Strengthening Ties: Modi and Putin Reaffirm India-Russia Partnership Amid US Tariffs on Russian Oil Imports

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Modi and Putin Signal Stronger Partnership as Trade Tensions wiht U.S. Escalate

September 1,2025

Tianjin,china – A display of deepening collaboration between India and Russia unfolded Monday at the Shanghai Cooperation Association (SCO) summit,as Prime Minister Narendra Modi and President Vladimir Putin held bilateral talks amidst escalating trade friction with the United States.The meeting underscores a potential realignment of geopolitical forces, driven by energy needs and economic pressures.

Strategic Alignment on Display

The leaders convened following the SCO’s primary session, focusing on regional stability, expanding trade opportunities, and strengthening energy collaboration. Modi characterized the partnership with Russia as both “special and privileged,” while Putin reciprocated, referring to Modi as a “dear friend” and praising the longstanding, trustworthy relationship between their nations.

Putin announced plans to visit India in December for the 23rd India-Russia annual summit, as confirmed by his foreign affairs advisor, Yuri Ushakov. Their discourse included acknowledging initiatives towards resolving the ongoing conflict between Russia and Ukraine. “To end the conflict soonest and establish peace permanently, we need to find a way. It’s a call of the entire humanity,” Modi stated.

U.S. Tariffs Fuel Closer Ties

This strengthened bond arrives shortly after the United States imposed additional tariffs-reaching a total of 50%-on Indian imports, responding to India’s continued procurement of discounted Russian oil. Washington has consistently cautioned New Delhi against these purchases, arguing they bolster moscow’s financial capabilities amid the Ukraine war. India maintains its energy imports are crucial for meeting the demands of its vast population of 1.4 billion citizens.

Analysts suggest the U.S.tariff actions are accelerating a shift, driving India toward closer alignment with both China and Russia as a means of countering economic unilateralism. Harsh Pant, Vice President of Foreign Policy at the Observer Research Foundation in New Delhi, explained, “While India-China reengagements started much before Trump, his policies are accelerating a process whereby India seems to be working much more closely with China and Russia to push back against economic unilateralism it is witnessing from the U.S.”

Trade Figures and Future Aspirations

Trade between India and Russia has witnessed considerable growth, reaching a record $68.7 billion in the 2024-25 fiscal year. Russian imports accounted for approximately $64 billion, while exports from India totaled around $5 billion, according to official Indian government data. Both nations are aiming to increase bilateral trade to $100 billion by 2030.

India’s increasing reliance on Russian oil is notable. As of recent data, Russia now supplies around 37% of India’s total oil imports, a meaningful increase from historical levels.This dynamic reflects a broader trend of China and India becoming crucial buyers of Russian energy following Western sanctions.

Country	India’s Oil Import Share (2024)
Russia	37%
Middle East	Historically Dominant, now declining
United States	Fluctuating, relatively small share

A Shifting Global Landscape

The meeting between Putin and Modi, alongside interactions with Chinese President Xi Jinping, signals a complex rearrangement of global power dynamics. The leaders demonstrated visible rapport, with Modi and Putin engaging in a warm embrace and animated conversation alongside Xi. President Trump responded to these developments with critical remarks on social media, labeling the historical U.S.-India trade relationship a “totally one sided disaster” and raising doubts about a future trade deal.

Understanding the shanghai Cooperation Organisation

The Shanghai Cooperation Organisation (SCO) is a Eurasian political,economic,and security organisation founded in 2001 by the leaders of China,kazakhstan,Kyrgyzstan,Russia,Tajikistan,and Uzbekistan. Its primary goals include maintaining regional peace and stability, combating terrorism and extremism, and promoting economic cooperation. Over the years, the SCO has expanded to include India and Pakistan as full members, and has become a significant platform for dialog and cooperation among its member states.

Did You Know? The SCO represents approximately 40% of the world’s population and 28% of global GDP.

Pro Tip: Staying informed about the SCO’s initiatives is crucial for understanding the evolving geopolitical landscape in Eurasia.

Frequently Asked Questions About India-Russia Relations

• What is the primary driver of the strengthening India-Russia relationship? Increased trade, particularly in energy, and shared geopolitical interests are key drivers.
• How have U.S. policies impacted India’s relationship with Russia? U.S. tariffs and criticism of India’s Russian oil purchases have arguably pushed India closer to Russia.
• What are the key goals of the Shanghai Cooperation Organisation? The SCO aims to promote regional security, combat terrorism, and foster economic cooperation among its member states.
• What is the current trade volume between India and Russia? Bilateral trade reached a record $68.7 billion in the 2024-25 fiscal year.
• What are the future trade aspirations between India and Russia? Both nations aim to increase bilateral trade to $100 billion by 2030.
• How significant is russia’s share of India’s oil imports? Russia currently supplies around 37% of India’s total oil imports.
• What was President trump’s reaction to the SCO summit? Trump criticized the U.S.-India trade relationship and expressed skepticism about a future trade deal.

What are your thoughts on the evolving geopolitical landscape? Share your opinions in the comments below!

How might the expansion of trade into sectors beyond oil and defense – such as technology and agriculture – affect India’s strategic autonomy regarding its relationship with Russia, notably in the context of US sanctions?

The Resilience of the India-Russia Strategic Partnership

Despite escalating pressure from the United States, including secondary tariffs on Russian oil imports, India remains steadfast in its commitment to a strong strategic partnership with Russia.This continued collaboration, highlighted by recent reaffirmations from both Prime Minister Narendra Modi and President Vladimir Putin, underscores a complex geopolitical reality driven by mutual benefit and long-standing ties.The relationship extends far beyond energy, encompassing defense, technology, and diplomatic alignment.This article delves into the key factors driving this resilience, the implications of US tariffs, and the future trajectory of India-Russia relations.

Understanding India’s Position: Why Russia Matters

New Delhi’s decision to maintain close ties with Moscow isn’t simply a matter of historical allegiance. Several compelling factors are at play:

Energy Security: Russia is a crucial supplier of crude oil to India, providing a significant portion of its energy needs. Diversifying energy sources is a priority for India, but replacing Russian oil quickly and affordably is a considerable challenge.

Defense Cooperation: Russia has been, and continues to be, a primary provider of military equipment to India. This includes critical systems like the S-400 air defense system and ongoing collaborations in aircraft carrier technology and submarine growth. Switching to alternative suppliers woudl require significant time and investment.

Geopolitical Considerations: India pursues a policy of strategic autonomy, resisting pressure to align exclusively with any single power bloc. Maintaining a relationship with Russia allows india to navigate a multi-polar world and safeguard its national interests.

Economic Benefits: Beyond oil, trade between india and Russia is expanding, including areas like fertilizers, coal, and agricultural products. The Rupee-Ruble trade mechanism, designed to bypass Western financial systems, further strengthens economic ties.

The impact of US Secondary Tariffs

The US has implemented secondary sanctions aimed at discouraging countries from trading with Russia, particularly concerning oil. These tariffs are designed to limit russia’s revenue stream and weaken its ability to finance the war in Ukraine. However, the impact on India is nuanced:

Increased Costs: The tariffs inevitably increase the cost of Russian oil for Indian refiners, potentially impacting consumer prices.

Trade Adjustments: india is actively exploring strategies to mitigate the impact of tariffs, including negotiating favorable terms with Russia and optimizing its refining processes.

Diplomatic Tensions: The tariffs have created some friction in India-US relations, with India emphasizing its sovereign right to determine its energy policy.

Alternative Payment Mechanisms: The continued use and refinement of the Rupee-Ruble trade mechanism are crucial for circumventing US dollar-denominated transactions and minimizing the impact of sanctions.

Key Areas of India-Russia Cooperation

The India-Russia partnership extends beyond energy and defense. Here’s a breakdown of key collaborative areas:

Defense: Ongoing joint military exercises,technology transfer agreements,and co-production of military hardware. The BrahMos missile system, a joint venture, is a prime example of successful defense collaboration.

Nuclear Energy: Russia is assisting India in the construction of nuclear power plants, contributing to India’s clean energy goals.

Space exploration: Collaboration in space research and technology,including joint missions and satellite launches.

Arctic Cooperation: India is increasing its engagement in the Arctic region, with Russia as a key partner, focusing on scientific research and resource exploration.

Transportation & Infrastructure: Discussions are underway regarding the development of the International North-South Transport Corridor (INSTC), a multi-modal transportation route connecting india, Russia, and Europe.

Navigating the Future: Challenges and Opportunities

The India-Russia relationship faces several challenges in the coming years:

Western Pressure: Continued pressure from the US and its allies to reduce ties with Russia.

Geopolitical Shifts: The evolving global landscape and the potential for further escalation in Ukraine.

Economic Volatility: Fluctuations in oil prices and the impact of sanctions on the Russian economy.

However, significant opportunities also exist:

expanding Trade: Diversifying trade beyond oil and defense, focusing on areas like technology, agriculture, and pharmaceuticals.

Strengthening the Rupee-Ruble Trade: Enhancing the efficiency and scalability of the Rupee-Ruble trade mechanism.

Joint Development Projects: Collaborating on infrastructure projects, such as the INSTC, to boost connectivity and trade.

Technological Innovation: Joint research and development in emerging technologies, such as artificial intelligence and cybersecurity.

Case Study: The S-400 Deal and US Response

The purchase of the S-400 Triumf air defense system from Russia triggered sanctions threats from the US under the Countering America’s Adversaries Through Sanctions Act (CAATSA). Despite these threats, India proceeded with the deal, citing its national security interests. This case demonstrates India’s willingness to prioritize its strategic autonomy, even in the face of US pressure. The US ultimately waived full sanctions, recognizing the importance of the broader India-US strategic partnership, but the incident highlighted the potential for future friction.[https://foreignpolicycom/2025/08/15/india[https://foreignpolicycom/2025/08/15/india