Putin Advocates Early Signing of India-Eurasian Economic Union Trade Agreement to Boost Bilateral Relations

Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan constitute the five member nations of the Eurasian Economic Union (EAEU).

New Delhi:

On Friday, Russian President Vladimir Putin advocated for the early signing of a preferential trade agreement between India and the Eurasian Economic Union (EAEU), stating it would diminish barriers to facilitate the movement of goods, services, and capital. The first round of negotiations for this free trade pact between India and the Eurasian Economic Union was conducted last week.

India and the five-nation EAEU formalized the terms of reference for the agreement on August 20.

The EAEU comprises Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan as its five member countries.

Speaking at the India-Russia Business Forum, Putin mentioned that he and Prime Minister Narendra Modi have established a target of USD 100 billion in bilateral trade by 2030.

He emphasized that achieving this ambitious target necessitates active participation from business communities in both nations.

Current trade between the two countries is approximately USD 70 billion.

During his two-day official visit, Putin stressed the importance for both regions to reduce barriers that impede the movement of goods, services, and capital.

"In this context, a significant impetus could be provided by the expeditious signing of a preferential trade agreement between India and the Eurasian Economic Union," he observed.

Putin clarified that the Russian delegation's visit extends beyond energy discussions, including signing contracts for oil and gas supplies.

"Our aim is to develop multifaceted relations with India across various sectors," he stated, adding that Russian companies are prepared to substantially increase their purchases of Indian goods and services.

Putin also highlighted that free trade is "inconceivable" without robust bilateral settlement and reliable payment and insurance mechanisms.

He pointed out the tangible advantages of utilizing national currencies in trade transactions.

Ensuring uninterrupted financial transactions regardless of external developments is crucial, he added.

The India-Russia cooperation, according to Putin, should transcend mere trade.

"We should advance to enhance our industrial cooperation collectively...We are ready for comprehensive cooperation in artificial intelligence, a field where both our countries have already made significant progress," he said.

Earlier that day, Putin and Modi held summit-level discussions that garnered global attention.