Russia-India Trade Booms
Trade between Russia and India has skyrocketed this year, with trade in the first eight months reaching a record US$43.8 billion, potentially hitting US$65.7 billion by year-end. Russian exports to India rose to US$41.2 billion, compared to US$17.1 billion the previous year. Imports from India also saw a 50% increase, standing at US$2.6 billion.
This boost in trade is partially due to the West’s sanctions on Russia over the Ukraine conflict, leading Russia to pivot towards Asian markets. In September, India’s Russian oil imports spiked by 80% to 1.56 million barrels per day.
Furthermore, India increased its Russian diamond purchases by 26%, buying gems valued at US$886.5 million. In contrast, the EU banned Russian diamond imports, impacting major European diamond businesses, especially in Belgium. As a result, diamond trade is shifting towards Asian markets, with India being the largest diamond importer in 2022, accounting for 22% of global imports. Other significant diamond buyers include Hong Kong, the UAE, China, and Thailand, none of which have imposed bans on Russian diamonds.
Highlighting the flourishing trade relationship, Valentina Matvienko, speaker of the Russian Parliament’s Upper House, said that trade had grown five-fold from US$10 billion to nearly US$50 billion. She emphasized the potential for even greater growth and collaboration in sectors like energy, agriculture, and IT, with India eager to strengthen ties further.
