Russia Becomes India’s 3rd Largest Exporter Amid 700% Jump in Oil & Fertilizer Supplies

Both countries are determined to expand their economic engagement, including in crude oil trade, as Delhi vowed to continue to take advantage of “discounted” commodities to soothe inflationary pressure on its over 1.3 billion citizens.

Russia has emerged as India’s third largest exporter, following China and the UAE, having registered a 393% jump in supplies in September, primarily of crude oil, fertilizers, and coking coal.

Indian customs data showed that Russia exported commodities worth $4.95 billion in September 2022, compared to $1 billion in September last year. In total for the quarter between April and September, Russian exports were estimated at $21.3 billion against $4.1 billion for the same period in the last financial year.

Overall, India's “time-tested” partner has become its fifth largest trading partner, trailing behind the US, China, Saudi Arabia, and the UAE.

It's worth noting that just last month, Russia was rated India's seventh biggest trading partner, while in 2021, it stood at 25th place.

With surging imports, India’s trade deficit with Russia widened to $20.1 billion, next only to China's $44.6 billion. India’s exports to Russia, which is witnessing a withdrawal of Western companies following its special military operation in Ukraine, stood at $1.29 billion between April-September.

Delhi also expects a jump in exports in the coming months, as Commerce Secretary Sunil Barthwal said on Tuesday that the Reserve Bank of India has allowed Russian banks to open nine special Vostro accounts with two Indian lenders — Uco Bank and IndusInd Bank — to facilitate overseas trade in rupees.

“Nine accounts have been opened. One each in Uco Bank, Sberbank, and VTB and six with IndusInd Bank. There are six different Russian banks who have opened special vostro accounts in IndusInd,” Barthwal said.

Earlier this month, Indian Foreign Minister S. Jaishankar said that New Delhi was looking to create long-term sustainable economic engagement with its “steady and time-tested partner” Russia.