Russia has expressed strong interest in joining India’s new air defence programme, called Sudarshan Chakra, which was announced by Prime Minister Narendra Modi during his Independence Day speech. The statement was made by Roman Babushkin, the Russian Charge d’Affaires in India, who said Moscow hopes to be an essential partner in developing the next-generation defence system.
India-US Tensions Over Trade and Russian Oil
The announcement comes at a time of growing trade tensions between India and the United States. US President Donald Trump recently increased tariffs on Indian exports to 50% and added an extra 25% tariff on Indian goods linked to purchases of Russian crude oil. This move impacts India’s $85 billion export industry to the US.
Despite pressure from Washington, India has continued buying Russian oil. Russia’s share in India’s oil imports has risen sharply — from just 1.7% in 2019-20 to about 35% in 2024-25. The growth followed Western sanctions on Russia after the Ukraine conflict, which made discounted Russian oil more attractive for India.
Russia Calls US Pressure “Unjustified”
Babushkin described US pressure on India to stop purchasing Russian oil as “unjustified.” He explained that Russia has set up special mechanisms to handle challenges caused by US sanctions and ensure stable trade with India. According to Russian officials, around 90% of India-Russia trade is now settled in rupees and roubles, solving earlier payment issues. Russian companies are openly accepting Indian rupees in settlement of trade deals.
Stable Oil Supply and Trade Growth Target
Russia continues to supply oil to India at a 5-7% discount compared to global market prices. The Nayara refinery in India, which has a direct supply agreement with Rosneft, plays a key role in ensuring smooth crude oil flow from Russia. Officials added that certain “mechanisms” have been put in place to avoid disruptions despite Western pressure.
Both countries have committed to boosting trade further. India and Russia have set an ambitious target of $100 billion in bilateral trade by 2030. Russia is also ready to increase imports of Indian goods that are being hurt by high US tariffs.
Defence Cooperation and Future Dialogue
India already operates the Russian-supplied S-400 air defence system, which played a critical role during the armed clashes between India and Pakistan in May this year. Russian officials noted that the success of the S-400 strengthens the case for deeper defence collaboration.
Russia has also proposed a trilateral dialogue between India, Russia, and China for regional stability. Talks are ongoing on new areas of cooperation, including small modular nuclear reactors for India’s future energy needs.
Putin and Modi Meeting Expected by Year-End
The Russian Embassy in India confirmed that President Vladimir Putin and Prime Minister Narendra Modi are expected to meet in New Delhi before the end of 2025. However, officials said that exact dates for the summit have not been finalized yet.
With trade growing at an estimated 10% annually and oil imports from Russia remaining strong, both countries are working to deepen their partnership despite ongoing geopolitical challenges.
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