Putin Calls for Fast-Tracking India–EAEU Preferential Trade Agreement

New Delhi: Russian President Vladimir Putin on Friday said that the proposed preferential trade agreement between India and the Eurasian Economic Union (EAEU) should be signed at the earliest, as it would help remove barriers and make the movement of goods, services and capital easier. India and the EAEU held their first round of negotiations on the free trade pact last week.

The terms of reference for the agreement were finalised on August 20 between India and the EAEU, which consists of Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan.

Addressing the India–Russia Business Forum, Putin said he and Prime Minister Narendra Modi have set a trade target of USD 100 billion by 2030. With current trade estimated at around USD 70 billion, he said achieving the new target would require strong participation from the business communities of both countries.

Putin, who is on a two-day official visit here, said it is important for both regions to reduce barriers for facilitating the movement of goods, services and capital. "In this regard, a strong impetus, as it seems, could be given by the rapid signing of a preferential trade agreement between India and the Eurasian Economic Union," he noted.

Putin said the Russian delegation is here not only to discuss energy issues, but also to sign contracts for the supplies of oil and gas. "What we want is the development of our multi-faceted relations with India in various fields," he said, adding that Russian firms are ready to increase manifold purchases of goods and services from India.

Putin also emphasised that free trade is "unthinkable" without a resilient bilateral settlement and reliable payment and insurance mechanisms. He said tangible advantages are offered by the use of national currencies in trade. It is important to ensure uninterrupted financial transactions regardless of external development, he added.

The India-Russia cooperation, he said, should not be limited to trade alone. "We should move on to enhance our industrial cooperation together...We are ready for broad cooperation within the field of artificial intelligence, where our countries have already advanced a lot," he said.

Earlier in the day, Putin and Modi held summit-level talks that generated global attention.