Putin’s visit a tightrope walk for Modi govt. amid sanction threats, Pg12

Key Highlights:

• President Vladimir Putin visited India, receiving a grand welcome from Prime Minister Narendra Modi, signaling strong India-Russia ties despite Western concerns.
• Discussions will address balancing relations with Russia and Europe, focusing on oil imports, trade diversification, defense cooperation, nuclear energy, and labor mobility.
• India's oil imports from Russia surged from 2% to 40% post-Ukraine conflict, increasing India-Russia trade to $68.7 billion in 2024-25.
• A labor mobility agreement is expected to be a key outcome, potentially benefiting Indian workers seeking opportunities.

Detailed Insights:

• The visit's optics are crucial, considering upcoming visits from a U.S. trade delegation and German Chancellor Friedrich Merz, alongside the EU leadership for Republic Day.
• India aims to reduce Russian oil imports due to potential U.S. sanctions, exploring alternative commodities and boosting Indian exports via the Eastern Maritime Corridor.
• Progress on the FTA between India and the Eurasian Economic Union (EAEU) will be pursued, offering new markets for Indian exporters affected by U.S. tariffs.
• Russian technology transfer remains vital for India, especially in defense, with potential for increased military exercises despite EU protests.

Key Concepts Involved:

• Eurasian Economic Union (EAEU): An economic union of states located primarily in Northern Eurasia.
• FTA (Free Trade Agreement): A pact between two or more countries to reduce barriers to imports and exports.
• Countering America’s Adversaries Through Sanctions Act (CAATSA): US federal law that imposes sanctions on countries that engage with Russia's defense and intelligence sectors.