External Affairs Minister S. Jaishankar began a key three-day visit to Moscow on Tuesday. He will co-chair the 26th Session of the India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation on Wednesday and hold talks with his Russian counterpart Sergey Lavrov.
The talks are expected to reinforce the India-Russia “Special and Privileged Strategic Partnership,” a term both nations continue to emphasize despite growing Western scrutiny.
The visit is especially crucial for India’s economic diplomacy. A high-level delegation of Indian officials, including senior trade representatives, is on its way to Moscow to discuss expanding trade ties and explore mechanisms for local currency settlement.
A central point of the agenda will be advancing negotiations on a long-pending Free Trade Agreement between India and the Eurasian Economic Union (Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia).
“The aim is to make progress on multiple economic fronts and ensure more balanced trade,” a source familiar with the talks said. “India is expected to underline its interest in narrowing the trade deficit with Russia, while also strengthening long-term cooperation.”
Bilateral trade between the two nations soared to an all-time high of $68.7 billion in FY25, a six-fold increase from pre-pandemic levels. However, the trade remains heavily slanted, with Indian exports accounting for just $4.88 billion and imports from Russia exceeding $63 billion, mainly driven by oil and fertiliser.
With Washington set to impose punitive tariffs on Indian exports starting August 27, totalling 50 per cent, including a 25 per cent surcharge specifically linked to India’s Russian dealings, Jaishankar’s Moscow mission has taken on heightened geopolitical and economic significance.
Incidentally, Prime Minister Modi and Putin will be at the SCO summit in Tianjin, China, at the end of August. It will be an opportunity to review the bilateral track and of course the course of negotiations on ending the Ukraine war. The Russian leader is also expected to visit India later this year for the annual dialogue.
