The expert named the reasons for the increase in trade turnover between Russia and India

The trade turnover between Russia and India has grown significantly in recent years, but the main reason for this growth was the export of Russian energy products, primarily oil. Igor Yushkov, a leading analyst at the National Energy Security Fund, an expert and lecturer at the Financial University under the Government of the Russian Federation, shared this opinion with Izvestia on March 12.

Earlier in the day, RIA Novosti reported from calculations by the Indian Ministry of Trade and Industry that the trade turnover between Russia and India exceeded a record $70 billion last year, an increase of 9% over the year.

"The trade turnover has really grown, but we must understand that these are mainly exports from Russia to India, primarily energy products. India is now the second largest buyer of Russian oil and the largest buyer of our oil, which is transported by sea," Yushkov explained.

According to him, most of the oil that was previously supplied to Europe and the United States is now sent to India, which buys about 1.7–1.8 million barrels per day, some of which is used for domestic consumption, and the other is exported, including to the United States and Europe.

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The possible lifting of the ceiling on our fuel will increase its competitiveness and simplify negotiations with importers.

The expert also drew attention to the fact that the sanctions do not prohibit the supply of petroleum products produced from Russian oil in third countries, since if oil products are produced from Russian oil in India, they can be supplied anywhere, and they are not considered Russian.

In addition to oil, Russia supplies India with coal, including coking coal, which is used in metallurgy, as well as other goods. However, the main share of exports is oil and petroleum products. The specialist also said that the increase in trade turnover in 2024 is associated with a decrease in discounts on Russian oil.

"In 2023, the discounts were significant, but by 2024 they had decreased, which led to an increase in the cost of oil and, consequently, an increase in trade turnover. If oil prices remain low, trade turnover with India may decrease not because of a decrease in supply volumes, but because of a decrease in the cost of oil," Yushkov summed up.

On February 11, Russian Deputy Prime Minister Dmitry Patrushev announced that the trade in agricultural products between Russia and India increased by more than 60% in 2024. According to him, trade in agricultural products and foodstuffs between Russia and India is growing rapidly. In addition, the Deputy Prime Minister noted that the Russian Federation intends to continue developing trade relations with India.

Prior to that, on November 7, 2024, Russian President Vladimir Putin announced that the country was ready to increase oil and gas supplies to India. He also added that Russia is developing relations with India in all directions.