In a bold move with significant geopolitical implications, India has finalised a major new trade agreement with Russia, directly countering pressure from the United States. The deal, announced on Friday, 5th December 2025, aims to expand and diversify economic cooperation between New Delhi and Moscow until the year 2030.
A Strategic Partnership Defies Western Pressure
During summit talks in New Delhi, Indian Prime Minister Narendra Modi and Russian President Vladimir Putin solidified the long-term economic programme. The agreement comes as India faces sustained pressure from Washington to curb its imports of Russian oil amidst the ongoing conflict in Ukraine. President Putin explicitly promised "uninterrupted shipments" of fuel to support India's rapidly growing economy, declaring Russia a "reliable supplier of oil, gas, coal, and everything that is required for the development of India's energy."
The diplomatic significance was underscored by the reception for President Putin. Breaking standard protocol, Prime Minister Modi personally greeted Putin on the tarmac upon his arrival on Thursday evening, an act culminating in a warm embrace between the two leaders.
Energy Security and Soaring Trade Figures
The core of the strengthened alliance revolves around energy security. India, the world's third-largest consumer of crude oil, has dramatically increased its purchases from Russia since the Kremlin's full-scale invasion of Ukraine in February 2022. Before the war, Russian oil constituted a mere 2.5% of India's imports. This figure has skyrocketed to approximately 35%, as India capitalised on substantial price discounts offered after Western sanctions limited Russia's access to European markets.
The overall trade volume between the two nations highlights this deepening dependency. For the 2024-2025 period, bilateral trade stood at just under $69 billion (approximately £52 billion). However, this relationship is heavily imbalanced, with Indian exports to Russia amounting to less than $5 billion (around £3.7 billion).
Decades of Alliance Insulated from External Pressure
Speaking to India Today, President Putin framed the partnership as one of principle, stating, "Neither I nor PM Modi has ever, despite pressure, used our collaboration to act against anyone. India and Russia do not cause harm to others, and want other countries to take note of this." This sentiment underscores a decades-old strategic and defence alliance that both leaders appear determined to protect from external influence.
The summit talks were explicitly used by President Putin to insulate and safeguard crucial trade and defence ties between the two nations, demonstrating a clear intent to navigate around sanctions and diplomatic pressure originating from the White House.
This new pact until 2030 signals India's firm commitment to a foreign policy prioritising its national energy and economic interests, even when they diverge from the strategic objectives of traditional Western partners like the United States. The move will be closely analysed in capitals worldwide, including London, for its impact on global trade dynamics and geopolitical alignments.
