... potential for further growth. The following report proposes paths for expanding bilateral economic ties, assessing the current dynamics in trade, investment flows, technology exchange, and labor mobility. The authors analyze the impact of international sanctions on bilateral cooperation, examine challenges and opportunities in high-tech sectors, and provide recommendations aimed at strengthening the Russia–India economic partnership.
Toward More Balanced Russia–India Economic Relations
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... applied secondary financial sanctions for ties to Russia against nearly a thousand companies in a wide variety of jurisdictions, from EU countries to post-Soviet states. The largest number of these companies are located in China, the UAE, Turkey, and India. In all cases, secondary sanctions have not caused any noticeable diplomatic complications in these countries’ relations with the US. Moreover, the EU and UK themselves are actively developing the practice of applying secondary
sanctions in relation to Russia.
During Trump’s ...
... helped overcome a protracted economic crisis. The next stress test began in 2022, amid a severe setback in relations between Russia and the “collective West”. Contrary to expectations of a collapse in Russian-Indian trade due to the risk of secondary sanctions, India’s role in Russian foreign economic relations has increased manifold. It is noteworthy that the declarations of the summits of the two countries’ leaders have focused on specific economic objectives and hardly touched on political abstractions....
... Haixin Port, and Shandong Jingang Port (for accepting vessels carrying Russian oil). The United States, for its part, imposed so-called secondary tariffs—additional duties on purchases of Russian oil—against India on August 6, 2025.
So far, secondary sanctions against Chinese and Indian companies, as well as secondary tariffs, have hardly made a significant impact on relations between New Delhi and Beijing and Western governments. The global leaders have not taken any retaliatory measures. On the other hand, there are no signs ...
... indirectly related to American jurisdiction. This is evident from the low share of Indian companies that are subject to administrative and criminal investigations by the US authorities in connection with the intentional or unintentional circumvention of sanctions. Indian companies are rarely subject to such criminal investigations; among the administrative investigations of the US Treasury Department over the past 15 years, the only exception is Godfrey Philips—an Indian tobacco supplier that exported its products ...
... projects such as Arctic LNG 2 and Rosneft. From a long-term energy security perspective, investment appears to be logical and rational. However, this also creates a geopolitical risk due to US sanctions on the Arctic LNG 2 project and other mining related sanctions. Furthermore, there may also be other legitimate unresolved Indian concerns. For instance, due to problems with the German subsidiary of Gazprom, which refused to honor its contract, they were unable to repatriate dividend income from investments in Russia. Media reports indicate that this was about USD 600 million....
... next stage is looming ahead: the building of production chains with the participation of Russian and Indian companies. This is necessary both for Russian enterprises, which will thereby be able to remove at least part of their production from under the sanctions, and for Indian companies, given that hopes for a stable decoupling between the U.S. and China seem to have been dashed, while the amount of Western investment in the Indian economy, which rose sharply a few years ago on the back of aggressive rhetoric by U.S....
... is a mere tenth the value of Russia’s trade with China. The growth is provided mainly by Russian oil supplies. In itself, this is a step forward, especially given the embargo on Russian oil in the US, the EU and other countries that initiated the sanctions. But there are problems with balancing. The imbalance of exports and imports makes it difficult to use rubles and rupees in mutual settlements. Indian business is also very cautious in dealing with Russian counterparties. The Indian market is important for Russia, but India itself, like China, can hardly be considered a “black knight” yet.
The same can be said about Turkey. Trade volumes ...
On September 30, 2022 the Russian International Affairs Council (RIAC) together with the Moscow Chamber of Commerce and Industry held a roundtable Russia – India Energy Cooperation under New Geopolitical Conditions. The event was closed from the public
On September 30, 2022 the Russian International Affairs Council (RIAC) together with the Moscow Chamber of Commerce and Industry held a roundtable Russia ...
... revoke them completely. There is a kind of institutional inertia in the EU as well and there is a need for consensus. Some countries will never support that.
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The reality is that sanctions is a long-term challenge—but it does not preclude India and Russia from developing a new bilateral paradigm. Russian side will have to intimate their Indian friends about projects in Russia, provide better investment conditions, raise awareness about Russia, its culture, and markets, etc. Russia should ...
