Russian President Vladimir Putin has proposed a significant expansion of trade and transport links with India, emphasizing the "very big potential" for economic cooperation between the two nations. The move comes amidst heightened global anxiety over shipping routes, particularly following recent disruptions in the Strait of Hormuz.
New Corridors and INSTC Development
Moscow is actively discussing new international shipping and connectivity routes with New Delhi, including a stronger focus on the International North-South Transport Corridor (INSTC). Putin highlighted Russia's readiness to provide credit resources for the INSTC's development, noting that progress on certain sections, particularly those in Iran, is crucial for its full operationalization.
The Russian President confirmed that the segment of the corridor passing through Azerbaijan is proceeding without issues, following discussions with Azerbaijani President Ilham Aliyev. This multi-modal route, spanning 7,200 km, aims to connect India, Iran, Azerbaijan, Russia, Central Asia, and Europe, offering a shorter and more cost-effective alternative to traditional Suez Canal routes.
Earlier, in August, Russian Deputy Prime Minister Marat Khusnullin had also suggested exploring a direct rail link to the Indian Ocean, mentioning routes through Turkmenistan, Iran, Afghanistan, and Pakistan, to reduce transit risks associated with the Bosphorus and Strait of Hormuz.
Hormuz Fears Drive Diversification
The urgency for alternative trade routes has intensified due to recent disruptions in the Strait of Hormuz. The source article mentions joint military strikes against Iran and subsequent retaliatory actions, leading to Tehran's announcement of a maritime blockade against vessels linked to the US, Israel, and allied nations. The Strait of Hormuz is a critical global energy chokepoint, handling approximately 25 percent of the world's oil trade and nearly 20 percent of liquefied natural gas shipments.
Putin Praises Modi's Stance on Ukraine
Beyond economic cooperation, President Putin also took the opportunity to commend Indian Prime Minister Narendra Modi's consistent efforts to find a peaceful resolution to the conflict in Ukraine. Putin stated that despite the "very good and even friendly relations" between their nations, Modi "constantly raises the question and asks the question about putting an end to the conflict." He acknowledged Modi's neutral position and his "avid interest and very good ideas aimed at finding mutually acceptable solutions," expressing gratitude for India's push for dialogue and peaceful means.