Moscow: The latest package of European Union's sanctions on Russia has opened new opportunities for Indian business in boosting bilateral trade, Moscow-based Indian Business Alliance said on Monday.
The Council of the European Union on October 23 adopted the 19th package of further individual listings and numerous economic restrictive measures, including energy, finance and the military industrial complex, targeting key sectors which fuel what it termed as "Russia's illegal invasion of Ukraine."
The Indian Business Alliance (IBA), in a statement, said: "The EU sanctions against Russia have had an unexpected effect - instead of weakening the Russian economy, they have spurred local production and innovation. Russian industries have responded dynamically, filling the gaps left by the withdrawal of Western companies."
"At the same time, these measures have strengthened Russia's partnerships with friendly nations, particularly India," the IBA said and added that as many Western firms departed from Russia under the sanctions, new opportunities emerged - and Indian businesses stepped forward to meet the demand.
"Bilateral trade between India and Russia has now reached a record US USD 68.7 billion, reflecting the growing momentum in bilateral relationship," the statement, signed by IBA president Sammy Manoj Kotwani, said.
The 19th package of EU sanctions bans export of many items, including sanitaryware, toys with electric motors and tricycles to Russia.
"Indian generic drug manufacturers, who were in the past have been targets of western rivals' smear campaigns, are today ensuring stable supplies for Russian hospitals and pharmacies," the IBA said.
Indian exporters of engineering goods and machinery have significantly expanded shipments of equipment, components, and spare parts, while Indian consumer goods are back on shelves of Russian stores, it said, adding, Indian tea, rice, spices, and garments are increasingly replacing European brands.
"This cooperation benefits both nations - Russian consumers enjoy stable access to quality products, while Indian exporters gain new and growing markets," Kotwani underscored.
He noted that in this environment, the IBA is actively supporting the new wave of bilateral trade.
"We connect Indian and Russian companies, facilitate logistics and partnerships, and provide business guidance to strengthen mutual trust. Together, Russia and India are transforming global challenges into new opportunities - and emerging more resilient, united, and forward-looking than ever," he concluded.
A day before EU's sanctions, the US, on October 22, imposed sanctions on Russia's two largest crude oil producers, Rosneft and Lukoil, barring all American entities and individuals from conducting business with them.
On the other hand, the US has imposed 25 per cent tariffs on India as a penalty for purchasing oil from Russia. It is over and above the 25 per cent reciprocal tariffs on Indian goods entering American markets. Overall, Indian goods are attracting a steep 50 per cent additio ..
New Delhi has described these duties as "unfair, unjustified and unreasonable."
On Monday, India reviewed the progress of the ongoing negotiations for the proposed free trade agreement (FTA) with the 27-nation bloc EU.
The discussion on the pact was held between Commerce and Industry Minister Piyush Goyal and EU Commissioner for Trade and Economic Security Maros Sefcovic in Brussels.
Source Name : Economic Times