India-Russia trade to continue despite Western sanctions: Envoy

Russian envoy Denis Alipov on Tuesday underlined the strength of bilateral ties with India, saying the positive dynamics of trade between the two countries will continue despite Western sanctions against Moscow.

In an interview with Sputnik News India, Alipov said that there were some difficulties with trade after the start of the Ukraine conflict, but added that both countries have successfully overcome most of these barriers.

He said the sanctions will certainly bring challenges, but cooperation will continue based on common interests.

“Unfortunately, in the first months after the launch of the special military operation in Ukraine there were certain difficulties in supplying Russian products to India and vice versa. However, today we have successfully overcome most of these barriers. We are confident that Indian exports Russia (including science-intensive ones) will gain momentum in the near future,” he said.

The envoy noted that the goals outlined in December 2021 at the annual bilateral summit in New Delhi are fully consistent with the huge potential of bilateral relations.

“The India-Russia partnership operates on all kinds of levels. We are expanding cooperation in communications, diamond processing, forestry, health and pharmaceuticals, tourism, railways, metallurgy, civil aviation, shipbuilding and oil refining. Our military cooperation and technical-military is getting stronger,” he said.

The Russian ambassador said that the dynamics of bilateral trade speaks for itself. “According to Indian statistics, from January to April 2022, it amounted to USD 6.4 billion. This is almost double that of the same period last year. If we maintain these volumes throughout the year, we will have a turnover of more than $19 billion by the end of 2022. To put this in context, let me remind you that the year before we had an all-time record $13.6 billion.”

Alipov said Russia sees good prospects for India’s pharmaceuticals, leather and textiles, agricultural products, components for machinery and equipment, telecommunication equipment and organic chemicals.

“We expect growth in mutual billing of services in sectors such as tourism, finance and insurance, telecommunications and information technology, transportation and construction. We have high hopes in the implementation of the International Transport Corridor project North-South (INSTC),” he said. she said.

Since the beginning of the war between Russia and Ukraine in February, the US and the EU, together with other partner countries, have imposed various sanctions packages against Russia, including targeted restrictive measures, economic sanctions and diplomatic measures.

The goal of the economic sanctions is to impose harsh consequences on Russia for its actions and effectively thwart Russian operations in Ukraine and cripple its economy.

Alipov said that the withdrawal of many Western companies from the Russian market opens up many new opportunities for Indian companies.

“The Russian business community is very serious about strengthening ties with India. Russia invites Indian companies in the metallurgical and aviation industries, in the wood processing chain, and companies that produce consumer goods for trade cooperation,” the envoy said.

“Our main task today is to adjust our trade and economic relations to the new realities, to synchronize the payment systems of the two countries, giving priority to the greater use of national currencies,” he added.

(Only the headline and image in this report may have been modified by Business Standard staff; all other content is auto-generated from a syndicated source.)

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