India and Russia Strengthen Economic Ties During Putin's Visit to New Delhi\n\nRussian President Vladimir Putin conducted a two-day visit to New Delhi, India, beginning Thursday evening. This marked his first visit to the country since Russia's invasion of Ukraine nearly four years prior.\n\nUpon arrival, Prime Minister Narendra Modi greeted President Putin. The reception included an honor guard and a brass band. Evening prayers at the Ganges River featured devotional lamps displaying 'Welcome Putin,' as shared online.\n\n## Economic Discussions and Agreements\n\nFollowing bilateral discussions on Friday, both nations announced an agreement to increase opportunities for Indian nationals to work in Russia. President Putin stated Russia's readiness to "continue uninterrupted shipments of fuel for the fast growing Indian economy."\n\nDiscussions also included aspirations to increase bilateral trade to $100 billion. Currently, trade primarily consists of India's purchases of Russian fossil fuels.\n\n## Russian Oil Purchases Amid Sanctions\n\nIndia increased its acquisition of Russian oil following the Ukraine invasion, becoming a major global buyer and also reselling Russian oil products. Recently, Indian companies reduced their Russian oil purchases after the U.S. administration implemented a 50% tariff increase on India and imposed sanctions on certain Kremlin-linked Russian oil producers.\n\nFor instance, Reliance Industries, a significant importer of Russian crude, reportedly ceased purchasing Russian crude for its export products in late November. This action was taken to comply with a new European Union ban on imports of refined products made from Russian crude sourced from some third countries, including India.\n\nThe feasibility of continued uninterrupted fuel shipments from Russia to India amidst tariffs and sanctions remains a subject of observation. The Finnish-based Centre for Research on Energy and Clean Air has reported an increase in practices to avoid sanctions by vessels transporting Russian oil, including the use of reportedly fraudulently obtained flags to conceal operations. India previously characterized pressure to reduce its Russian oil purchases as "unreasonable," citing that the European Union and the United States also acquire Russian energy products.\n\n## India's Geopolitical Positioning\n\nIndia has maintained an independent foreign policy approach. Historically, India developed close ties with Russia (then the Soviet Union) decades ago. This relationship developed in a geopolitical context where Pakistan allied with the U.S., and U.S.-China relations began to normalize in the early 1970s, alongside India's disputed border with China.\n\nThe visit by President Putin occurred while his international travel has been constrained since the International Criminal Court issued an arrest warrant against him in March 2023.\n\nPrime Minister Modi, in his prepared statements, referred to the situation in Ukraine as 'the situation in Ukraine.' He stated, "We welcome all efforts being made for a peaceful and lasting resolution in this matter. India has always been, and will always be ready to contribute." It was not specified if this reference included recent efforts by the U.S. administration.\n\nOn Tuesday, Steve Witkoff and Jared Kushner, associated with the U.S. administration, met with President Putin's team for five hours. President Putin told India Today on Thursday that some of the administration's proposals could not be agreed to, without disclosing further details.\n\n## U.S. Engagement and Future Outlook\n\nIndia has also increased its purchases of U.S. oil and natural gas, partly to address its trade deficit with the U.S. Chietigj Bajpaee, a senior research fellow for South Asia at Chatham House, noted India's strategy to maintain relations with Moscow while deepening engagement with Western nations.\n\nBajpaee indicated that Russia remains a key strategic partner for India, emphasizing India's reluctance to sever this relationship, especially under external pressure. However, he suggested a potential trajectory towards a "managed decline" in the relationship. Despite reported tensions, Bajpaee also highlighted strong functional cooperation between India and the U.S., noting that India conducts more joint military exercises with the U.S. than with any other country, with five such exercises conducted in the current year.\n\nBajpaee also commented that, from New Delhi's perspective, recent developments may present Russia as a relatively more reliable partner compared to what he described as "the U.S.' fickle and sometimes unpredictable behavior."