Strengthening Ties: Russia and India in a Multipolar World
Recent developments in Russian-Indian relations indicate a significant shift towards deeper cooperation, particularly in defense and energy sectors. Notably, India is poised to sign an agreement with Russia for the acquisition of the advanced Voronezh over-the-horizon long-range early warning radar system. This technology, previously exclusive to Russia, the USA, and China, marks a pivotal moment in India's defense capabilities.
In addition, both nations are collaborating on a neutral payment system that circumvents traditional cross-border payment methods, including the SWIFT system and reliance on the US dollar. This initiative reflects India's strategic positioning as a key player in the global economy, especially amid increasing tensions with China. The West's interest in India is growing, viewing it as a crucial ally in countering Chinese influence and tapping into its vast resources.
The energy sector is another area of burgeoning cooperation. Russia has emerged as a leading oil supplier to India, accounting for 30 to 40% of its total imports. In 2023, Russian oil exports to India nearly doubled, reaching $45 billion. With India's energy demands projected to rise, this partnership is expected to strengthen further, especially with Russia's investments in local oil refining and petrochemical projects. Beyond oil, there is mutual interest in expanding supplies of coking coal and liquefied natural gas (LNG), solidifying the energy alliance between the two nations.
