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Putin and Modi develop India-Russia financial ties in talks in New Delhi
The Tycoon Herald > World > Putin and Modi develop India-Russia financial ties in talks in New Delhi
World

Putin and Modi develop India-Russia financial ties in talks in New Delhi

Tycoon Herald
By Tycoon Herald 8 Min Read Published December 5, 2025
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On this pool {photograph} distributed by the Russian state company Sputnik, Russia’s President Vladimir Putin and Indian Prime Minister Narendra Modi stroll previous to an off-the-cuff dinner at Modi’s residence in New Delhi on Thursday, the primary day of the Russian chief’s two-day state go to to India.

ALEXANDER KAZAKOV/POOL / AFP by way of Getty Pictures


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ALEXANDER KAZAKOV/POOL / AFP by way of Getty Pictures

MUMBAI, India — There was a hug and selfie in a limousine trip after Indian Prime Minister Narendra Modi personally picked up Russian President Vladimir Putin on arrival within the capital New Delhi on Thursday night. Devotional lamps spelled out “Welcome Putin” throughout a night prayer on the Ganges River that was shared on-line. There was an honor guard and a brass band.

India was warmly welcoming Putin for his first go to since his nation invaded Ukraine practically 4 years in the past. The go to partially signaled India’s defiance to the Trump administration, which has punished, and publicly humiliated, New Delhi for its purchases of Russian oil.

Reliance Industries' oil refinery in Jamnagar, India, is a network of metal towers, pipes and tanks in this photo. In the foreground, two men ride a motorbike on a road.

“The message first and foremost is that India has options,” mentioned Chietigj Bajpaee, senior analysis fellow for South Asia at Chatham Home. “It is an effort to reaffirm the India-Russia relationship at a time when India has been under growing pressure to sever that relationship, or at least downgrade it in some ways.”

India has lengthy prided itself on its impartial international coverage, however grew near Russia many years in the past, when it was the dominant a part of the Soviet Union. The coverage got here in response to a way of being cornered on its northern borders: Pakistan firmly allied itself with the U.S., and within the early Nineteen Seventies, facilitated a gap in relations between Washington and Beijing. India and China share greater than 2,000 miles of disputed border throughout the Himalayas.

The 2-day assembly that started Thursday in New Delhi was a boon to Putin, whose travels have been largely curtailed for the reason that Worldwide Legal Court docket issued an arrest warrant in opposition to him in March 2023. “To visit the world’s largest democracy and a large country like India, will bring him enormous global attention in that sense,” mentioned Swaran Singh, who writes on worldwide relations.

After a bilateral assembly on Friday, the place each side introduced a deal to permit extra Indian nationals to work in Russia, Putin mentioned in ready statements by means of a translator that his nation was “ready to continue uninterrupted shipments of fuel for the fast growing Indian economy.”

Russian oil in focus

India had ramped up its buying of Russian oil after the invasion of Ukraine, and is now one of many world’s greatest consumers. It additionally sells Russian oil merchandise onwards.

However Indian corporations curbed their purchases of Russian oil in current weeks, after the Trump administration punitively doubled its tariffs on India to 50% and American sanctions have been imposed on Kremlin-linked Russian oil producers.

A Kashmiri man walks past a shop displaying stone jewelry and Kashmiri handicrafts in Srinagar, in Indian-controlled Kashmir.

Most prominently, India’s greatest importer of Russian crude oil, Reliance Industries stopped buying Russian crude oil for its export merchandise, Reuters reported in late November. That was to stay in compliance with a new European Union ban on imports of refined merchandise made out of Russian crude from some third international locations, together with India.

It’s unclear how Putin can proceed uninterrupted shipments of gasoline to India amid sanctions and tariffs. However the Finnish-based Centre for Analysis on Power and Clear Air experiences there was a rise in sanctions-avoiding conduct by vessels transport Russian oil on the excessive seas, partially by means of flying flags which have been fraudulently obtained to hide their operations. Beforehand India has described the strain to chop its purchases of Russian oil as “unreasonable,” noting that each the European Union and america additionally buy Russian power merchandise.

Treading a high-quality line

India has been stepping up purchases of U.S. oil and pure fuel — which some analysts have interpreted as a sop to the Trump administration — and, to slim its commerce deficit with the U.S., additionally sought to buy extra U.S. power merchandise.

“India is navigating a difficult path,” mentioned Bajpaee of Chatham Home. “It’s trying to maintain close relations with Moscow and at the same time deepen engagement with the West.”

Maybe to that finish, within the Indian prime minister’s ready statements, he nodded to Russia’s invasion, describing it as “the state of affairs in Ukraine.” He added, “We welcome all efforts being made for a peaceful and lasting resolution in this matter. India has always been, and will always be ready to contribute.”

It wasn’t clear, nevertheless, if Modi was referring to the Trump administration’s present efforts to finish the struggle. On Tuesday, Trump’s particular envoy Steve Witkoff and son-in-law Jared Kushner met with Putin and his group for 5 hours. However Putin advised the information outlet India Right this moment on Thursday that “we can’t agree to” a few of the administration’s proposals, with out giving additional particulars. When pressed on the matter throughout the identical interview, he mentioned by means of a translator: “I doubt it would interest you to hear about it as it lasted five hours. … Five hours is too much.”

Russia and India inked some offers throughout Putin’s go to, together with one that might facilitate extra Indians to work in Russia. There have been vows that commerce between the 2 would quickly attain $100 billion — up to now the commerce is generally one-way, and is dominated by India’s purchases of Russian fossil fuels.

And but, the U.S. stays a much more forward-looking and essential relationship, mentioned Bajpaee of Chatham Home. “Russia remains a key strategic partner. India does not want to sever that relationship with Moscow and it particularly doesn’t want to do that under U.S. or Western pressure,” he mentioned. “But the direction of travel, I would argue, is towards a managed decline.”

He famous, regardless of the tensions between India and the U.S. beneath the Trump administration, “there’s very strong linkages and functional cooperation between India and the U.S. So despite the bad blood, India conducts more joint military exercises with the U.S. than with any other country. They’ve conducted five military exercises just this year.”

Even so, Bajpaee mentioned, “From New Delhi’s perspective, recent developments have shown that if anything Russia is in some ways a more reliable partner compared to the U.S.’ fickle and sometimes unpredictable behavior.” 

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