India And Russia Expand Defense And Energy Pact Despite Rising US Tariffs And Ukraine War Tensions

by Stefan J. Bos, Worthy News Chief International Correspondent

NEW DELHI/MOSCOW/BUDAPEST (Worthy News) – India and Russia have agreed to deepen cooperation in defense, trade, energy — including nuclear power — as well as critical minerals and high-tech manufacturing, despite mounting U.S. pressure and punitive trade measures.

Russian President Vladimir Putin and Indian Prime Minister Narendra Modi outlined an ambitious roadmap during their annual summit in New Delhi.

The 23rd Russia-India Summit came as the United States increased trade tariffs on India over its continued purchases of discounted Russian oil, even as Moscow’s invasion of Ukraine enters its fourth year. Energy exports remain essential for Russia’s war financing.

Both leaders emphasized that their partnership would advance regardless of external pressure.

RUSSIA, INDIA SIGN STRATEGIC AGREEMENTS

India and Russia signed 16 wide-ranging agreements, including deals on defense manufacturing and military modernization, as well as expanded civilian nuclear cooperation, such as additional reactors at India’s Kudankulam Nuclear Power Plant.

Moscow also pledged to maintain uninterrupted oil and natural gas supplies to India. The agreements, signed Friday, cover critical minerals exploration, joint development projects, and a shared goal of boosting bilateral trade to $100 billion by 2030.

Additional partnerships were announced in pharmaceuticals, healthcare, media, and culture.

Putin praised the partnership, saying: “Our relations are based on mutual respect, trust, and the pursuit of multipolarity in the world.”

Modi echoed that sentiment: “Russia is India’s trusted friend. Today we have taken important steps toward strengthening our strategic cooperation.”

U.S. PRESSURE OVER INDIA–RUSSIA TIES

The two leaders also discussed strengthening the International North–South Transport Corridor (INSTC) and increasing rupee-rouble trade mechanisms to bypass Western banking restrictions.

The summit underscored India’s challenge of balancing its long-standing ties with Moscow and its deepening strategic relationship with Washington.

India has refused to join Western sanctions on Russia and remains one of the world’s largest buyers of Russian crude, even while cooperating militarily with the United States and participating in the QUAD, a security dialogue with the U.S., Japan, and Australia designed to counter China’s influence in the Indo-Pacific.

U.S. officials say India’s energy purchases indirectly help finance Russia’s war. New Delhi argues that its decisions are driven by economic necessity and energy security.

TRUMP IMPOSES 50% TARIFFS ON INDIA

In August 2025, U.S. President Donald J. Trump issued an executive order targeting India’s trade over its continued purchase of Russian oil.

Under that order, an additional 25 percent tariff was levied on Indian imports, effective August 27, stacked on top of existing duties. This brought the total U.S. tariff on many Indian exports to 50 percent, one of the highest rates Washington has imposed on any trading partner.

The White House said India’s importation of Russian oil — direct or indirect — undermined efforts to penalize Moscow for its invasion of Ukraine.

The sharply increased tariffs strained U.S.–India relations further, threatening major Indian export sectors, including textiles, gems and jewellery, leather goods, and other labor-intensive industries.

MODI GREETS PUTIN WITH STRIKING WARMTH

The new strategic agreements with Moscow are expected to intensify pressure on New Delhi as it navigates increasingly complex geopolitical demands.

Yet Putin was received by Modi at an airport in New Delhi on Thursday, where the Indian leader welcomed him with a bear hug and a firm handshake — a warm gesture that analysts said underscored the enduring strength of the India–Russia partnership.

The reception, described by observers as unusually enthusiastic given global tensions, highlighted India’s determination to preserve long-standing ties with Moscow.

Russian and Indian officials said follow-up negotiations are due in early 2026 to expand industrial cooperation and reduce the trade imbalance between the two nations.

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