Lavrov, Jaishankar discussed trade, sustainable currency, logistics: Russian Embassy

India's External Affairs Minister and Russia's Foreign Minister held bilateral talks in New Delhi on the sidelines of the BRICS Foreign Ministers' Meeting, r...

What Happened

India's External Affairs Minister and Russia's Foreign Minister held bilateral talks in New Delhi on the sidelines of the BRICS Foreign Ministers' Meeting, reviewing the full spectrum of bilateral cooperation.
Discussions centred on expanding trade and economic relations, establishing financial mechanisms insulated from external political pressure, and strengthening transport and logistics connectivity between the two countries.
The two sides also exchanged views on major global developments and the ongoing West Asia crisis, reinforcing their commitment to dialogue-based resolution of disputes.
Russia's Foreign Minister also called on the Prime Minister during the visit, signalling the strategic depth of the bilateral relationship.
The meeting occurred under India's 2026 BRICS Chairmanship, with the broader grouping focusing on multilateral financial reform and Global South priorities.

Static Topic Bridges

India-Russia Strategic Partnership

India and Russia share a "Special and Privileged Strategic Partnership," formalised through multiple summit-level annual engagements. The relationship is institutionalised through the India-Russia Inter-Governmental Commission (IRIGC) on Trade, Economic, Scientific, Technological and Cultural Cooperation, which oversees working groups across energy, defence, trade, and logistics.

Defence ties: Russia remains India's largest defence supplier historically; joint production platforms include BrahMos Aerospace (a joint venture).
Energy: Russia became India's top crude oil supplier from 2022 onward following Western sanctions-driven price discounts; Indian refiners purchase Russian crude in rupee and alternative currency arrangements.
Trade: Bilateral trade target set at USD 100 billion by 2030; current trade is heavily skewed toward imports (Russian crude) with limited Indian exports.

Connection to this news: The bilateral discussion on financial mechanisms reflects the ongoing effort to institutionalise alternative payment arrangements that allow trade to continue outside dollar-based correspondent banking — a structural challenge that has grown since 2022.

De-dollarisation and Alternative Payment Mechanisms

De-dollarisation refers to the process of reducing reliance on the US dollar in international trade, reserves, and financial settlements. BRICS nations have collectively explored several instruments: BRICS Pay (a planned decentralised payment messaging system), mBridge (a multi-central bank digital currency platform involving China, UAE, Saudi Arabia, Hong Kong, and Thailand), and bilateral national-currency trade agreements.

India-Russia rupee-rouble trade has faced practical challenges: Russia's large rupee surplus from crude sales cannot be easily repatriated or deployed, creating settlement imbalances.
Russia reported in 2024 that 90% of its intra-BRICS trade was conducted in national currencies rather than dollars.
mBridge reached Minimum Viable Product stage in mid-2024; the Bank for International Settlements withdrew from the project in October 2024, transferring management fully to participating central banks.
BRICS Pay remains in pilot stage as of 2026; no unified BRICS payment system is yet fully operational.
The phrase "sustainable currency mechanisms" in BRICS discourse refers to settlement systems not susceptible to unilateral sanctions or secondary sanctions pressure.

Connection to this news: The specific mention of "sustainable currency" in bilateral talks reflects India's search for a durable settlement mechanism for Russia trade — one that does not expose Indian banks to US secondary sanctions risk.

International North-South Transport Corridor (INSTC)

The INSTC is a 7,200-km multi-modal (road, rail, sea) transport route connecting India to Russia and Central Asia via Iran. The corridor runs from Indian ports through the Iranian port of Bandar Abbas, onward through the Caspian Sea or overland through Azerbaijan to Russia.

Agreement signed in 2000 by India, Iran, and Russia; additional member states have joined.
Western route: India → Bandar Abbas → Azerbaijan → Russia.
Eastern route: India → Bandar Abbas → Caspian Sea → Astrakhan (Russia).
Estimated to reduce freight time from Mumbai to Moscow from 40 days (via Suez) to approximately 25 days and cut costs by 30%.
The ongoing conflict in West Asia and Strait of Hormuz tensions in 2026 have added urgency to operationalising this corridor.

Connection to this news: "Logistics connectivity" in India-Russia talks directly pertains to INSTC operationalisation — a strategic priority for both sides to reduce dependence on western-controlled sea lanes.

Key Facts & Data

India's 2026 BRICS Chairmanship theme: "Building for Resilience, Innovation, Cooperation and Sustainability."
The 18th BRICS Summit is scheduled for September 12–13, 2026, in New Delhi.
BRICS now has 11 full members: Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa, UAE; plus 10 Partner countries (from 2025).
India is hosting BRICS chairmanship for the fourth time (previous: 2012, 2016, 2021).
Russia is the top crude oil supplier to India since 2022, when Indian refiners began purchasing Russian Urals crude at a significant discount to Brent.
INSTC was formalised in the St. Petersburg Agreement (2000); India, Iran, and Russia are the original signatories.