Russia’s economic ties with India will grow stronger

Significance

Bilateral trade has grown briskly since the breakdown in economic relations between Russia and the West. India is eager to deepen trade and investment ties with Russia, despite strong international pressure to avoid this. It is now the second-largest export market for Russian crude oil.

Impacts

• Moscow will encourage Indian investment in the Russian Far East, but sanctions risks will likely limit investor interest.
• Russia will seek new ways to intensify nuclear energy cooperation and sell natural gas on the Indian market.
• Russia will seek to circumvent Western sanctions through companies registered in India.