Russia formally denounced what it called “fake reports” on May 30, 2025, on the development of its commercial relations with Pakistan, particularly the joint venture to build new steel factories in Karachi.
Reminiscent of the historic Soviet-era partnership that resulted in the establishment of the Pakistan Steel Mills in the 1970s, these reports, which were extensively disseminated in Pakistani media, claimed that Moscow and Islamabad were promoting industrial cooperation, including the creation of a joint working group to supervise the construction of a steel mill.
Although discussions about possible cooperation may have occurred, Russian sources say that no “multibillion dollar contract” has been signed as stated.
Russian officials described the reports as “completely fabricated” and overblown, implying that their purpose was to sabotage the long-standing Special and Privileged Strategic Partnership between Russia and India.
According to reports, this alliance has become even more solid in the wake of previous military operations, like Operation Sindoor, in which Indian forces earlier in May 2025 targeted militant facilities within Pakistan and Pakistan-occupied Kashmir.
By pointing to the Indian Armed Forces’ effective use of Russian-made S-400 air defense systems and the deployment of jointly developed BrahMos supersonic cruise missiles against high-value targets in Pakistan, the Russian government further emphasized its commitment to upholding strong ties with India.
Denis Alipov, the Russian ambassador to India, publicly commended Prime Minister Narendra Modi’s leadership and India’s counterterrorism efforts, citing the Pahalgam terror assault on April 22 and restating President Vladimir Putin’s backing for India’s position. The strong bilateral relationship was also reaffirmed by Putin’s impending visit to India.
Although both sides have acknowledged that there have been talks between Russian and Pakistani representatives regarding industrial cooperation, Russia has flatly denied the existence of any significant, legally binding agreements and has criticized the way in which these discussions have been portrayed as a danger to its strategic alliance with India.
The episode highlights the delicate nature of Russia’s South Asian foreign policy balancing act and its preference for closer ties with India over deeper economic cooperation with Pakistan.
