India Pushes Russia to Ease Trade Barriers Ahead of Key Multilateral Meeting

New Delhi: India has urged Russia to remove trade barriers on Indian goods, including electronics, engineering products, food items, and fish, to enable the utilization of approximately $50–55 billion worth of Russian rubles currently held in Russian banks. These funds accumulated as a result of India’s crude oil imports from Russia.

According to reports by The Times of India, Indian exporters are facing multiple challenges in accessing the Russian market. In the electronics sector, specific software-related requirements imposed by Russia have created significant hurdles. Similarly, engineering goods face delays due to strict standards, and some products must meet local language requirements, making export processes cumbersome.

An official involved in the discussions noted, “Our goods must comply with certain Russian and Eurasian standards, which has made exporting difficult.”

The matter has reached the highest levels of government. India’s trade deficit with Russia is substantial. In the first seven months of the 2025–26 financial year, the deficit reached nearly $25 billion, primarily due to crude oil imports from Russia.

Some Russian oil companies are under U.S. sanctions, leading Indian refiners to reduce purchases. However, new suppliers are emerging, offering opportunities to reduce the trade gap. Payments for Russian crude have been made in rubles and other currencies, resulting in large sums being parked in Russian banks.

Despite the export challenges, Russian retail chains have shown interest in importing Indian food and other products. An official stated, “We have raised the issue of stringent standards with Russian authorities at the highest level, and efforts to resolve it are being appreciated.”

This dialogue comes ahead of a crucial meeting next month regarding a proposed trade agreement with the Eurasian Economic Union (EAEU), which includes Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan. India aims to have Russia lift trade restrictions to both facilitate exports and enable the use of frozen rubles, presenting a significant opportunity for Indian exporters.