India asked by sanctions-hit Russia for parts for key sectors
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Saturday
February 04, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
SATURDAY, FEBRUARY 04, 2023
India asked by sanctions-hit Russia for parts for key sectors

South Asia

Reuters
29 November, 2022, 03:40 pm
Last modified: 29 November, 2022, 04:00 pm

Related News

  • US FDA says India-made eye drop linked to some infections, blindness and one death
  • Adani crisis not going to be indicative of how well Indian financial markets governed: Finance minister
  • Russia in favour of India becoming permanent member of UNSC: Envoy
  • Indian police arrest 1,800 men in crackdown on underage marriage
  • Indian shares set to rise on easing inflation concerns; Adani stocks in focus

India asked by sanctions-hit Russia for parts for key sectors

Reuters
29 November, 2022, 03:40 pm
Last modified: 29 November, 2022, 04:00 pm
 Russian President Vladimir Putin speaks during a session of the Russian-Indian business summit in New Delhi, India October 5, 2018. Yuri Kadobnov/Pool via REUTERS/File Photo
Russian President Vladimir Putin speaks during a session of the Russian-Indian business summit in New Delhi, India October 5, 2018. Yuri Kadobnov/Pool via REUTERS/File Photo

Moscow has sent India a list of more than 500 products for potential delivery including parts for cars, aircraft and trains, four sources familiar with the matter said, as sanctions squeeze Russia's ability to keep vital industries running.

The list, a version of which has been seen by Reuters in New Delhi, is provisional and it is unclear how many of the 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, said the source, as it tries to narrow a ballooning trade deficit with Russia. Some companies have expressed concern, however, about potentially falling foul of Western sanctions.

An industry source in Moscow, who declined to be named because of the sensitivity of the issue, said Russia's Ministry of Industry and Trade asked large companies to supply lists of raw materials and equipment they needed.

The source added that further discussion would be needed to agree specifications and volumes and that the outreach was not limited to India.

Russia's Ministry of Industry and Trade and the Indian foreign and commerce ministries and the prime minister's office did not immediately respond to requests for comment.

Russia's requests were made weeks ahead of Indian Foreign Minister Subrahmanyam Jaishankar's visit to Moscow starting 7 Nov, two of the Indian sources said. It was not immediately clear what was conveyed by New Delhi to Russia during the visit.

Prime Minister Narendra Modi's government has not joined Western countries in openly criticising Moscow for the war in Ukraine, and has sharply increased purchases of Russian oil that have cushioned it from some of the impact of sanctions.

During the Moscow visit, Jaishankar said India needed to boost exports to Russia to balance bilateral trade that is now tilted towards Russia.

He was accompanied on the visit by senior officials in charge of agriculture, petroleum and natural gas, ports and shipping, finance, chemicals and fertiliser, and trade - which he said showed the importance of ties with Russia.

RUSSIA'S STRUGGLES

Western sanctions have crippled supplies of some crucial products in Russia.

Airlines are experiencing an acute shortage of parts because almost all planes are foreign-made. Car parts are also in demand, with global automakers having left the market.

A source in Russia's car sales industry said the trade ministry had sent a list of car parts needed to corresponding ministries and state agencies in other countries, including India.

The list of items from Russia, which runs to nearly 14 pages, includes car engine parts like pistons, oil pumps and ignition coils. There is also demand for bumpers, seatbelts and infotainment systems.

For aircraft and helicopters, Russia requested 41 items including landing gear components, fuel systems, communication systems and fire extinguishing systems, life jackets and aviation tyres.

Also on the list were raw materials to produce paper, paper bags and consumer packaging and materials and equipment to produce textiles including yarns and dyes, according to the document reviewed by Reuters.

Russian metals producers like nickel and palladium giant Nornickel have said Western sanctions and self-sanctioning by some suppliers have made it difficult for industrial companies to obtain imported equipment, spare parts, materials and technologies in 2022, posing a challenge to their development programmes.

The list includes nearly 200 metallurgy items.

Russia has been India's largest supplier of military equipment for decades and it is the fourth-biggest market for Indian pharmaceutical products.

But with purchases of Russian oil soaring and coal and fertiliser shipments also strong, India is looking for ways to rebalance trade, the first Indian government source said.

Indian imports from Russia have grown nearly five times to $29 billion between 24 Feb and 20 Nov compared with $6 billion in the same period a year ago. Exports, meanwhile, have fallen to $1.9 billion from $2.4 billion, the source said.

India is hoping to boost its exports to nearly $10 billion over coming months with Russia's list of requests, according to the government source.

But some Indian companies are reluctant to export to Russia over fears of being sanctioned by the West, the lack of clarity over payments and challenges to securing insurance.

"There is a hesitancy among exporters ... particularly on sanctioned items," said Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO), a body supported by India's commerce ministry.

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.

Large Indian lenders are also reluctant to process direct rupee trade transactions with Russia, months after the mechanism was put in place, for fear of being sanctioned.

Top News / World+Biz / Europe

Russia / sanctions / India

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Is the IMF to blame for growing pressure on your wallet?
    Is the IMF to blame for growing pressure on your wallet?
  • Dr Salehuddin Ahmed. Illustration: TBS
    Reforms in banking must to sustain financial sector
  • Why 2012 reforms were not done is a million-dollar question
    Why 2012 reforms were not done is a million-dollar question

MOST VIEWED

  • Signage is seen outside of the Food and Drug Administration (FDA) headquarters in White Oak, Maryland, U.S., August 29, 2020. REUTERS/Andrew Kelly
    US FDA says India-made eye drop linked to some infections, blindness and one death
  • Indian finance minister Nirmala Sitharaman. Photo: HT
    Adani crisis not going to be indicative of how well Indian financial markets governed: Finance minister
  • Deepak Kumar, the owner of the jewellery shop in Rithani area of Meerut, discovered the burglary attempt when he opened the shop on Thursday morning. Photo: Collected
    'We are sorry': Burglars in India dig 15-foot tunnel to break into UP jewellery shop
  • A trader counts Pakistani rupee notes at a currency exchange booth in Peshawar, Pakistan December 3, 2018. REUTERS/Fayaz Aziz
    Pak Rupee continues to decline, closing at Rs276.58 against US dollar in interbank
  • FILE PHOTO: Krishna, 14, swings her four-month-old baby Alok on the porch of her house in a village near Baran, located in the northwestern state of Rajasthan, January 21, 2013. Krishna was married at 11. Picture taken January 21, 2013. REUTERS/Danish Siddiqui/File Photo
    Indian police arrest 1,800 men in crackdown on underage marriage
  • Pakistan 'will have to agree' to IMF conditions for bailout: PM Shehbaz Sharif
    Pakistan 'will have to agree' to IMF conditions for bailout: PM Shehbaz Sharif

Related News

  • US FDA says India-made eye drop linked to some infections, blindness and one death
  • Adani crisis not going to be indicative of how well Indian financial markets governed: Finance minister
  • Russia in favour of India becoming permanent member of UNSC: Envoy
  • Indian police arrest 1,800 men in crackdown on underage marriage
  • Indian shares set to rise on easing inflation concerns; Adani stocks in focus

Features

Andy Mukherjee. Sketch: TBS

What makes India's billionaires' support special for Adani

13h | Panorama
Photo: Rejaul Hafiz Rahi

A jackal farewell

14h | Earth
The trio spearheading the revival of book cover designs

The trio spearheading the revival of book cover designs

15h | Panorama
Six Jeep Wranglers and a special XJ Jeep Cherokee set out into the depths of Lalakhal, Sylhet for an experience of a lifetime. Photo: Ahbaar Mohammad

Jeep Life Bangladesh: A club for Jeep owners to harness the power of their vehicles

1d | Wheels

More Videos from TBS

A proper price formula can help investors to plan big

A proper price formula can help investors to plan big

1d | TBS Round Table
Rumors about Sarika that everyone thinks are true

Rumors about Sarika that everyone thinks are true

1d | TBS Entertainment
Mugging rife in Tejgaon, murder in Wari

Mugging rife in Tejgaon, murder in Wari

1d | TBS Current Affairs
What secrets are hidden behind Adani's wealth?

What secrets are hidden behind Adani's wealth?

1d | TBS Stories

Most Read

1
Bapex calls candidates for job test 9 years after advert!
Bangladesh

Bapex calls candidates for job test 9 years after advert!

2
Leepu realised his love for cars from a young age and for the last 40 years, he has transformed, designed and customised hundreds of cars. Photo: Collected
Panorama

'I am not crazy about cars anymore': Nizamuddin Awlia Leepu

3
Photo: Collected
Energy

8 Ctg power plants out of production

4
The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo
Economy

IMF approves $4.7 billion loan for Bangladesh, calls for ambitious reforms

5
Photo: Collected
Court

Japanese mother gets guardianship of daughters, free to leave country

6
Fund cut as Dhaka's fast-track transit projects on slow spending lane
Infrastructure

Fund cut as Dhaka's fast-track transit projects on slow spending lane

EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net