Reuters: Russia sent India a list of goods for potential imports

Russia sent India a list of more than 500 items for potential delivery, including spare parts for cars, aircraft and trains, informs Reuters, citing four sources familiar with the situation.

The agency writes that this list is preliminary and it remains unclear how many goods and in what quantity will eventually be exported to Russia. An Indian government source told Reuters the request was “unusual” in scope. India is interested in expanding trade in this way as the country attempts to reduce its growing trade deficit with Russia, the agency source said. However, some Indian companies are concerned that such deals could fall under Western sanctions.

A Reuters source in Russian industry said the Ministry of Industry and Trade has asked major companies to provide lists of the raw materials and equipment they need. Russia’s requests were made days before Indian Foreign Minister Subramanyam Jaishankar’s visit to Moscow in early November, two Indian sources said. Then Jaishankar said that the country needed to increase exports to Russia in order to balance trade relations between the two states.

Between February 24 and November 20, India’s imports from Russia almost quintupled to $29 billion from $6 billion in the same period last year. However, exports fell from $2.4 billion to $1.9 billion. India hopes to increase its exports to almost $10 billion in the coming months with the help of Russia’s aforementioned list, according to an agency source.

In early November, the Government of India allowed international trade settlements in Indian rupees to promote exports. In September, The Economic Times reported that India would start trading with Russia in rupees as the Indian State Bank (SBI) agreed to facilitate trade deals with Russian partners in the national currency.

November 13 edition of Indian Express reported that the Indian authorities intend to double the volume of trade with the Russian Federation, using rupees in the calculations. The volume of trade between the two countries grew largely on the back of a sharp increase in India’s imports of Russian oil. India used to import less than 1% of its total crude oil from Russia, but now it is about 22% of its needs. The Indian Express noted that in October Russia became the largest supplier of oil to India, overtaking Iraq and Saudi Arabia.

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