Russia All For "Architecture" To Strengthen Trade Ties With India, Jacked Up By Third Countries

New Delhi: Russia on Tuesday pitched for creating an "architecture" to insulate its trade ties with India from pressure by third countries, and said New Delhi's procurement of Russian crude oil may decline for "a brief period" in view of western sanctions.However, Moscow is taking steps to enhance the supplies, Kremlin spokesperson Dmitry Peskov said in a video-streamed news conference ahead of Russian President Vladimir Putin's visit to New Delhi for the annual summit with Prime Minister Narendra Modi.

He said that addressing India's concerns over massive trade deficit, cooperation in small modular nuclear reactors and expanding defence and energy ties could be among the focus areas during the summit talks on Friday.Putin, who arrives on Thursday, will hold talks with Modi during which a plethora of significant outcomes are expected, including in the trade and defence spheres, to further solidify the bilateral strategic ties.

The Russian leader's trip to India is taking place at a time when India-US relations are going through possibly the worst phase in the last two decades after Washington imposed a whopping 50 per cent tariff on Indian goods, including 25 per cent levies for New Delhi's procurement of Russian crude oil.On India gradually bringing down purchase of Russian crude oil following US sanctions on two Russian firms, Peskov said the decline could be for a very "brief period" and Russia is confident of averting the impact of the Western restrictions.

"There are sanctions against the Russian oil production sector, but we are finding ways not to let the volume of trade go down."We have deep experience in performing under the regime of these illegal sanctions," Peskov said.The Kremlin spokesperson also called for creating a mechanism to insulate India-Russia trade and energy ties from pressure from third countries, in an apparent reference to western sanctions.

"We should create an architecture of our relationship that must be free of any influence coming from any third countries."We have to secure our relationship; we have to secure our trade that brings mutual benefit. We have to secure our trade from pressure from abroad," he said.The Kremlin spokesperson also called for a new system of global trade where the payment system (Dollar denominated trade) is not used as a "political tool".

Peskov indicated that putting in place a mechanism for settling trade in national currencies, avoiding the US dollar dominated system, may figure in Modi-Putin talks."We understand the pressure on India," he said, referring to the US.Peskov also said that Russia is fully aware of India's concerns about the massive trade deficit, and it is working to fix "the problem"."There is a real imbalance in our trade. We are aware of that. We are selling much more than we buy from India," he said.

"We know that our Indian friends are concerned about that. We are jointly looking at possibilities of increasing imports from India. We want to buy more from India," he said.India has been concerned about the increasing trade deficit in Russia's favour.India's procurement of goods and services from Russia amounts to around USD 65 billion while Russia's imports from India stand at around USD 5 billion.

To a question on Russia's "limitless" friendship with China, Peskov said Moscow wants the same level of relationship with New Delhi as well. "We are ready to go as far as India is ready. We are ready to develop our cooperation with India in every possible field." Peskov said Russia respects bilateral ties between India and China and hoped that both the countries are capable of resolving their issues in order to keep global stability and peace.The Kremlin spokesperson, referring to India-Russia defence ties, highlighted the joint production of BrahMos missiles and described the venture as an example of the exchange of high technologies.

"We are developing quite a variety of very complicated systems. We are ready to share with India our experience," he said.Peskov said cooperation in areas of small and medium nuclear reactors is expected to feature in talks between Modi and Putin.Russia has experience in producing these small reactors and is ready to supply the technology to India, he said.Peskov praised the latest mediation efforts by the US to end the Ukraine war "as very effective".

"We hope it will succeed. We are ready to contribute to it," he said hours before US negotiator Steve Witcoff was scheduled to meet Putin.Peskov indicated that the Russia-Ukraine conflict will feature prominently at the Modi-Putin summit."Russia is open for peaceful negotiation, we have to reach our goals."We appreciate the position of India. We appreciate the readiness of New Delhi to look for a peaceful solution. We respect the position of Prime Minister Modi," he said. 

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