with new areas of partnership—from energy and trade to finance and workforce development.

As the visit gets underway, India and Russia are set to discuss expanding local-currency trade, boosting industrial cooperation, and strengthening labour mobility—all key elements of a future-focused partnership.

#Global News #Market