Russia

Russia’s trade with India and Global South hits $299 bn – PM

RT English · 2026-09-22

AI SUMMARY

• What happened: Russia's trade with India and other Global South countries reached approximately $299 billion in the first half of 2026, with friendly nations now accounting for 85% of its foreign trade, according to Prime Minister Mikhail Mishustin. • Why it matters: This shift signifies Russia's strategic pivot away from traditional trading partners in Europe and the United States, aiming to enhance economic cooperation with countries like India and China, which could reshape global trade dynamics. • What to watch next: Monitor the progress of trade agreements between Russia and India, including their goal to increase bilateral trade to $100 billion by 2030, and developments in the proposed free trade agreement with the Eurasian Economic Union.

**Title: Russia Shifts Trade Focus to India and Global South, Reaches $299 Billion in First Half of 2026**

**Moscow, Russia** – In a significant pivot from traditional trading partners, Russian Prime Minister Mikhail Mishustin announced that Russia is increasingly redirecting its trade towards India, China, and other countries in the Global South. According to Mishustin, friendly nations now account for 85% of Russia's foreign trade, with bilateral trade with these partners reaching approximately $299 billion (25 trillion rubles) in the first half of 2026.

During a video address at the Moscow Financial Forum, Mishustin emphasized the ongoing transformation of Russia's trade landscape. "Trade with Europe and the United States is being reoriented toward the markets of China, India, Central Asia, Africa, and the Middle East," he stated. This strategic shift is not limited to energy and commodity exports, which have historically dominated Russia's trade profile. Mishustin noted that non-resource and non-energy exports to friendly countries increased by 11% in the same period.

The overall non-commodity and non-energy exports from Russia reached $58.8 billion in the first half of the year, reflecting a 3% increase from the previous year. Key sectors contributing to this growth include chemicals, fertilizers, metals, and pharmaceuticals, as reported by Russian Industry and Trade Minister Anton Alikhanov.

India has emerged as a crucial partner in this trade expansion initiative. Currently, bilateral trade between Russia and India stands at around $60 billion annually, with both nations aiming to elevate this figure to $100 billion by 2030. Additionally, they are targeting $50 billion in two-way investments during the same timeframe.

Indian Commerce and Industry Minister Piyush Goyal highlighted that increased exports from India in various sectors, including pharmaceuticals, engineering goods, textiles, food products, and auto components, will play a vital role in achieving these ambitious trade goals.

The recent meeting between Russian President Vladimir Putin and Indian Prime Minister Narendra Modi during the BRICS Summit in New Delhi further underscored the commitment to enhancing economic cooperation. The leaders discussed strategies for closer trade ties and reviewed ongoing initiatives to bolster bilateral relations.

Both leaders also attended the INNOPROM India trade fair held from September 9-11, where they underscored the importance of such events in expanding trade and industrial collaboration.

In addition to trade agreements, India and Russia are strengthening their national and local currency settlement mechanisms, which aim to facilitate smoother transactions between the two nations. They are also working on developing critical transport links, including the International North-South Transport Corridor and the Chennai-Vladivostok maritime corridor.

Furthermore, formal negotiations have commenced between India and the Eurasian Economic Union regarding a potential free trade agreement, which could further enhance economic ties and trade flows between the regions.

As Russia continues to pivot away from traditional Western markets, the focus on strengthening ties with India and other Global South countries appears to be a central strategy in its economic policy moving forward.

Source: RT English
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