Putin’s New Delhi visit yields labor pact and oil pledge amid U.S. tariffs and EU bans
During his New Delhi visit, Vladimir Putin and Narendra Modi announced an expansion of economic ties — including a labor mobility deal to allow more Indian nationals to work in Russia, free electronic visas for Russian tourists, cooperation on civil nuclear, clean energy, shipbuilding and fertilizers, and steps toward an India–Eurasian Economic Union free-trade agreement — as bilateral trade stood at $68.7 billion last fiscal year. Putin also pledged Russia would continue “uninterrupted” fuel shipments to India even as Indian refiners have curbed Russian crude purchases after the U.S. doubled tariffs on India and new EU bans on refined products prompted exporters like Reliance to halt some Russian purchases, amid reports of sanction‑evasion practices by oil vessels.
📌 Key Facts
- India will begin issuing free electronic visas for Russian tourists and group travel, and India and Russia announced a deal to allow more Indian nationals to work in Russia.
- Bilateral trade between India and Russia totaled $68.7 billion in India’s last fiscal year ended March; India is seeking to narrow a large trade deficit by boosting exports.
- Putin emphasized a “very trusting” military‑technical relationship and reiterated Russia’s role as a reliable energy supplier, while Modi highlighted continued cooperation in civil nuclear projects, clean energy, shipbuilding, fertilizers and labor mobility.
- Both leaders said they are working toward an India–Eurasian Economic Union free‑trade agreement, which Putin said could help lift bilateral trade.
- Putin said Russia is 'ready to continue uninterrupted shipments of fuel' to India, even as Indian refiners have curbed purchases in recent weeks after the U.S. doubled tariffs on India to 50% and U.S. sanctions have targeted Kremlin‑linked oil producers.
- Reliance Industries, India’s biggest importer of Russian crude, has stopped buying Russian crude for export products to comply with a new EU ban on refined products made from Russian crude originating via certain third countries.
- CREA reports increased sanctions‑evading practices by vessels moving Russian oil, including the use of fraudulently obtained ship flags.
📊 Relevant Data
At the end of 2024, Russian companies were short about 2.2 million workers, and almost 70 percent of companies were experiencing labor shortages, driven by demographic factors such as an aging population and low birth rates.
Russia's Current Demographic Crisis Is Its Most Dangerous Yet — Carnegie Endowment for International Peace
In 2024, births in Russia fell to 1.22 million — the lowest level since 1999 — while deaths increased by 3.3% annually to 1.82 million, exacerbating the country's population decline and contributing to labor shortages.
Russia's Is Staring Down a Labor Shortage of 11 Million People by 2030 — Business Insider
India's youth unemployment rate for ages 15-29 remained high at around 14.6% in 2025, nearly three times the national average unemployment rate of about 5.1%.
India's Unemployment Rate in 2025 — India Macro Indicators
Central Asian labor migrants comprise roughly 10.5 million of Russia's estimated 12-14 million migrant workers, representing about 75-87% of the total migrant workforce, while Central Asian ethnic groups make up less than 5% of Russia's total population of approximately 144 million.
Need and loathing in Russia: unpacking the labor migration paradox — Eurasianet
📰 Sources (3)
- India and Russia announced a deal to allow more Indian nationals to work in Russia.
- Putin stated Russia is 'ready to continue uninterrupted shipments of fuel' to India.
- Indian refiners have curbed purchases of Russian crude in recent weeks after the Trump administration doubled tariffs on India to 50% and as U.S. sanctions hit Kremlin-linked oil producers.
- Reliance Industries, India’s biggest importer of Russian crude, has stopped buying Russian crude for export products to comply with a new EU ban on refined products made from Russian crude from certain third countries, Reuters reported in late November.
- CREA reports increased sanctions-evading practices by vessels moving Russian oil, including use of fraudulently obtained flags.
- India will begin issuing free electronic visas for Russian tourists and group travel.
- Bilateral trade totaled $68.7 billion in India’s last fiscal year ended March, with India seeking to narrow a large deficit by boosting exports.
- Putin emphasized a “very trusting” military-technical relationship and reiterated Russia’s role as a reliable energy supplier to India.
- Modi highlighted continued civil nuclear cooperation and collaboration in clean energy, shipbuilding, fertilizers, and labor mobility.
- Both leaders said they are working toward an India–Eurasian Economic Union free-trade agreement; Putin said the FTA talks could help lift trade.