Russian President Vladimir Putin began a two-day visit to India on Thursday, seeking to deepen defence and energy cooperation with New Delhi at a time when global sanctions, shifting oil markets and geopolitical tensions have altered the dynamics of the long-standing partnership.
The visit marks Putin’s first trip to India in four years and underscores Moscow’s interest in restoring momentum in bilateral relations that have slowed due to Western pressure, especially after Russia’s invasion of Ukraine in February 2022.
Russia seeks new deals in defence and energy
Russia has been one of India’s most significant defence suppliers for decades, with a strong legacy of collaboration in missiles, fighter jets and other military platforms. Moscow is now pitching for new sales, including advanced missile systems and aircraft, as it aims to reinforce its defence presence in the Indian market.
India also emerged as Russia’s top buyer of seaborne crude after sanctions hit Moscow’s access to Western customers. However, India’s crude imports from Russia are expected to fall to a three-year low this month, partly due to tightened sanctions and the rise in India’s oil purchases from the United States.
Putin is accompanied by Defence Minister Andrei Belousov and senior leaders from Russian banking, oil, arms and industrial sectors, signalling a broad agenda covering defence, infrastructure, energy, shipping and agriculture.
“Putin’s visit offers an opportunity for Delhi to reassert the strength of its special relationship with Moscow and make headway in new arms deals,” said Michael Kugelman of the Atlantic Council. He added that fresh initiatives were likely, even if they focused on easily achievable areas in bilateral ties.
U.S. pressure complicates India’s options
A major concern for Indian officials is the potential reaction of U.S. President Donald Trump, whose administration doubled tariffs on Indian goods to 50% in August in retaliation for India’s purchases of Russian crude. New defence or energy deals with Moscow could risk further trade friction at a time when India is seeking to finalise a U.S. trade agreement before year end.
India’s strategic balancing has become more complex as it tries to maintain strong ties with both Washington and Moscow. While India has slowed Russian oil imports in recent months, widening discounts have attracted some state refiners back to the market.
Trade, nuclear energy and financial cooperation on agenda
Officials from both sides held preliminary discussions ahead of the visit on a wide set of issues, including shipping, agriculture and defence procurement. In August, India and the Eurasian Economic Union agreed to begin talks for a free trade agreement, an initiative expected to be revisited during the summit.
The two nations are also exploring expanded cooperation in civilian nuclear energy projects, according to Indian analysts.
Putin’s delegation includes the heads of major Russian entities such as Sberbank, Rosoboronexport, Rosneft and GazpromNeft, some of which remain under Western sanctions. With a large portion of bilateral trade now conducted in rupees, Sberbank has expressed interest in investing these holdings in Indian infrastructure projects. The bank has also begun extending rupee loans to Russian exporters and local units to boost sales of Russian products in India.
Negotiations over oil assets
Industry sources said Moscow is expected to seek India’s help in accessing technical equipment for its oil fields, where sanctions have restricted the supply of specialised machinery from Western companies.
India, for its part, is expected to push for the restoration of ONGC Videsh Ltd’s 20% stake in the Sakhalin-1 project in Russia’s Far East. The stake became uncertain when sanctions affected project operations and ownership structures.
New Delhi hopes to conclude a trade agreement with the United States by the end of the year, even as it navigates a complex economic and diplomatic landscape involving competing pressures from global powers.
Putin’s visit is expected to culminate in a series of agreements and announcements aimed at stabilising and upgrading ties between the two long-standing partners.