Indian Ambassador in Russia: New Delhi is looking to continue increasing oil, coal and fertilizer imports from Moscow to support its high pace of economic growth

Vinay Kumar, Ambassador of India to Russia at a panel session of the Eastern Economic Forum in Vladivostok on September 5, 2024.
Photo: RIA Novosti

India will boost volumes of Russian oil import by 2030 in accordance with goals on trade turnover with Russia that have been set by the two countries’ leaders, India’s ambassador to Russia Vinay Kumar told TASS on the sidelines of the Eastern Economic Forum (EEF).

"The target that the two leaders have set for bilateral trade is $100 billion by 2030. So we are looking to reach that target of bilateral trade which means that it has to increase," he said when asked whether India plans to expand Russian oil import.

India will also increase the volumes of export of spare car parts and pharmaceuticals to Russia, the diplomat added.

"We are looking not only to increase imports from Russia of the commodities that are required in India, but also to increase exports from India of pharmaceuticals, food products, auto components, ceramic tiles, engineering goods, leather and footwear products, all of which Russia imports in big quantities. So the market is available. Our work is to work hard to make Russian consumers buy Indian products," he said.

The two countries are also working on new systems of message exchange between banks, which is expected to create a basis for predictable trade and help reach the targets set by the leaders of the two countries during their meeting in Moscow, the ambassador noted.

Russia remains India’s largest partner in the energy sector, covering the full spectrum from nuclear energy to fossil fuels, and this cooperation will expand in the coming years, New Delhi’s envoy to Moscow, Vinay Kumar, stated on Thursday while addressing a session at the Eastern Economic Forum in Vladivostok.

“Russia forms part of our energy security and we are looking to further expand these ties,” Kumar said. He added: “Russia is also an important partner for food security as it is a large exporter of fertilizers. I would encourage the Russia producers not to only continue but increase exports, for which Russia needs to expand domestic production of fertilizers.”

Bilateral trade between the two nations has increased six-fold in the past two years, mainly owing to India’s purchases of Russian crude oil. In 2023, the trade turnover registered over $65 billion, compared to an average figure of $10-13 billion reported annually before 2022.

India is the fastest growing and most populous nation in the world. Securing Russian energy resources is key to sustaining such high levels of growth. The Indian economy is projected to post growth of 7.2% this financial year, Reserve Bank of India Governor Shaktikanta Das said on Thursday. 

“The energy sector remains a cornerstone of bilateral cooperation,” Tribhuvan Darbari, chairman of the India-Russia Business Council, stated. Addressing the forum he emphasized that India’s “growing energy requirement aligns with Russia’s abundant energy resources.” In 2023, India imported over 43 million barrels of crude oil from Russia, a significant increase from the previous years, he added.

India has not supported the sanctions on Russia despite pressure from Western partners, and has in fact ramped up its purchases of Russian oil. It recently overtook China as the largest buyer of Russian crude. This not only helped the Prime Minister Narendra Modi-led government ensure its commitments to invest in upgrading the country’s infrastructure and provide socio-economic benefits to hundreds of millions of Indians, but made the South Asian nation one of the leading exporters of petrochemicals to Europe. India’s exports of refined oil products to European countries have surged by 2,539 times since 2018, The Print reported earlier this week, citing data from the Ministry of Commerce and Industry. 

Indian officials have repeatedly stated that the country’s decision to buy Russian oil, despite Western pressure, has helped prevent a global energy crisis. Petroleum Minister Hardeep Singh Puri emphasized in a recent interview with RT that without Russian oil on the market, global prices would have hit $250-$300 per barrel.

According to Darbari, Indian energy companies’ investments in the Russian hydrocarbon sector will also ensure a stable supply of oil to India, as well as foster the economic development of Russia’s Far East. Indian state-owned firms have invested around $16 billion in oil and gas assets in the Far East and East Siberia, including Sakhalin-1, Vankor and Taas-Yuryakh, and have been considering investing more in Rosneft’s massive Vostok oil project in the Arctic portion of Krasnoyarsk Region. After reaching its full capacity, the project is set to produce 50-100 million tons of oil per year.

…The Eastern Economic Forum is underway on the campus of the Far Eastern Federal University in Vladivostok on September 3-6, 2024. The main theme of the EEF this year is “Far East 2030. Combining strengths to create new potential”.

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