According to the Indian government, which cited President Vladimir Putin, Russian oil giant ROSNEFT has announced a substantial investment of $20 billion in India. In light of changing geopolitical conditions, this venture seeks to deepen economic relations between Russia and India, especially in the energy sector.
The $20 billion transaction expands on ROSNEFT’s $12.9 billion acquisition of Essar Oil in 2017, which gave it access to the retail fuel sector in India. This most recent action is thought to be a calculated attempt to strengthen ROSNEFT’s position in India’s expanding energy market.
Putin stressed the profitability of investing in India and indicated his willingness to set up manufacturing units there at the 15th VTB Russia Calling Investment Forum. Russia sees India as a stable place to invest, especially for small and medium-sized businesses, he said.
Additionally, we are prepared to establish our production facilities in India. According to the Indian statement, Putin stated at the 15th VTB Russia Calling Investment Forum on Wednesday that “we believe that investing in India is profitable.”
The investment is part of a larger trend of growing bilateral commerce, which was mostly fueled by India’s increased purchases of Russian oil and hit a record $65.7 billion in 2023–2024. India has benefited from cheap Russian crude after Western sanctions on Russia for the conflict in Ukraine, and Russia is now its largest oil supplier, overtaking Iraq.
The two countries have set the lofty goal of reaching $100 billion in bilateral trade by 2030. As part of this objective, Indian Foreign Minister Subrahmanyam Jaishankar emphasized the necessity of improved access to the Russian economy.
India needs greater connectivity to the Russian economy, Indian Foreign Minister S Jaishankar stated on Thursday.
“Look, we are purchasing a lot of things, but we also need better,” we are adamantly telling the Russian leadership.
