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India Raises This Demand To Russia Ahead Of Crucial 5-Nation Meeting: Why Tensions Between New Delhi, Moscow Are Intensifying
With an aim to utilise $50-55 billion in rubles tied up in Russian banks, India urges Moscow to remove restrictions on exports of electronics, engineering goods, food and fish.
New Delhi: India is pressing Russia to ease trade barriers that presently block the export of electronics, engineering products, food items and fish. The move is aimed at allowing the country to access roughly $50-55 billion worth of Russian rubles that is in Moscow's banks after oil imports.
According to The Times of India, Indian exporters are facing hurdles in the Russian market. Electronics shipments are delayed due to software-related requirements imposed by Russia, while engineering goods encounter strict standards that slow approvals. For some products, meeting local language or documentation requirements has also become a challenge.
One official involved in the discussions explained that Indian goods must comply with both Russian and Eurasian standards, which complicates the export process. The issue has been escalated to the highest levels of the Indian government, given the country's substantial trade deficit with Moscow.
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In the first seven months of the 2025-26 financial year, India's trade gap with Russia reached around $25 billion, largely due to crude oil imports.
US sanctions on certain Russian oil companies have caused Indian refineries to reduce their purchases, though some newer suppliers are now providing crude oil. As a result, there is hope that the trade deficit may ease.
Payments for Russian crude have been made in rubles and other currencies, leaving good amounts locked in Russian banks.
Indian exporters, however, continue to face difficulties in sending goods to Russia, even as Moscow's retail chains show interest in importing Indian food products and other items.
An official said that New Delhi has raised the issue of strict standards with Russian authorities at the highest levels, and these efforts are being appreciated in Moscow.
The discussions are taking place ahead of a critical meeting next month on a proposed trade agreement with the Eurasian Economic Union, which includes Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan.
India is keen for Russia to remove these trade obstacles so it can utilise the trapped rubles and provide Indian exporters with new opportunities in the Russian market.
Source: ZeeNews
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