Russian President Vladimir Putin's 2-day India visit: Defence deal, trade boost and dinner with PM Modi on agenda

Russian President Vladimir Putin will begin his two day visit to India on Thursday, December 4, during which he will be attending a dinner hosted by Prime Minister Narendra Modi, as well as take part in the 23rd India-Russia Summit on December 5. Putin’s visit comes at a time when India is going through a tense relationship with the US with regard to New Delhi importing crude oil from Russia. 

So, what is on the cards during Putin’s visit? 

According to reports, the summit talks between Modi and Putin is likely to focus on boosting defence ties, insulating bilateral trade from external pressure and exploring cooperation in small modular reactors. 

The topic of US sanctions on India’s procurement of Russian crude oil is also likely to be discussed during the summit between the two countries. According to PTI,  Kremlin spokesperson Dmitry Peskov on Tuesday said New Delhi's purchase of crude oil from Russia may decline for "a brief period" in view of Western sanctions, but, at the same time, he said Moscow is taking steps to enhance the supplies.

Following the Modi-Putin talks, the two sides are expected to ink a plethora of agreements, including one on facilitating the movement of Indian workers to Russia, and another on logistical support under a broader framework of defence cooperation.

It is learnt that under the trade basket, Indian exports to Russia are expected to significantly increase in areas of pharma, agriculture, food products and consumer goods.

The move comes amid concerns in New Delhi over a ballooning trade deficit in favour of Russia.

India's annual procurement of goods and services from Russia amounts to around USD 65 billion, while Russia's imports from India stand at around USD 5 billion. Officials said India is also looking at boosting cooperation in the fertiliser sector. Russia supplies three to four million tonnes of fertilisers to India annually.

The Indian and Russian sides are also likely to discuss New Delhi's proposed free trade agreement with the Eurasian Economic Union.

Ahead of the summit, the defence ministers of the two countries will hold wide-ranging talks on Thursday that are likely to focus on India's plan to procure additional batches of S-400 missile systems and other critical military hardware from Russia.

The S-400 missile systems proved to be very effective during Operation Sindoor. Top military officials said the overall focus will be to further expand the already close defence and security ties between the two countries, with a particular focus on ensuring expeditious supply of military hardware from Russia to India.

In October 2018, India signed a USD 5 billion deal with Russia to buy five units of the S-400 air defence missile systems, notwithstanding a warning by the US that going ahead with the contract may invite US sanctions under the provisions of Countering America's Adversaries Through Sanctions Act (CAATSA).

Peskov said there may be a discussion on the possibility of Russia supplying Su-57 fighter jets to India. India is in the process of procuring a batch of fifth-generation fighter jets. Dassault Aviation's Rafale, Lockheed Martin's F-21, Boeing's F/A-18 and the Eurofighter Typhoon are the main contenders.

Ways to bolster bilateral energy ties are also expected to figure prominently in the summit. It is learnt that Russia has offered India additional discounts for its procurement of crude oil.

The offer came after the volume of India's purchase of Russian crude oil registered a decline in the last few weeks following the latest wave of US sanctions on two Russian oil producers.

India and Russia have a mechanism under which India's prime minister and the Russian president hold a summit meeting annually to review the entire gamut of ties. So far, 22 annual summit meetings have taken place alternatively in India and Russia. The Russian president had last visited New Delhi in 2021.

In July last year, PM Modi travelled to Moscow for the annual summit. Russia has been a time-tested partner for India and a key pillar of New Delhi's foreign policy.

With PTI inputs.