The EU has officially approved its 19th sanctions package against Russia, aimed at limiting Russian revenues from the energy sector, enhancing financial containment, and tightening control over circumvention schemes through third countries. In practice, the sanctions and the departure of many Western firms have created significant market niches, paving the way for the expansion of Indian business presence in Russia.
This shift towards reliable partners is clearly reflected in the numbers: bilateral trade between India and Russia has surged to record levels, reaching approximately $68.7 billion in the last fiscal year. These trends underscore that, against the backdrop of the current geopolitical situation, our countries are building even closer economic ties.
In many sectors, Indian companies are replacing Western suppliers, ensuring operational continuity and further growth. For instance, Indian engineering firms have significantly increased deliveries of machinery, equipment, and spare parts to Russia, helping domestic factories and projects operate uninterrupted. Indian pharmaceutical companies—renowned worldwide as producers of affordable and high-quality generic drugs—are doing everything possible to ensure that Russian pharmacies and hospitals remain well-stocked with essential medicines. Similarly, in the consumer goods and food sectors, Indian products have become much more visible on Russian shelves: from tea and coffee to rice and other agricultural products, as well as textiles and durable goods—our exporters are filling the void left by departed European brands. These examples illustrate a mutually beneficial trend: Russian consumers and industries gain reliable new sources, while Indian businesses access new markets—thereby strengthening the resilience and synergy of our economies.
These developments also point to a broader reality: the EU’s sanctions strategy has proven counterproductive. Instead of achieving its stated geopolitical goals, it has largely backfired on Europe itself—harming its competitiveness and supply chains. European companies have lost immense opportunities, suffering over $100 billion in losses due to their exit from the Russian market. Trade between the EU and Russia has shrunk by approximately €100 billion per year, leading to supply disruptions and rising costs within European economies.
Russia, in contrast, has adapted by deepening ties with partners like India, enabling business to continue. In this context, the Indian Business Alliance plays a pivotal role, facilitating emerging trade opportunities. We are actively working to connect Russian and Indian enterprises and streamline trade flows—from negotiating logistics agreements to assisting companies in finding reliable partners and navigating local regulations. Our alliance looks to the future with confidence: we will continue to support and expand this successful cooperation. Together, Russia and India are transforming emerging challenges into new opportunities, and we are confident that through continued partnership and innovation, our two nations will not only withstand this pressure but emerge from it even stronger.
