What Happened
- Russia's First Deputy Prime Minister Denis Manturov undertook a two-day visit to New Delhi (around April 2-3, 2026), his second high-profile visit in recent months.
- The visit focused on trade facilitation, improving market access for Russian goods, mutual settlement of payments, logistics resilience, and new investment projects — areas where bilateral engagement has intensified since Western sanctions on Russia began in 2022.
- Manturov held separate meetings with National Security Advisor Ajit Doval, Finance Minister Nirmala Sitharaman, and External Affairs Minister S. Jaishankar — indicating the visit spanned security, financial, and diplomatic tracks.
- The discussions occurred against the backdrop of the ongoing West Asia conflict, which has disrupted global energy supply chains and added urgency to alternative energy partnership arrangements.
- India-Russia bilateral trade has surged from approximately $13 billion in 2021 to $68 billion in 2024-25, driven primarily by India's massive increase in Russian crude oil imports at discounted prices.
- In March 2026, India was importing approximately 1.5 million barrels per day of Russian crude — a 50% increase over February 2026 — signalling accelerated engagement as Hormuz disruptions pushed Indian refiners toward alternatives.
- President Putin had specifically tasked Manturov with increasing India-Russia trade volumes; the visit operationalises that mandate.
Static Topic Bridges
India-Russia Special and Privileged Strategic Partnership
India and Russia (and before it, the Soviet Union) have had one of the most durable strategic relationships in modern Indian diplomatic history. The relationship was formalised as a 'Special and Privileged Strategic Partnership' in 2010, building on the original Treaty of Peace, Friendship and Cooperation signed in 1971 (which provided Soviet backing during the Bangladesh Liberation War). The relationship has been characterised by defence technology transfers, space cooperation, nuclear energy assistance (Kudankulam), and oil trade. Since 2022, the partnership has deepened economically even as India has maintained engagement with the West, exemplifying India's multi-alignment doctrine.
- 1971 Treaty of Peace, Friendship and Cooperation: provided mutual consultations in case of threat; critical during 1971 India-Pakistan war.
- 'Special and Privileged Strategic Partnership' formalised during Prime Minister Manmohan Singh's visit to Moscow in December 2010.
- Kudankulam Nuclear Power Plant (Tamil Nadu): Built with Russian technology and fuel; VVER-1000 reactors; Units 1 & 2 operational (combined capacity ~2,000 MW); Units 3-6 under construction or planned.
- India-Russia annual summit mechanism: Leaders meet annually; last such summit was in July 2024 (Modi's Moscow visit — first India-Russia bilateral summit in five years).
- Russia is India's largest defence supplier historically (accounting for 50-60% of India's defence imports over several decades, though share is declining as India diversifies).
Connection to this news: Manturov's visit extends the high-level engagement pattern established at the 2024 Modi-Putin summit — translating strategic declarations into operational trade, energy, and payment mechanism details, especially critical during the West Asia energy crisis.
Payment Settlement Challenges in India-Russia Trade
Western sanctions on Russia imposed after February 2022 disrupted dollar-based payment systems for India-Russia trade. Russia was cut off from SWIFT (the international interbank messaging network), making dollar transactions effectively impossible. India and Russia developed a Rupee-Ruble mechanism — a bilateral arrangement allowing trade to be settled in domestic currencies — that has achieved significant adoption. Over 90% of India-Russia trade is now reportedly settled in rupees and rubles. However, the mechanism faces structural challenges: the large trade surplus in Russia's favour (India imports far more than it exports) creates an accumulation of rupees in Russian accounts that Russia struggles to deploy, as international convertibility of the rupee remains limited.
- SWIFT: Society for Worldwide Interbank Financial Telecommunication; Belgium-based; processes ~50 million messages/day for global financial transactions; Russia's major banks cut off from SWIFT since March 2022.
- Rupee-Ruble mechanism: Established through Reserve Bank of India (RBI) and Bank of Russia coordination; uses Vostro accounts (foreign currency accounts held by Russian banks in Indian banks).
- Over 90% of India-Russia trade now settled in rupees and rubles (2024-25 data).
- Trade surplus: Russia runs a large surplus with India (India imports ~$50+ billion, exports ~$4-5 billion); accumulated rupee balances in Russian Vostro accounts are a persistent problem.
- Some Indian banks have reportedly declined to process Russia-related payments citing secondary sanctions risk (loss of access to the US financial system).
- Alternative being explored: Yuan-based settlement (China's RMB is freely convertible into rubles), which reduces India's payment friction but increases China's role in India-Russia trade.
Connection to this news: The focus on "mutual settlement of payments" in Manturov's visit agenda directly reflects the payment mechanism challenge — finding ways to make the rupee-ruble system more efficient and ensuring that Russia's large rupee balances can be profitably deployed in India's economy.
India's Logistics and Energy Connectivity with Russia: INSTC
The International North-South Transport Corridor (INSTC) is a multi-modal (rail, road, sea) connectivity project linking India to Russia through Iran and Central Asia. It was conceptualised in 2000 by India, Russia, and Iran, and has gained renewed strategic importance since 2022 as traditional supply chains have been disrupted. The INSTC reduces the distance between Mumbai and Moscow by approximately 30% compared to the Suez Canal route, cutting transit time from 40 days to around 25 days. Given the West Asia conflict's impact on the Suez Canal and Hormuz routes, INSTC has become India's alternative logistics corridor.
- INSTC: Conceptualised in 2000 (Millennium Summit agreement); 7,200 km multi-modal route; 13 member countries as of 2023.
- Key segments: Indian ports (Mumbai/Nhava Sheva) → Bandar Abbas (Iran) → Caspian Sea → Baku (Azerbaijan) → Moscow.
- India-Iran cooperation: Chabahar Port (Sistan-Baluchestan) is India's entry point into INSTC; India has invested ~$85 million in Shahid Beheshti terminal.
- West Asia conflict impact: Iranian port access and overland routes through Iran may be affected by ongoing military operations, though India secured guarantees for Chabahar and bilateral passage.
- India's alternative: Vladivostok–Chennai maritime corridor also being developed for direct Russia-India sea linkage.
Connection to this news: "Logistics resilience" as a stated focus of Manturov's visit directly references INSTC and alternative connectivity; both nations are working to insulate bilateral trade from disruptions caused by the West Asia conflict and Western sanctions pressure.
Key Facts & Data
- India-Russia bilateral trade (2024-25): ~$68 billion (up from ~$13 billion in 2021)
- India's Russian crude oil imports (March 2026): ~1.5 million barrels/day (50% rise over February 2026)
- Share of India-Russia trade settled in rupees/rubles: >90%
- Kudankulam NPP capacity (operational): ~2,000 MW (Units 1 & 2); Units 3-6 planned
- INSTC route distance: ~7,200 km (Mumbai–Moscow); ~30% shorter than Suez Canal route
- India-Russia 1971 Treaty: Signed August 1971; provided mutual consultations on security threats
- 'Special and Privileged Strategic Partnership': Formalised December 2010
- Last India-Russia leaders' summit: July 2024 (Modi's Moscow visit)
- Chabahar Port (India's investment): ~$85 million in Shahid Beheshti terminal