India-Russia Ties 2025 & the RELOS Agreement

Introduction

Vladimir Putin’s visit to New Delhi in 2025 is one of the most pivotal moments in the history of India and Russia. The visit to New Delhi comes at a time of rapid change within the geopolitical landscape of the world. The visit confirms the depth to which both countries have formed a relationship that has been stable for decades.

The importance of the summit for India is about more than just agreements; it is providing India with protection of its strategic autonomy, and is ensuring that the decisions India makes in relation to foreign policy are made with India’s national interest in mind rather than at the behest of outside forces.

As a result of the meeting, a wide range of agreements have been completed, covering areas such as defence, trade and commerce, energy, health care, mobility, digital payments, and connectivity corridors to provide a complete upgrade to the India-Russia bilateral relationship. The timing of this visit is also important, as the Indian rupee has continued to depreciate against the US dollar.

Therefore expanding national currency trade with Russia allows India to mitigate its dependence on the dollar and create more economic resilience. Strengthening joint efforts in the areas of energy, fertilisers, nuclear power generation, logistics, and research and development helps to fortify the long-term economic and security needs of India.

Major Agreements Signed During the meet

1. Agreement on International Trading Using National Currencies

India and Russia have agreed to utilise the “rupee-ruble” as a medium for international trade while continuing discussions about implementing new systems allowing for the use of digital currencies.

• Both sides are working together on creating interoperability between UPI-MIR (Unified Payment Interface & Russian Mir Payment System), alternative channels of financial messaging, and establishing CBDC (Central Bank Digital Currency).
• The current trend of increasing rupee devaluation against the US dollar is creating an economically disadvantageous situation for India.
• By decreasing their dependence on the US dollar for transactions, India has increased its economic security. They have taken action to guarantee continuous payments for necessary imports of energy, defense, and food.

2. Long-Term Fertilizer Supply/Joint Ventures

Russia has committed to providing India with a stable long-term supply of fertilizers, critical for agricultural production and food security.

Both Nations discussed forming joint ventures to produce fertilizer which would reduce price oscillations and guarantee supply chains to India.

3. Agreement on Migration & Mobility

India and Russia signed a new migration/mobility Agreement, allowing the movement of skilled workers with fewer hurdles.

The Agreement allows Indian Engineers, IT Professionals, Health Care Workers, and Technical experts a more accessible pathway to employment in Russia.

It allows India to develop their domestic workforce through the transfer of technological knowledge and cooperative workforce training.

3. Health/ Food Safety and Medical Cooperation

The Indo-Russia Health Accord signifies a considerable improvement in Bilateral cooperation.

Some of the specific areas addressed in the Accord include:

• Joint management of Healthcare systems,
• Training and continuing Education for Medical personnel,
• Prevention and Control of Communicable Diseases,
• Improvement of Maternal/Child Health,
• Developing and implementing Digital Health, Telemedicine, and Artificial Intelligence driven Diagnostics,
• Establishing Methods of Regulating Medicine and Medical Devices, and
• Participating in Joint Scientific and Medical Research.

By partnering to strengthen India’s evolving Healthcare infrastructure, it will produce long-lasting innovations in medicine.

4. Connectivity/ Transportation Corridors

India and Russia have opted to grow Sanction-Free, more Efficient, and Lower-cost Infrastructure through Joint Development of Transportation Corridors and Connectivity.

• The INSTC is regarded as an important corridor connecting India to Central Asia and Europe via maritime routes.
• The Chennai to Vladivostok Corridor is Indicative of the focus on developing direct transport routes that facilitate trade.
• The Northern Sea Route is the existing maritime route primarily for goods moving from Asia to Europe, as it allows for much faster shipping.
• Thus, these corridors provide opportunities to decrease logistics expenses, circumvent sanction-based barriers, and provide more options for India to trade outside the Suez Canal.

5. Energy Security and Nuclear Collaboration

President Putin has confirmed to Prime Minister Modi that fuel supplies will not be interrupted to India.

The two countries have agreed to continue their collaborative efforts in the following areas:

• Crude oil and LNG
• Petrochemical Industries
• Nuclear Power

Russia has offered to work with India in developing Small Modular Reactors (SMRs) and Floating Nuclear Power Plants (FNPPs) that utilize state-of-the-art technologies and are designed to meet the unique energy demands of coastal regions.

The two leaders have also pledged to address and eliminate issues that could be hindering foreign investor confidence in the execution of India’s energy projects.

Note: For a broader look at global geopolitics and the historical context of evolving alliances and landscapes, check out this piece on young fold and block mountains.- Click here.

India-Russia Economic Cooperation Program for 2030

India and Russia have agreed on a long-term program for economic cooperation in the following sectors:

• Trade and logistics
• Defense and Aerospace
• Energy and Minerals
• Digital Systems
• Industrial Manufacturing

Prime Minister Modi has described the Program as India’s pole star, a constant guiding principle of India’s foreign relations for the past 80 years.

RELOS- Reciprocal Exchange of Logistics Support

What is RELOS?

RELOS is a bilateral logistics support agreement providing for the following services:

• Refueling
• Repair/Maintenance
• Port Access
• Berth Facilities
• Material or Provisions

Comparison with LEMOA, COMCASA, BECA (US Agreements)

India now has logistics and communication pacts with both the U.S. and Russia—but each serves a different strategic geography.

India and Russia signed an “RELOS” (Russia-India Logistics Agreement) to provide India with access to Russian naval and air bases in the Arctic, Pacific, and Eurasia. This will allow Indian Navy to extend its operations into these areas and increase its capability to conduct humanitarian assistance and disaster relief operations (HADR).

In addition, the RELOS agreement will support the logistics of India’s Russian defence systems (such as Su-30 MKI, MiG, and Sukhoi fighters, T-90 and T-72 tanks, S-400 surface-to-air missile systems), as well as facilitate the supply chain for Indian warships and submarines. Furthermore, RELOS will enhance India-Russia defence interoperability, reduce logistical vulnerabilities, and provide long-term strategic trust between their military forces.

Key Insight:

RELOS allows India to have dual-theatre reach into Eurasia and the Arctic, while U.S. agreements will strengthen India’s status in the Indo-Pacific region.

India’s Multi-Alignment Strategy

India is using a multi-alignment strategy and as evidenced by the RELOS, it’s clear that India does not align directly with any one bloc.

India and Russia have a long-standing relationship regarding defence; thus, India has many legacy defence assets and they are still producing some defence-related items in cooperation with Russia, and also continue to have access to Russian manufactured items through a logistics chain between these two nations.

At the same time, India is developing partnerships with the USA, Japan, Australia, and France in the Indo-Pacific region.

To maintain its strategic autonomy, India must continue diversifying its suppliers, the technologies that it acquires, and where it receives military goods from.

India is deepening its relationship with Russia without jeopardising its relationship with the USA; the combination of these two relationships places India in a very advantageous and leveraged position globally.

Economic Impacts from the Summit

1. National Currency Trade

With trade being settled in Rubles and Rupees now and also CBDC based trade settlements planned for future trades, all of these changes will do the following:

• Decrease Dependence on the USD
• Protect Against Sanctions Impact on Trade
• Reduce Banking and Transaction Fees on Cross-border Trade
• Make Oil, Defence & Fertiliser Import Payment Processes Smoother.

Importance in the Face of Rupee Depreciation

As the Rupee continues to weaken against the USD, which has resulted in increased costs for products purchased with USD, the Rupee-Ruble trade arrangement allows India to purchase much-needed products (Oil, Gas, Fertiliser) without relying on a third party currency, and at the same time reduces the amount of pressure on India’s foreign reserve trading accounts and also provides India with some protection from global currency fluctuations.

That is why India is encouraging the implementation of UPI-MIR, and other pathways to a digital currency, along with local currency invoicing.

India-Russia Trade Goal

The leaders of both countries confirmed their goal of achieving USD 100 billion in bilateral trade by 2030.

Key drivers:

• Oil & petrochemicals
• Defence and nuclear projects
• Fertilisers & agriculture
• Pharma & medical research
• Maritime and Arctic shipping routes

US Response to India-Russian ties

Why are the US so Attentive to the Developments Coming Out of the Indian-Russian Summits?

The United States observes and is concerned with:

• The Indian-Russian Joint Military Cooperation which is enabling India to increase its Military Presence throughout the Eurasia and Arctic Region where the US is limited.
• The ability of Indian-Russian Trade in Rupees and Rubles to challenge the US Dollar, as well as, the need to lessen India’s Reliance on Russian Military Weapon Systems because of the existing Western Sanctions against Russia, as well as, the increased Russian-Indian Cooperation on Nuclear and Energy Initiatives, which could have Significant Strategic Implications for the United States.

The Historical Trend of United States Response to Previously Signed Agreements between India and Russia-

In the past, after the signing of Major Agreements between India and Russia, the United States has typically Expressed:

• Concern about the Risk as it pertains to any Sanctions that may be imposed upon India (i.e., CAATSA)
• The Need to Reduce Dependence on Russian Defence Systems
• Encouragement to Align with the US Indo-Pacific Strategy
• The Need for Political Prudence in relation to any Energy Agreements with Russia
• Similar responses will likely be expected in response to the India-Russia Summit scheduled for 2025.

Why Long-Term Relationships between India and the US will Remain Strong?

Despite the aforementioned concerns regarding the US’ Continued Relationship with India, India’s Relationship with the US is set to remain Strong because of:

• Cooperative Relationship built around the QUAD membership
• Common Goals and Objectives for the Indo-Pacific Region
• Cooperation in the areas of Semiconductor Development, Artificial Intelligence, Advanced Drones, Aerospace Jet Engine Development and Supply of Critical Minerals, among others.
• Growth in Bilateral Trade Strongly Benefits Both Nations.
• Increased Dependency of the US on India for Supply Chain Diversification
• India will continue to Maintain Balance between both Regions through Multi-Alignment of Partnerships.

Significance of India-Russia ties

1. The Most Dependable Defence Relationship

For India, Russia continues to remain its most dependable Defence Partner through Russia’s

• Providing Critical Spare Parts, Maintenance & Upgrades.
• Joint development of products like BrahMos.
• RELOS Now Provides India Easy Access to Bases in the Arctic & European Continent.
• Provides Indian Armed Forces with Continuous, Interoperable Preparedness and Long Term Readiness.

2. Vital to Energy and Nuclear Security.

• Russia is an Integral Part of Indian Energy Development Long-Term.
• Larger Crude Oil Supplier.
• Development of LNG, Arctic Energy and Pipelines.
• Expansion of Nuclear Projects Under Kudankulam.
• Developments in Small Modular Reactors, Floating Nuclear Plants.
• Support Energy Diversification, Especially As West Asian Supply Is Disrupted.

3. Essential to Food and Fertiliser Security.

India Relies on Russia (and Fossil Fuels) for:

• Long Term Contracts for Fertiliser.
• Opportunities for Joint Partnerships on Fertiliser Production Facilities.
• Stable Supplies of Potash, Phosphates and Agriculture Commodities.
• Creates Price Stability & Food Security During Volatile Fertiliser Markets.

4. Provide Alternative Non-Western Routes for Connecting India to Other Countries.

Forma Non-Western Connecters for Indian Trade, Besides Traditional Routes Controlled by the West.

• INSTC (India–Iran–Russia–Central Asia–Europe)
• Chennai–Vladivostok Maritime Corridor
• Northern Sea Route (Arctic)

5. Stabilises Global Uncertainty

The current global political environment is Future of the strategic partnership between India, and Russia is represented by:

• US-China Rivalry
• Conflict in Middle East
• Volatility in Energy Markets
• Weaponisation of Global Supply Chains
• Russia provides India with a level of predictability in the strategic defence and energy sectors through the partnership between India, and Russia,
• The partnership allows for India to maintain Strategic Autonomy, and to not be overly reliant on any one bloc.

Conclusion

The 2025 India-Russia Summit is the beginning of a new era of engagement between the two countries across multiple sectors.

• RELOS extends India’s military presence into Eurasia, and the Arctic.
• Trade agreements in National Currencies reduce India’s reliance on the US Dollar.
• Long-term agreements in Energy and Nuclear Energy ensure that India’s needs for the future are met.
• Agreements in Health, Mobility, and Food Safety broaden the scope of Future cooperation between India, and Russia beyond traditional areas of cooperation.
• The Economic Cooperation Programme (2030) outlines a roadmap for the next decade.
• The Summit reinforces India’s use of a diversified, resilient, and balanced Foreign Policy.

India’s Foreign Policy Approach is reflected as follows:

• Strategic Autonomy
• Multi-Alignment
• Interest-Based Partnerships
• Balancing Russia and the USA, while placing India’s National Interest at the Centre of all actions.

FAQ’s

1. What is the RELOS Agreement between India and Russia?

RELOS is a Logistics Agreement between India and Russia, which permits the militaries of both nations to utilize each other’s Bases for refuelling, repairing, supplying, and docking. RELOS offers India access to several Russian Bases in the World.

2. By 2030, what will be the volume of bilateral trade between India and Russia?

Bilateral trade volume between India and Russia is projected to surpass US$100 billion by 2030, driven in part by increasing cooperation between both countries in several economic areas, including the energy, fertiliser, defence, transport, and national currencies.

Both countries plan to increase the use of bilateral rupee and ruble payment systems, as well as bilateral digital currency payment links. Both of these developments are expected to speed up transaction processing times between India and Russia.

3. How does trade using national currencies help India improve its position?

Trading in national currencies (rupees and rubles) reduces India’s reliance on US dollars, reduces its exposure to US sanctions, reduces its transaction costs associated with converting currencies, and provides greater stability to India’s importation process, which is especially important when the Indian rupee values will continue to decline relative to the US dollar.

4. What were some of the prominent sectors of the India-Russia relationship that were addressed in the March 2025 summit?

Defence (RELOS), Energy Security, Nuclear Cooperation, Fertiliser Supply, Healthcare, Medical Research, Mobility and Migration, and Food Safety are key areas where agreements were likely to be reached.

5. How does India balance its relationships with both the United States and Russia?

India employs a multi-alignment strategy to maintain and develop strong defence ties with Russia while simultaneously pursuing expanded Indo-Pacific cooperation with the US, including through Quad, technology partnerships, and defence interoperability agreements. This multi-alignment strategy allows India to maintain its Strategic Autonomy without being a member of any specific geopolitical bloc.