Rise in trade with Russia not a ‘temporary phenomenon’: S Jaishankar

External Affairs Minister S Jaishankar said that the rise in trade is not a “temporary phenomenon”. He said more economic opportunities are emerging. This comes amid a rise in India’s purchase of oil from Russia, making it one of the top buyers as western countries impose sanctions and halt purchases in response to the Ukraine-Russia war.

"For long, we have looked at Russia from a political or security perspective," Foreign Minister S Jaishankar said at an industry conference. "As that country turns eastwards, fresh economic opportunities are presenting themselves…the spike in our trade and new areas of cooperation should not be regarded as a temporary phenomenon," said Jaishankar at the annual general meeting of the Confederation of Indian Industries (CII). 

Trade between India and Russia stood at $65.7 billion in the financial year ending March 2024, a 33 per cent jump over previous year. The two nations have always had a close relationship, going back decades. Moreover, New Delhi refused to condemn Moscow over its February 2022 invasion of Ukraine, but urged both sides to end the conflict through dialogue and diplomacy.

India and Russia are working on an investment treaty as well as signing a free trade agreement with Moscow-led Eurasian Economic Union.

In the same event, Jaishankar said that the threat of sanctions is deployed in the toolbox of global diplomacy, in a reference to US’ warning of possible sanctions after India and Iran signed the Chabahar Port pact.

Speaking about the Ukraine conflict, escalation of violence in West Asia and disruption of logistics amid geopolitical tensions, Jaishankar said, "The world is experiencing a 3F crisis of fuel, food and fertilisers. In Asia, new tensions have emerged in land and sea as agreements are dishonoured and rule of law disregarded." 

Jaishankar said that terrorism and extremism have consumed those who long practised it. “In many ways, we are actually going through the perfect storm," he said.