Modi and Putin Urge Officials to Expedite Investment Promotion Agreement Negotiations

India and Russia have urged their officials to expedite discussions on a mutually beneficial investment agreement. This topic was addressed during a summit meeting between Prime Minister Narendra Modi and Russian President Vladimir Putin. The leaders also highlighted the importance of current and future collaborations in the energy sector.

The joint statement released after the meeting noted the ongoing efforts to finalise a free trade agreement between India and the Eurasian Economic Union (EAEU). This agreement aims to cover sectors of shared interest. Both sides were instructed to accelerate negotiations for an investment promotion and protection agreement.

Focus on Trade and Economic Cooperation

India and the EAEU, which includes Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan, began their first round of free trade pact negotiations last week in New Delhi. On August 20, they signed the terms of reference for this agreement. Modi and Putin agreed to enhance bilateral trade sustainably by boosting India's exports to Russia.

The trade between India and Russia is currently valued at nearly USD 70 billion, with a significant imbalance favouring Russia due to India's crude oil imports. Last fiscal year, India faced a trade deficit of approximately USD 59 billion with Russia.

Addressing Trade Barriers

The joint statement emphasised the need to tackle tariff and non-tariff barriers, improve logistics, promote connectivity, ensure smooth payment systems, and resolve insurance-related issues. These steps are crucial for achieving the revised bilateral trade target of USD 100 billion by 2030.

Both nations have agreed to continue developing bilateral settlement systems using national currencies. This approach aims to maintain uninterrupted bilateral trade between India and Russia.

Energy Sector Collaboration

The energy partnership was another focal point of discussions. Both countries commended their extensive cooperation in this sector, considering it a vital component of their strategic partnership. They acknowledged existing and potential collaborations in oil production, refining technologies, petrochemicals, LNG infrastructure, and more.

India and Russia also plan to deepen cooperation in creating stable transport corridors. They aim to expand logistics links to improve connectivity and enhance infrastructure capacity for projects like the International North-South Transport Corridor (INSTC) and the Chennai-Vladivostok Eastern Maritime Corridor.

Enhancing Transport Links

The two countries welcomed the signing of a Memorandum of Understanding (MoU) on training specialists for ships operating in polar waters. This initiative is part of their broader effort to strengthen transport links.

Overall, India and Russia are committed to enhancing their economic ties through strategic partnerships in trade, energy, and transportation. Their collaborative efforts aim to create a balanced and sustainable relationship that benefits both nations.

With inputs from PTI