Jaishankar Pushes Deeper Russia Engagement Amid Rising US Trade Barriers

Jaishankar Urges Deeper Russia Ties Amid Trade Imbalance, US Tariffs.

External Affairs Minister S. Jaishankar on Wednesday pressed for stronger Russian corporate engagement with India, cautioning that tariff and non-tariff barriers risk slowing bilateral trade.

Speaking in Moscow at the 26th session of the India-Russia Inter-Government Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC), co-chaired with Russia’s First Deputy Prime Minister Denis Manturov, Jaishankar highlighted the urgency of concluding a Free Trade Agreement (FTA) between India and the Eurasian Economic Union (EAEU). The commission finalised the terms of reference for the FTA during the meeting.

He identified priority areas including removing trade barriers, improving logistics, promoting connectivity through the International North-South Transport Corridor, the Northern Sea Route and the Chennai-Vladivostok corridor, and ensuring smooth payment mechanisms.

Trade Surge, But Deficit Widens

India-Russia trade has risen sharply—from USD 13 billion in 2021 to USD 68 billion in 2024-25—driven largely by Indian imports of Russian hydrocarbons. However, Jaishankar noted the growing imbalance, with India’s trade deficit soaring from USD 6.6 billion in 2021 to nearly USD 59 billion. He urged Moscow to provide greater access for Indian exports.

Push for Innovation in Cooperation

At the India-Russia Business Forum, Jaishankar encouraged Russian companies to invest in India and explore joint ventures. He stressed that a “time-tested” strategic partnership must rest on a strong economic foundation, calling on businesses to diversify trade, set clear targets, and move “beyond the beaten track.”

“Doing more and doing differently should be our mantras,” he told delegates, urging each sub-group to deliver concrete outcomes by the next commission meeting.

US Tariffs Cast Shadow

The talks came against the backdrop of heightened trade tensions with Washington. President Donald Trump recently doubled tariffs on Indian goods to 50 per cent, including an additional 25 per cent penalty linked to New Delhi’s continued purchase of Russian crude. The White House said the move aimed to pressure Moscow by constraining its trade partners.

Without directly naming the US, Jaishankar acknowledged the “complex geopolitical situation” but underlined that India and Russia remained closely engaged at the leadership level.

Jaishankar is on a three-day visit to Moscow focused on consolidating bilateral ties and reinforcing economic cooperation.