S Jaishankar’s Big Message to Russia: Strengthening Ties Amid US Tariff Heat
On August 21, 2025, External Affairs Minister S Jaishankar delivered a compelling message during his three-day visit to Moscow, emphasizing the need to deepen India-Russia economic ties in the face of escalating US tariffs. With the United States imposing a 50% tariff on Indian goods—partly as a penalty for India’s continued purchase of Russian crude oil—Jaishankar’s visit underscored India’s strategic pivot to bolster its “special privileged strategic partnership” with Russia. This blog explores Jaishankar’s key messages, the context of US tariff pressures, and the implications for India’s economic and geopolitical strategy.
The Context: US Tariffs and India’s Trade Dilemma
The backdrop of Jaishankar’s Moscow visit is a strained India-US relationship, triggered by President Donald Trump’s decision to double tariffs on Indian goods to 50%, including an additional 25% penalty linked to India’s purchase of Russian crude oil, set to take effect on August 27, 2025. The US has justified these tariffs as a means to pressure India to curb its oil imports from Russia, claiming they fuel Russia’s actions in Ukraine. India, however, has defended its energy procurement as driven by national interest and market dynamics, capitalizing on discounted Russian oil since Western sanctions in 2022 shifted India’s import patterns. Russia now accounts for nearly 40% of India’s crude oil imports, up from just 1.7% in 2019-20.
The trade imbalance with Russia has also surged, with India’s trade deficit ballooning from $6.6 billion in 2021 to $58.9 billion in 2024-25, largely due to crude oil imports. This growing deficit, coupled with US tariffs, has placed India in a delicate position, balancing economic sovereignty with global pressures. Jaishankar’s visit to Moscow, including meetings with Russian Foreign Minister Sergey Lavrov, First Deputy Prime Minister Denis Manturov, and President Vladimir Putin, aimed to address these challenges while reinforcing bilateral ties.
Jaishankar’s Message: Diversify and Balance Trade
Speaking at the India-Russia Business Forum and the 26th India-Russia Intergovernmental Commission on Trade, Economic, Scientific, Technological, and Cultural Cooperation (IRIGC-TEC), Jaishankar delivered a clear message: India and Russia must diversify their trade basket and address the trade imbalance urgently. He highlighted that bilateral trade has grown five-fold from $13 billion in 2021 to $68 billion in 2024-25 but emphasized that the accompanying trade deficit—now nine times higher—requires immediate attention.
Jaishankar urged Russian companies to engage “more intensively” with their Indian counterparts, leveraging India’s rapidly growing economy, which boasts a GDP of over $4 trillion and a 7% growth rate. He pointed to initiatives like ‘Make in India’ as opportunities for Russian firms to invest in sectors like fertilizers, chemicals, machinery, and infrastructure, which align with India’s modernization and urbanization demands. “Doing more and doing differently should be our mantra,” Jaishankar said, advocating for joint ventures, investments, and new frontiers of economic cooperation.
To address logistical and trade barriers, Jaishankar proposed:
- Removing Tariff and Non-Tariff Barriers: Streamlining regulations to boost Indian exports in agriculture, pharmaceuticals, and textiles.
- Enhancing Connectivity: Promoting routes like the International North-South Transport Corridor (INSTC), the Northern Sea Route, and the Chennai-Vladivostok maritime corridor.
- Streamlining Payments: Resolving payment mechanism issues to facilitate smoother trade.
- India-Eurasian Economic Union FTA: Finalizing the Terms of Reference for a Free Trade Agreement, a significant step toward deeper economic integration.
Jaishankar also called for closer collaboration between Indian and Russian businesses to meet the revised trade target of $100 billion by 2030, emphasizing that an “enduring strategic partnership must have a strong and sustainable economic component.”
Addressing US Tariff Criticism
At a joint press briefing with Lavrov, Jaishankar expressed perplexity at the US logic behind targeting India with tariffs. He noted that China, not India, is the largest purchaser of Russian oil, and the European Union leads in LNG imports, yet India faces disproportionate scrutiny. “We are not the biggest purchasers of Russian oil, that is China. We are not the biggest purchasers of LNG, that is the European Union. We are not the country which has the biggest trade surge with Russia after 2022,” he said, highlighting the inconsistency in US policy. Jaishankar also pointed out that the US had previously encouraged India to buy Russian oil to stabilize global energy markets, making the current tariffs seem contradictory.
India’s Foreign Ministry spokesperson, Randhir Jaiswal, echoed this sentiment, calling the tariffs “unfair, unjustified, and unreasonable” and vowing to take “all actions necessary” to defend India’s economic sovereignty. Russian diplomat Roman Babushkin further supported India, stating that the Russian market welcomes Indian exports if US market access is restricted, and criticized US sanctions as “unjustified” and harmful to those imposing them.
Broader Geopolitical Implications
Jaishankar’s visit also addressed broader bilateral and regional issues, including the release of Indian citizens serving in the Russian army and discussions on Ukraine, West Asia, and Afghanistan. He reiterated India’s stance on dialogue and diplomacy for resolving conflicts, particularly in Ukraine, aligning with Prime Minister Narendra Modi’s recent call with President Putin. The visit, coming days after National Security Advisor Ajit Doval’s meeting with Putin, signals India’s intent to maintain strong ties with Russia despite Western pressures.
Jaishankar’s remarks at the BIMSTEC Traditional Music Festival earlier in August 2025 provide context for his broader vision: a “fair and multipolar global order, not one dominated by a few.” This aligns with India’s strategy to diversify partnerships, as evidenced by recent engagements with China and Singapore, to counterbalance US tariff pressures.
Challenges and Opportunities
While Jaishankar’s push for deeper India-Russia ties offers opportunities, challenges remain:
- Trade Imbalance: Increasing Indian exports to Russia in sectors like agriculture and pharmaceuticals is critical to reducing the $58.9 billion deficit.
- US Tariff Impact: The 50% tariff could disrupt India’s $150 billion trade with the US, necessitating alternative markets and trade deals.
- Geopolitical Risks: Balancing ties with Russia, the US, and China requires careful diplomacy to avoid alienating key partners.
However, Russia’s openness to Indian exports, as voiced by Babushkin, and the finalization of the India-Eurasian Economic Union FTA Terms of Reference provide a foundation for growth. India’s growing economy and strategic initiatives like ‘Make in India’ position it as an attractive partner for Russian firms, particularly in infrastructure and technology.
Conclusion
S Jaishankar’s Moscow visit sent a powerful message: India will not bow to US tariff pressures but will instead strengthen its economic and strategic partnership with Russia. By advocating for diversified trade, reduced barriers, and enhanced connectivity, Jaishankar laid out a roadmap to address the trade imbalance and achieve a $100 billion trade target by 2030. His candid response to US tariffs—questioning their logic and defending India’s energy choices—reflects India’s commitment to economic sovereignty and a multipolar world order. As global trade tensions escalate, India’s deepening ties with Russia signal a strategic recalibration, one that could reshape its economic and geopolitical trajectory in the years ahead.
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