Finance
Putin, Modi agree to expand and widen India-Russia trade, strengthen friendship
Published by Global Banking & Finance Review®
Posted on December 5, 2025
4 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 5, 2025
4 min readLast updated: January 20, 2026
Putin and Modi discuss expanding India-Russia trade and defense ties, with a focus on uninterrupted fuel supplies and geopolitical challenges.
By Shivam Patel and YP Rajesh
NEW DELHI, Dec 5 (Reuters) - Russian President Vladimir Putin offered India uninterrupted fuel supplies on Friday, eliciting a cautious response even as he and Indian Prime Minister Narendra Modi agreed to expand trade and defence ties between countries with decades-old ties.
India, the world's top buyer of Russian arms and seaborne oil, has rolled out the red carpet for Putin during his two-day state visit, his first to New Delhi since Russia's invasion of Ukraine in 2022.
But New Delhi is also in talks with the U.S. on a trade deal to cut punitive tariffs imposed by President Donald Trump on its goods over India's purchases of Russian oil. India's energy imports are expected to fall to a three-year-low this month following U.S. tariffs and sanctions. Deputy U.S. Trade Representative Rick Switzer is still slated to travel to India on Monday, two U.S. officials said on Friday.
Russia has said it wants to import more Indian goods in an effort to grow trade to $100 billion by 2030.
INDIA CAUTIOUS ON OIL IMPORTS
Putin said Moscow was ready to continue ensuring "uninterrupted fuel supplies" to India, following up on comments on Thursday questioning U.S. pressure on India to curb oil purchases from Russia.
India appeared cautious about the offer.
Asked about the future of energy trade between the two countries, India's foreign secretary said Indian energy companies take decisions based on "evolving market dynamics" and "commercial issues that they confront while sourcing their supplies", indicating the pressures of sanctions and prices.
Energy cooperation between the two countries continues within this framework, Vikram Misri told a media briefing.
Underlining this caution, Indian state refiners Indian Oil Corp and Bharat Petroleum Corp have placed January orders for the loading of Russian oil from non-sanctioned suppliers due to widening discounts, Reuters reported on Friday.
TIES HAVE 'STOOD TEST OF TIME', SAYS MODI
Describing India's enduring partnership with Russia as "a guiding star", Modi said: "Based on mutual respect and deep trust, these relations have always stood the test of time."
"...we have agreed on an economic cooperation programme for the period up to 2030. This will make our trade and investment more diversified, balanced, and sustainable," he told reporters, with Putin by his side.
Modi, who warmly embraced Putin on the airport tarmac when he arrived on Thursday, also reiterated India's support for a peaceful resolution to the war in Ukraine.
A joint statement issued following the summit said: "The leaders emphasized that in the current complex, tense, and uncertain geopolitical situation, Russian-Indian ties remain resilient to external pressure."
21-GUN SALUTE
Putin received a ceremonial welcome on Friday on the forecourt of Rashtrapati Bhavan, the colonial-era presidential palace, with a 21-gun salute as his convoy drove in.
A large business and government delegation has accompanied Putin. Among the deals signed, the two countries agreed to help Indians move to Russia for work, to set up a joint venture fertiliser plant in Russia, and boost cooperation in agriculture, healthcare and shipping.
They also agreed to reshape their defence ties to take account of New Delhi's push for self-reliance through joint research and development, as well as the production of advanced defence platforms. This would include joint production in India of spare parts, components, assemblies, and other products for servicing Russian weapons and military equipment.
PUTIN QUESTIONS WASHINGTON
In an interview with broadcaster India Today aired on Thursday, Putin challenged U.S. pressure on India not to buy Russian fuel.
"If the U.S. has the right to buy our (nuclear) fuel, why shouldn't India have the same privilege?" he said, adding that he was ready to discuss the matter with Trump.
India has said Trump's tariffs are unjustified and unreasonable, noting continued U.S. trade with Moscow. The U.S. and European Union still import billions of dollars worth of Russian energy and commodities, ranging from liquefied natural gas to enriched uranium, despite economic sanctions.
(Reporting by Shivam Patel and YP Rajesh; Additional reporting by Sakshi Dayal, Tanvi Mehta and Vladimir Soldatkin; Editing by Peter Graff, Kate Mayberry, Gareth Jones and Philippa Fletcher)
Investment is the act of allocating resources, usually money, in order to generate income or profit. It can take various forms, including stocks, bonds, and real estate.
A joint venture is a business arrangement where two or more parties agree to pool their resources for a specific project or business activity, sharing profits and risks.
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