'Losses by India...': Putin's trade balance plan, big praise for ‘very wise’ Modi amid Trump tariffs

Putin said measures were being devised to soften the trade imbalance between Russia and India over high import of crude by New Delhi.

Russian President Vladimir Putin yet again reaffirmed ties with India as he heaped praise on Prime Minister Narendra Modi amid ongoing trade tensions between India and the US. President Donald Trump recently slapped 50 per cent tariffs on India, half of them for doing oil trade with Russia.

Vladimir Putin, left, and PM Narendra Modi at the Shanghai Cooperation Organization (SCO) summit in Tianjin, China(PTI)

The move came as a pressure tactic on both India and Russia in a bid to stop the Kremlin's ongoing military conflict with Ukraine. Amid ongoing trade negotiations between India and the US, Putin expressed faith that PM Modi would never bow down to the tariff pressure.

Putin argued that India faces a lose-lose situation either way whether or not it gives up on Russian energy. Ending oil trade with Russia could cost India an estimated $9–10 billion, while refusing to do so could trigger sanctions, leading to similar losses, he said.

"So why refuse if it also carries domestic political costs? [Indian people] will never allow themselves to be humiliated by anyone. I know Prime Minister [Narendra] Modi, he will also not make any such decisions," Putin said at the international Valdai discussion forum in South Russia. "The losses faced by India due to punitive US tariffs would be balanced by crude imports from Russia, plus it will gain prestige as a sovereign nation," he added.

While he spoke of expanding economic cooperation between Russia and India, Putin also pointed to some logistical issues to fully unlock these opportunities.

He once again emphasised the ties between India and Russia, tracing them back to the Soviet era when India was fighting for independence. "In India, they remember this, they know it, and they value it. We appreciate that India has not forgotten it," he said, further highlighting the ease with which the countries address each other's concerns.

Putin-Modi camaraderie, and Trump

In his latest remarks, Putin called PM Modi a "balanced, wise", and "nationally oriented" leader. A display of bonhomie between the two leaders was recently seen in China, where they met on the sidelines of the SCO Summit. They shared a hug and a car ride, and both hailed India and Russia's close cooperation.

In the days that followed this key meeting, Donald Trump also softened his tone towards India and called Modi a "great prime minister", whom he will "always be friends with". This gesture was reciprocated by PM Modi as well, who said he “deeply appreciates” Trump's sentiments and positive assessment of India-US ties.

However, his tone again shifted during his remarks at the United Nations General Assembly, where he labeled China and India as the "primary funders" of the Ukraine war, accusing them of financing it by continuing to purchase Russian oil.

(With PTI, ANI inputs)