NEW DELHI, Nov 29 (Reuters) – Moscow has sent India a list of more than 500 deliverables, including parts for cars, planes and trains, four sources familiar with the matter said, as sanctions reduce Russia’s ability to keep its vital industries running. .
The list, a version of which was seen by Reuters in New Delhi, is tentative and it is unclear how many items will eventually be exported and in what quantity, but an Indian government source said the request was unusual in its scope .
India is keen to boost trade in this way, the source said, as it tries to reduce a burgeoning trade deficit with Russia. Some companies, however, have expressed concern about the possibility of falling under Western sanctions.
An industry source in Moscow, who declined to be named due to the sensitivity of the issue, said Russia’s Ministry of Industry and Trade has asked major companies to provide lists of raw materials and equipment they needed.
The source added that further discussions would be needed to agree on specs and volumes and the scope was not limited to India.
Russia’s Ministry of Industry and Trade and India’s Foreign and Trade Ministries and Prime Minister’s Office did not immediately respond to requests for comment.
The Russian demands were made weeks ahead of Indian Foreign Minister Subrahmanyam Jaishankar’s visit to Moscow from Nov. 7, two of the Indian sources said. It was not immediately clear what had been transmitted from New Delhi to Russia during the visit.
Prime Minister Narendra Modi’s government has not joined Western countries in openly criticizing Moscow for the war in Ukraine, and has sharply increased purchases of Russian oil that have cushioned it in part from the impact of sanctions.
During the visit to Moscow, Jaishankar said India needs to increase its exports to Russia to balance the bilateral trade which is now Russia oriented.
During his visit, he was accompanied by senior officials responsible for agriculture, petroleum and natural gas, ports and shipping, finance, chemicals and fertilizers, and trade – which he said , shows the importance of ties with Russia. Read more
Western sanctions have crippled the supply of some crucial products to Russia.
Airlines are experiencing a severe shortage of parts as almost all aircraft are manufactured overseas. Auto parts are also in demand as global automakers exit the market.
A source from Russia’s car sales industry said the Ministry of Commerce has sent a list of needed auto parts to relevant ministries and state agencies in other countries, including India.
The list of items from Russia, which is almost 14 pages long, includes car engine parts like pistons, oil pumps and ignition coils. There is also demand for bumpers, seat belts and infotainment systems.
For planes and helicopters, Russia requested 41 items, including landing gear components, fuel systems, communication systems and fire extinguishing systems, life jackets and tires. ‘aviation.
Also on the list were raw materials to produce paper, paper bags and consumer packaging as well as materials and equipment to produce textiles, including yarns and dyes, according to the document reviewed by Reuters.
Russian metal producers like nickel and palladium giant Nornickel (GMKN.MM) said Western sanctions and self-sanctions by some suppliers have made it difficult for industrial companies to obtain equipment, parts spare parts, materials and technologies imported in 2022, which poses a challenge for their development programs. Read more
The list includes nearly 200 metallurgy items.
Russia has been India’s biggest supplier of military equipment for decades and it is the fourth biggest market for Indian pharmaceuticals.
But with soaring Russian oil purchases and equally strong coal and fertilizer shipments, India is looking for ways to rebalance trade, India’s top government source said.
India’s imports from Russia jumped almost fivefold to $29 billion between February 24 and November 20, from $6 billion in the same period a year ago. Exports, meanwhile, fell to $1.9 billion from $2.4 billion, the source said.
India hopes to boost its exports to nearly $10 billion in the coming months with Russia’s list of demands, according to the government source.
But some Indian companies are reluctant to export to Russia for fear of Western sanction, lack of clarity on payments and difficulties in obtaining insurance.
“There is hesitation among exporters…especially on sanctioned items,” said Ajay Sahai, chief executive of the Federation of Indian Export Organizations (FIEO), a body supported by India’s Ministry of Commerce.
Sahai, who is aware of Russia’s request, said even small and medium-sized exporters who could meet some of the requests and had previously exported to Iran after Western sanctions, were not enthusiastic.
India’s big lenders are also reluctant to handle direct rupee business transactions with Russia, months after the mechanism was put in place, for fear of being sanctioned.
Additional reporting by Manoj Kumar in New Delhi; Graphics by Kripa Jayaram; Editing by Mike Collett-White and Louise Heavens
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