India Russia Relations
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WolfPack86
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India, Russia cut deal on payment delays, defense production
NEW DELHI — India and Russia have agreed to resolve delayed payments related to defense contracts, while also formalizing a plan for the local production of Russian equipment and spare parts.
The planned resolution comes as India and China are caught up in a territorial dispute near their borders, and as the West implements sanctions on Moscow amid Russia’s invasion of Ukraine.
As a result of the economic restrictions, India has been unable to make payments to Russia since April 2019. India has attempted to install an alternative rupee-ruble payment to cover the costs, but Russia declined the proposal. The amount due totals about $3 billion as of April 2023, a government source told Defense News on the condition of anonymity because the individual was not authorized to speak to the press.
Now, the two governments have achieved a breakthrough, according to sources with knowledge of the agreement, which was made April 28 during bilateral talks involving Indian Defence Minister Rajnath Singh and his Russian counterpart Sergei Shoigu.
Under the new plan, India’s Defence Ministry will make payments through Russia’s financial messaging system. The Financial Messaging System of the Bank of Russia, or SPFS, is an alternative to the Swift system, which supports international financial transfers; several governments have limited Russia’s ability to use Swift.
Indian banks designated by the government are to make pending payments for signed defense contracts between India and the Russian arms export agency Rosoboronexport. If the Russian ruble transactions are blocked, the trade settlement will instead involve Indian rupees.
Local production
Russia also agreed to support India’s defense industry through the economic initiative Make in India, according to a statement from the Indian Defence Ministry.
“The two Ministers discussed wide-ranging issues of bilateral defence cooperation, including military-to-military ties as well as industrial partnership,” the ministry said. “They also discussed the Russian defence industry’s participation in the ‘Make in India’ initiative and ways to provide further impetus to it.”
Russian Embassy spokesman Dimitry Solodov did not respond to multiple requests for comment.
However, sources — speaking to Defense News on the condition of anonymity because they were not authorized to speak to the press — said Russian original equipment manufacturers are to set up joint ventures with private defense enterprises in India to locally produce spare parts, systems and subassembly material, as well as to perform maintenance, repair, overhaul and upgrade work in order to keep Russian equipment operational for India’s military.
Under the plan, those Russian manufacturers “can retain up to 49% equity holding” in the private Indian businesses, a source noted.
“Under this initiative, Russian OEMs will also build weapons and military equipment in India with a minimum of 50%/60% indigenous content,” the source said.
The variation in percentage is due to differing requirements under the Make in India effort. The category “Buy and Make Indian” requires 50%, while “Buy Indian” requires 60% given the foreign designs involved.
Currently, India’s military inventory is made up of 60% of Russian-made systems, a government source said, adding that for the last three to four years, Russia has failed to supply almost 40% of the spare parts on order for India.
“I have no doubt that Indian companies, including a large number of our small-scale enterprises, can manufacture spares, assemblies and subassemblies,” Amit Cowshish, a former financial adviser at India’s MoD, told Defense News.
State-run defense entities that could seek joint ventures with Russian original equipment manufacturers include Armoured Vehicles Nigam Ltd.; Advanced Weapons and Equipment India Ltd.; Bharat Electronics Ltd.; Bharat Dynamics Ltd.; Bharat Heavy Electricals Ltd.; Hindustan Aeronautics Ltd.; India Optel Ltd.; and Munitions India Ltd.
Private defense firms include: Ananth Technologies; Bharat Forge; Indesys Equipments; MKU Ltd.; and PTC Industries.
Likewise, Russian manufacturers that could participate include: Uralvagonzavod; Tecmash; Bazalt; Tactical Missiles Corp.; NPO Mashinostroyenia; United Aircraft Corp.; Russian Helicopters; Oboronprom; Almaz-Antey; United Engine Corp.; United Shipbuilding Corp.; Zvezdochka Ship Repair Center; Admiralty Shipyards; Aerospace Equipment Corp.; and Urals Optical and Mechanical Plant.
Practical plans?
But Cowshish said he doubts this bilateral arrangement is feasible given the need for varying degrees of cooperation, which is unlikely to take place.
Alternatively, he explained, Indian companies could develop products with indigenous designs or in technical collaboration with countries that have both used Russian-origin equipment and have developed stronger technical capabilities than India.
Ruslan Pukhov, who leads the Moscow-based Centre for Analysis of Strategies and Technologies think tank, noted Russia has managed to continue limited supplies to India despite the lack of payments. But unless the latest payment plan works soon, Russian supplies to India may come to a halt, he told Defense News.
Furthermore, retired Indian Air Force squadron leader and independent Russian military affairs expert Viajinder Thakur said the Make in India deal may not work as expected.
“Russian OEMs likely don’t have the bandwidth to help India localize [the] manufacture of spares, as the Russian military-industrial complex, or MIC, is working on a war footing for its own requirements,” Thakur told Defense News. “But India may not need the help of Russian OEMs. Under the arrangement, Indian companies can obtain the specification and drawings from Russia to facilitate local manufacture. Indian MIC needs to similarly work on a war footing. There is no other solution.”
Thakur added there can be little doubt the flow of Russian spares to India will remain constrained as long as Moscow is at war.
“Also, Russia’s ability to supply spare parts as well as manufacturing capability is likely to be constrained by Western sanctions,” Thakur said. “Long term, India’s best option is to localize production of Russian equipment spares.”
www.defensenews.com
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NEW DELHI — India and Russia have agreed to resolve delayed payments related to defense contracts, while also formalizing a plan for the local production of Russian equipment and spare parts.
The planned resolution comes as India and China are caught up in a territorial dispute near their borders, and as the West implements sanctions on Moscow amid Russia’s invasion of Ukraine.
As a result of the economic restrictions, India has been unable to make payments to Russia since April 2019. India has attempted to install an alternative rupee-ruble payment to cover the costs, but Russia declined the proposal. The amount due totals about $3 billion as of April 2023, a government source told Defense News on the condition of anonymity because the individual was not authorized to speak to the press.
Now, the two governments have achieved a breakthrough, according to sources with knowledge of the agreement, which was made April 28 during bilateral talks involving Indian Defence Minister Rajnath Singh and his Russian counterpart Sergei Shoigu.
Under the new plan, India’s Defence Ministry will make payments through Russia’s financial messaging system. The Financial Messaging System of the Bank of Russia, or SPFS, is an alternative to the Swift system, which supports international financial transfers; several governments have limited Russia’s ability to use Swift.
Indian banks designated by the government are to make pending payments for signed defense contracts between India and the Russian arms export agency Rosoboronexport. If the Russian ruble transactions are blocked, the trade settlement will instead involve Indian rupees.
Local production
Russia also agreed to support India’s defense industry through the economic initiative Make in India, according to a statement from the Indian Defence Ministry.
“The two Ministers discussed wide-ranging issues of bilateral defence cooperation, including military-to-military ties as well as industrial partnership,” the ministry said. “They also discussed the Russian defence industry’s participation in the ‘Make in India’ initiative and ways to provide further impetus to it.”
Russian Embassy spokesman Dimitry Solodov did not respond to multiple requests for comment.
However, sources — speaking to Defense News on the condition of anonymity because they were not authorized to speak to the press — said Russian original equipment manufacturers are to set up joint ventures with private defense enterprises in India to locally produce spare parts, systems and subassembly material, as well as to perform maintenance, repair, overhaul and upgrade work in order to keep Russian equipment operational for India’s military.
Under the plan, those Russian manufacturers “can retain up to 49% equity holding” in the private Indian businesses, a source noted.
“Under this initiative, Russian OEMs will also build weapons and military equipment in India with a minimum of 50%/60% indigenous content,” the source said.
The variation in percentage is due to differing requirements under the Make in India effort. The category “Buy and Make Indian” requires 50%, while “Buy Indian” requires 60% given the foreign designs involved.
Currently, India’s military inventory is made up of 60% of Russian-made systems, a government source said, adding that for the last three to four years, Russia has failed to supply almost 40% of the spare parts on order for India.
“I have no doubt that Indian companies, including a large number of our small-scale enterprises, can manufacture spares, assemblies and subassemblies,” Amit Cowshish, a former financial adviser at India’s MoD, told Defense News.
State-run defense entities that could seek joint ventures with Russian original equipment manufacturers include Armoured Vehicles Nigam Ltd.; Advanced Weapons and Equipment India Ltd.; Bharat Electronics Ltd.; Bharat Dynamics Ltd.; Bharat Heavy Electricals Ltd.; Hindustan Aeronautics Ltd.; India Optel Ltd.; and Munitions India Ltd.
Private defense firms include: Ananth Technologies; Bharat Forge; Indesys Equipments; MKU Ltd.; and PTC Industries.
Likewise, Russian manufacturers that could participate include: Uralvagonzavod; Tecmash; Bazalt; Tactical Missiles Corp.; NPO Mashinostroyenia; United Aircraft Corp.; Russian Helicopters; Oboronprom; Almaz-Antey; United Engine Corp.; United Shipbuilding Corp.; Zvezdochka Ship Repair Center; Admiralty Shipyards; Aerospace Equipment Corp.; and Urals Optical and Mechanical Plant.
Practical plans?
But Cowshish said he doubts this bilateral arrangement is feasible given the need for varying degrees of cooperation, which is unlikely to take place.
Alternatively, he explained, Indian companies could develop products with indigenous designs or in technical collaboration with countries that have both used Russian-origin equipment and have developed stronger technical capabilities than India.
Ruslan Pukhov, who leads the Moscow-based Centre for Analysis of Strategies and Technologies think tank, noted Russia has managed to continue limited supplies to India despite the lack of payments. But unless the latest payment plan works soon, Russian supplies to India may come to a halt, he told Defense News.
Furthermore, retired Indian Air Force squadron leader and independent Russian military affairs expert Viajinder Thakur said the Make in India deal may not work as expected.
“Russian OEMs likely don’t have the bandwidth to help India localize [the] manufacture of spares, as the Russian military-industrial complex, or MIC, is working on a war footing for its own requirements,” Thakur told Defense News. “But India may not need the help of Russian OEMs. Under the arrangement, Indian companies can obtain the specification and drawings from Russia to facilitate local manufacture. Indian MIC needs to similarly work on a war footing. There is no other solution.”
Thakur added there can be little doubt the flow of Russian spares to India will remain constrained as long as Moscow is at war.
“Also, Russia’s ability to supply spare parts as well as manufacturing capability is likely to be constrained by Western sanctions,” Thakur said. “Long term, India’s best option is to localize production of Russian equipment spares.”
India, Russia cut deal on payment delays, defense production
As a result of the economic restrictions, India has been unable to make payments to Russia since April 2019.
www.defensenews.com
LondonParisTokyo
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If you read between the lines its pretty obvious. India is being used as an alternate manufacturing hub for Russia. Now there's multiple production lines to provide ammunition to Russia during their war effort, while simultaneously increasing business in India, artificially balancing the trade imbalance
Blademaster
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Exactly what I predicted earlier.
WolfPack86
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Russia threatens India to cancel energy and arms deals
Moscow – : Relations between India and Russia are changing after the war between Russia and Ukraine, while relations between India and Russia are an important pillar of the foreign policy of both the countries. India has always considered Russia a reliable partner. Now these relationships are changing. According to media reports, Russia has threatened India to cancel energy and arms deals. Russia is likely to be blacklisted by the Financial Action Task Force (FATF) by June. Russia has sought help from India to avoid coming in this list. It has also threatened to cancel all deals with India for not helping or failing in this.
According to a media report, isolated Russia has appealed to India for help. The pressure from FATF is now coming out as a threat from Russia. FATF is an organization to ban money laundering and terrorist financing. It is to have a meeting in June, in which a decision on sanctions on Russia may be taken.
India is its member and in February 2022, when the war with Ukraine started, the FATF terminated Russia’s membership. Now in such a situation, he is seeking help from those countries which can save him from being blacklisted.
Russia is already under a lot of sanctions because of the Russia-Ukraine war. If it is blacklisted by FATF in such a situation, then it will come in the same category as Russia, North Korea, Iran and Myanmar. If Russia is blacklisted, then FATF members, banks, investment companies and payment systems will have to be careful. Even they will have the right to retaliate against Russia. If Russia, which has been facing sanctions since the war, comes in the gray list of FATF, then the remaining economy will also be destroyed. In such a situation, coming in the list of FATF would be a step to double his troubles.
Russia has warned India that if it comes in the blacklist, then the defense, energy and other deals between the two countries will be in danger. Russia has threatened to cancel arms exports, cooperation between oil companies Rosneft and Nayara Energy Ltd and development of railway corridors. Russia has been India’s main arms supplier. Russia has said that the deal will be at risk in FATF’s gray list.
www.internationalnewsandviews.com
Moscow – : Relations between India and Russia are changing after the war between Russia and Ukraine, while relations between India and Russia are an important pillar of the foreign policy of both the countries. India has always considered Russia a reliable partner. Now these relationships are changing. According to media reports, Russia has threatened India to cancel energy and arms deals. Russia is likely to be blacklisted by the Financial Action Task Force (FATF) by June. Russia has sought help from India to avoid coming in this list. It has also threatened to cancel all deals with India for not helping or failing in this.
According to a media report, isolated Russia has appealed to India for help. The pressure from FATF is now coming out as a threat from Russia. FATF is an organization to ban money laundering and terrorist financing. It is to have a meeting in June, in which a decision on sanctions on Russia may be taken.
India is its member and in February 2022, when the war with Ukraine started, the FATF terminated Russia’s membership. Now in such a situation, he is seeking help from those countries which can save him from being blacklisted.
Russia is already under a lot of sanctions because of the Russia-Ukraine war. If it is blacklisted by FATF in such a situation, then it will come in the same category as Russia, North Korea, Iran and Myanmar. If Russia is blacklisted, then FATF members, banks, investment companies and payment systems will have to be careful. Even they will have the right to retaliate against Russia. If Russia, which has been facing sanctions since the war, comes in the gray list of FATF, then the remaining economy will also be destroyed. In such a situation, coming in the list of FATF would be a step to double his troubles.
Russia has warned India that if it comes in the blacklist, then the defense, energy and other deals between the two countries will be in danger. Russia has threatened to cancel arms exports, cooperation between oil companies Rosneft and Nayara Energy Ltd and development of railway corridors. Russia has been India’s main arms supplier. Russia has said that the deal will be at risk in FATF’s gray list.
Russia threatens India to cancel energy and arms deals - INVC
Russia has threatened India to cancel energy and arms deals. Russia is likely to be blacklisted by the Financial Action Task Force
www.internationalnewsandviews.com
maximus777
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Suit yourself. India is one of the large economies saving your ass but then again feel free shoot yourself in the foot.Russia threatens India to cancel energy and arms deals
Moscow – : Relations between India and Russia are changing after the war between Russia and Ukraine, while relations between India and Russia are an important pillar of the foreign policy of both the countries. India has always considered Russia a reliable partner. Now these relationships are changing. According to media reports, Russia has threatened India to cancel energy and arms deals. Russia is likely to be blacklisted by the Financial Action Task Force (FATF) by June. Russia has sought help from India to avoid coming in this list. It has also threatened to cancel all deals with India for not helping or failing in this.
According to a media report, isolated Russia has appealed to India for help. The pressure from FATF is now coming out as a threat from Russia. FATF is an organization to ban money laundering and terrorist financing. It is to have a meeting in June, in which a decision on sanctions on Russia may be taken.
India is its member and in February 2022, when the war with Ukraine started, the FATF terminated Russia’s membership. Now in such a situation, he is seeking help from those countries which can save him from being blacklisted.
Russia is already under a lot of sanctions because of the Russia-Ukraine war. If it is blacklisted by FATF in such a situation, then it will come in the same category as Russia, North Korea, Iran and Myanmar. If Russia is blacklisted, then FATF members, banks, investment companies and payment systems will have to be careful. Even they will have the right to retaliate against Russia. If Russia, which has been facing sanctions since the war, comes in the gray list of FATF, then the remaining economy will also be destroyed. In such a situation, coming in the list of FATF would be a step to double his troubles.
Russia has warned India that if it comes in the blacklist, then the defense, energy and other deals between the two countries will be in danger. Russia has threatened to cancel arms exports, cooperation between oil companies Rosneft and Nayara Energy Ltd and development of railway corridors. Russia has been India’s main arms supplier. Russia has said that the deal will be at risk in FATF’s gray list.
Russia threatens India to cancel energy and arms deals - INVC
Russia has threatened India to cancel energy and arms deals. Russia is likely to be blacklisted by the Financial Action Task Force
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Let's give a few rotting t72 to ukriane.Russia threatens India to cancel energy and arms deals
Moscow – : Relations between India and Russia are changing after the war between Russia and Ukraine, while relations between India and Russia are an important pillar of the foreign policy of both the countries. India has always considered Russia a reliable partner. Now these relationships are changing. According to media reports, Russia has threatened India to cancel energy and arms deals. Russia is likely to be blacklisted by the Financial Action Task Force (FATF) by June. Russia has sought help from India to avoid coming in this list. It has also threatened to cancel all deals with India for not helping or failing in this.
According to a media report, isolated Russia has appealed to India for help. The pressure from FATF is now coming out as a threat from Russia. FATF is an organization to ban money laundering and terrorist financing. It is to have a meeting in June, in which a decision on sanctions on Russia may be taken.
India is its member and in February 2022, when the war with Ukraine started, the FATF terminated Russia’s membership. Now in such a situation, he is seeking help from those countries which can save him from being blacklisted.
Russia is already under a lot of sanctions because of the Russia-Ukraine war. If it is blacklisted by FATF in such a situation, then it will come in the same category as Russia, North Korea, Iran and Myanmar. If Russia is blacklisted, then FATF members, banks, investment companies and payment systems will have to be careful. Even they will have the right to retaliate against Russia. If Russia, which has been facing sanctions since the war, comes in the gray list of FATF, then the remaining economy will also be destroyed. In such a situation, coming in the list of FATF would be a step to double his troubles.
Russia has warned India that if it comes in the blacklist, then the defense, energy and other deals between the two countries will be in danger. Russia has threatened to cancel arms exports, cooperation between oil companies Rosneft and Nayara Energy Ltd and development of railway corridors. Russia has been India’s main arms supplier. Russia has said that the deal will be at risk in FATF’s gray list.
Russia threatens India to cancel energy and arms deals - INVC
Russia has threatened India to cancel energy and arms deals. Russia is likely to be blacklisted by the Financial Action Task Force
LOLRussia threatens India to cancel energy and arms deals
Moscow – : Relations between India and Russia are changing after the war between Russia and Ukraine, while relations between India and Russia are an important pillar of the foreign policy of both the countries. India has always considered Russia a reliable partner. Now these relationships are changing. According to media reports, Russia has threatened India to cancel energy and arms deals. Russia is likely to be blacklisted by the Financial Action Task Force (FATF) by June. Russia has sought help from India to avoid coming in this list. It has also threatened to cancel all deals with India for not helping or failing in this.
According to a media report, isolated Russia has appealed to India for help. The pressure from FATF is now coming out as a threat from Russia. FATF is an organization to ban money laundering and terrorist financing. It is to have a meeting in June, in which a decision on sanctions on Russia may be taken.
India is its member and in February 2022, when the war with Ukraine started, the FATF terminated Russia’s membership. Now in such a situation, he is seeking help from those countries which can save him from being blacklisted.
Russia is already under a lot of sanctions because of the Russia-Ukraine war. If it is blacklisted by FATF in such a situation, then it will come in the same category as Russia, North Korea, Iran and Myanmar. If Russia is blacklisted, then FATF members, banks, investment companies and payment systems will have to be careful. Even they will have the right to retaliate against Russia. If Russia, which has been facing sanctions since the war, comes in the gray list of FATF, then the remaining economy will also be destroyed. In such a situation, coming in the list of FATF would be a step to double his troubles.
Russia has warned India that if it comes in the blacklist, then the defense, energy and other deals between the two countries will be in danger. Russia has threatened to cancel arms exports, cooperation between oil companies Rosneft and Nayara Energy Ltd and development of railway corridors. Russia has been India’s main arms supplier. Russia has said that the deal will be at risk in FATF’s gray list.
Russia threatens India to cancel energy and arms deals - INVC
Russia has threatened India to cancel energy and arms deals. Russia is likely to be blacklisted by the Financial Action Task Force
Blademaster
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Fake news.Russia threatens India to cancel energy and arms deals
Moscow – : Relations between India and Russia are changing after the war between Russia and Ukraine, while relations between India and Russia are an important pillar of the foreign policy of both the countries. India has always considered Russia a reliable partner. Now these relationships are changing. According to media reports, Russia has threatened India to cancel energy and arms deals. Russia is likely to be blacklisted by the Financial Action Task Force (FATF) by June. Russia has sought help from India to avoid coming in this list. It has also threatened to cancel all deals with India for not helping or failing in this.
According to a media report, isolated Russia has appealed to India for help. The pressure from FATF is now coming out as a threat from Russia. FATF is an organization to ban money laundering and terrorist financing. It is to have a meeting in June, in which a decision on sanctions on Russia may be taken.
India is its member and in February 2022, when the war with Ukraine started, the FATF terminated Russia’s membership. Now in such a situation, he is seeking help from those countries which can save him from being blacklisted.
Russia is already under a lot of sanctions because of the Russia-Ukraine war. If it is blacklisted by FATF in such a situation, then it will come in the same category as Russia, North Korea, Iran and Myanmar. If Russia is blacklisted, then FATF members, banks, investment companies and payment systems will have to be careful. Even they will have the right to retaliate against Russia. If Russia, which has been facing sanctions since the war, comes in the gray list of FATF, then the remaining economy will also be destroyed. In such a situation, coming in the list of FATF would be a step to double his troubles.
Russia has warned India that if it comes in the blacklist, then the defense, energy and other deals between the two countries will be in danger. Russia has threatened to cancel arms exports, cooperation between oil companies Rosneft and Nayara Energy Ltd and development of railway corridors. Russia has been India’s main arms supplier. Russia has said that the deal will be at risk in FATF’s gray list.
Russia threatens India to cancel energy and arms deals - INVC
Russia has threatened India to cancel energy and arms deals. Russia is likely to be blacklisted by the Financial Action Task Force
Blademaster
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Don’t fall for such western propaganda. Russia and India will find a way out.
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Doubt that is real. Russians may not be angels but they are not egotistic idiots. This article seems like a fluff piece from some firangistan-backed "journalist".
Russians are the ones pulling us into all multilateral that we don't want to be parts of like SCO for example, because they want to counterbalance the Chinese.
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Has anyone seen this documentary? It's a year old but talks about Russia's massive Arctic Silk Road mission. They are putting in $150 billion on the Taymyr Peninsula (pretty hostile weather, not to mention remote AF with only raw fish and reindeer meat readily available) to create the biggest Arctic oil container port.
The faster the ice melts, the more resources will be unlocked. Also, a completely new shipping route that would make Europe completely slave to Russian whims. We need to capitalize on this big time and early before Chinis grab it all.
Given the suspension of the Arctic Council, Russia wants to bring us in. I hope that our new Indian Arctic Policy covers this project.
Sidenote: Reindeer meat is like eating rubber at that temperature. The taste buds don't function and food is just to keep you alive rather than an activity of leisure or bonding. Hated the experience myself. Heavens help the ONGC vegetarian folks if stationed there in the near future
The faster the ice melts, the more resources will be unlocked. Also, a completely new shipping route that would make Europe completely slave to Russian whims. We need to capitalize on this big time and early before Chinis grab it all.
Given the suspension of the Arctic Council, Russia wants to bring us in. I hope that our new Indian Arctic Policy covers this project.
Sidenote: Reindeer meat is like eating rubber at that temperature. The taste buds don't function and food is just to keep you alive rather than an activity of leisure or bonding. Hated the experience myself. Heavens help the ONGC vegetarian folks if stationed there in the near future
Azaad
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The video preceded the Ukrainian war . Today all bets are off . Moreover the Arctic route is primarily beneficial to Russia connecting it's European parts to it's Asian landmass which otherwise would require passage thru the Suez Canal & countries on the periphery of Asia namely China , RoK , Japan , ASEAN to an extent , etc .Has anyone seen this documentary? It's a year old but talks about Russia's massive Arctic Silk Road mission. They are putting in $150 billion on the Taymyr Peninsula (pretty hostile weather, not to mention remote AF with only raw fish and reindeer meat readily available) to create the biggest Arctic oil container port.
The faster the ice melts, the more resources will be unlocked. Also, a completely new shipping route that would make Europe completely slave to Russian whims. We need to capitalize on this big time and early before Chinis grab it all.
Given the suspension of the Arctic Council, Russia wants to bring us in. I hope that our new Indian Arctic Policy covers this project.
Sidenote: Reindeer meat is like eating rubber at that temperature. The taste buds don't function and food is just to keep you alive rather than an activity of leisure or bonding. Hated the experience myself. Heavens help the ONGC vegetarian folks if stationed there in the near future
To a country like India we're bang in the centre equidistant from it's European ports & ports in the far East like Vladivostok.
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Vladivostok port cannot handle the sheer volumes of everything that the Ruskies export. That's St Peterberg's job. But given that the western ports are pretty much going to be useless for any trade, the Arctic will become the route.
Europe is pretty much going to have to make an ugly divorce with the US soon.
The Arctic route will benefit European businesses a lot. Remember, European brands are doing open business with countries where there are open cases of slave labour. Once their businesses see the benefit of trading using shorter routes, many will walk away from the current geopolitical drama.
France and Germany will be the first ones; these countries don't mind trading with the devil if it serves them. The UK, Poland, Sweden, Norway and the Netherlands will remain loyal to the US. Spain, Italy, and Greece will use the I2U2 corridor since the Mediterranean is their home.
As for India, we need to jump into the infrastructure development and invest in the energy blocs in Kola and Taymyr peninsula region. That region is as remote in real life as it looks but it's being picked up fast by China. If we want to keep our leverage game up we need to make a move to the Arctic.
Novaya Zemlya is off-limits due to safety concerns, but the waters around it are extremely resource-rich and accessible.
Russians will be pulling everyone into the Arctic now with a more expansive BRICS coming up; UAE and Saudi will jump in with their money for investing happily over time. Then there are countries like Indonesia and Turkey which play both sides openly or covertly.
We simply don't have a choice.
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And it's not just stopping there. Russia is having some serious plans to get us on board considering that they are building their own space station and have invited quite a few countries. Check the link below. CNN won't let me copy the text so I am pasting screenshots.
Considering that we have accepted the invitation for the Chinese Tiangong Space Station that's in development, I have a feeling ISRO might accept this invitation while working with NASA on commercial contracts to make stuff for the current ISS and the ISS 2.0 in the plans.
Brazil and a fledgling space program so it most likely will join while South Africa is more or less good at making communication satellites but has no launch capabilities of its own so they will also certainly join.
Russia proposes joint research module on the space station for China, India, Brazil and South Africa
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Not replaced; supplemented.
Imports are a leverage and if we shut something out, we end up losing that strategic leverage.
Long-term contracts! now that is uncharted territory. Looks like sanctions are actually going to make Russia richer and more prosperous with lesser foreign control than ever. According to some US sources, the Ruble lost quite a bit of value, despite the capital controls.
Russian Ruble tanks amid Putin's war economy
Though it remains to be seen how authentic it is since Ruble is no longer valued alongside the Dollar and trying to bring the two under the same comparison category is like comparing potatoes to watermelons.
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Seems like GoI has rejected the Yuan.
