Russian President Vladimir Putin, in the ongoing two-day visit on Friday, said that early signing of the preferential trade agreement will facilitate the movement of goods, services and capital. The trade agreement is between India and the Eurasian Economic Union (EAEU), which held the first round of negotiations for the free trade pact last week.
The five member countries of EAEU are Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan. India and the five-nation grouping, the Eurasian Economic Union (EAEU), on August 20, inked the terms of reference for the agreement.
Trade target between India and Russia
While addressing the India-Russia Business Forum, Putin said he and Prime Minister Narendra Modi have set a $100 billion trade target by 2030 between the two nations. He also mentioned that to achieve this target, both nations have to put active efforts from the business communities of both countries. The current trade is estimated at around $70 billion.
During his two-day official visit, President Putin stressed the need for both regions to eliminate trade obstacles to facilitate the movement of goods, services, and capital. He said, “In this regard, a strong impetus, as it seems, could be given by the rapid signing of a preferential trade agreement between India and the Eurasian Economic Union”.
Strengthening ties through contracts
President Putin clarified that the Russian delegation’s visit extends beyond discussing energy issues; they are also focused on signing oil and gas supply contracts. He emphasised Russia’s goal to develop multi-faceted relations with India and stated that Russian firms are prepared to increase purchases of goods and services. Putin stressed that establishing resilient bilateral settlement, reliable payment, and insurance mechanisms is essential for true free trade.
President Putin emphasised that using national currencies for trade offers tangible benefits, and stressed the importance of ensuring uninterrupted financial transactions regardless of external factors. He urged India-Russia cooperation to move beyond just trade to include enhanced industrial collaboration and readiness for a broad partnership in Artificial Intelligence (AI), a field where both countries are already highly advanced.
(With PTI Inputs)
