Vladimir Putin orders government to soften trade imbalance with India

Russian President Vladimir Putin has expressed keen anticipation for his upcoming visit to India in early December and has directed the Russian government to explore measures to address the trade imbalance with India, which has widened due to New Delhi’s heavy crude imports from Moscow.

Speaking at the Valdai Discussion Forum in Sochi — a gathering of security and geopolitical experts from 140 countries, including India — on Thursday evening, Putin emphasised the long-standing, tension-free relationship between Russia and India.

"We have never had any problems or interstate tensions with India. Never," Putin said, highlighting the “special” nature of Russia-India relations that dates back to the Soviet era when India was fighting for its Independence. He added that India remembers and values this historical bond, which Russia deeply appreciates.

Putin also referred to Prime Minister Narendra Modi as a personal friend and described their interactions as built on trust. He praised India’s nationalist government led by Modi, calling the prime minister “balanced, wise, and nationally oriented”, and acknowledged India’s sovereign decision to continue crude imports from Russia despite pressure from the United States.

"The losses faced by India due to punitive US tariffs would be balanced by crude imports from Russia, plus it will gain prestige as a sovereign nation," Putin remarked.

To help ease the trade imbalance, Putin indicated that Russia may increase purchases of Indian agricultural products and medicines. He stated, "More agricultural products may be purchased from India. Certain steps can be undertaken from our side for medicinal products, pharmaceuticals."

While noting the vast potential for economic cooperation between the two countries, Putin acknowledged that several challenges remain, including financing, logistics, and payment bottlenecks, which must be addressed to fully unlock opportunities.

The Russian president also recalled that the strategic privileged partnership between India and Russia will soon mark its 15th anniversary, emphasising its significance. He stressed that political relations between the two countries are closely coordinated, with foreign ministries maintaining close collaboration.

Additionally, Putin welcomed the idea of a joint fund for developing artificial intelligence and other advanced technologies, proposed by Dr Arvind Gupta, director general of the Vivekananda International Foundation (VIF) in New Delhi, who was present at the forum.

With PTI inputs