Jaishankar In Moscow: India, Russia To Jointly Develop Northern Sea Route

After the operationalisation of the 7,200-km-long International North-South Transport Corridor (INSTC), which has pushed up trade between the two countries, the focus is now expected to shift to developing the Northern Sea Route, running through the Arctic Ocean, disregarding the Suez Canal. 

Russia has already sought India’s participation in developing this route. “While the pace of progress from India’s side was weak, policymakers are now aggressively looking to develop this route,” a person familiar with the development told The Secretariat.

Various goods, including crude and liquefied natural gas, already pass through this route, which will facilitate faster and cost-effective movement of freight once fully developed.

"It is obvious that the expansion of trade and economic ties is also linked to forming reliable logistical corridors and creating new container services. Hence, we're targeting joint development of the Northern Sea Route and the North-South Corridor," reported Russian news agency TASS, quoting Russia's First Deputy Prime Minister Denis Manturov. 

At the other end, the INSTC, which has been in development for several years, passes through several countries, including Iran, Afghanistan, Armenia, Belarus, Bulgaria, Kazakhstan, Kyrgyzstan, and Tajikistan, among others. 

The corridor — connecting the Indian Ocean and the Persian Gulf to the Caspian Sea via Iran and onwards to Northern Europe via St Petersburg in Russia — will not only push New Delhi's trade with Moscow, but also with Europe, and Central and West Asian countries.

With trade increasing between India and Russia, as well as Central and West Asia, these alternate routes will come as a relief to the country’s exporters, who have been reeling under increased logistics strains. According to Safety4Sea, till May this year, it had received 196 applications seeking approval to navigate through this route.

FM Jaishankar’s Moscow Visit

While India’s oil imports from Russia have somewhat eased in July following the US’s imposition of over 50 per cent tariff on it as punishment for purchasing Russian oil, an Indian official indicated that this is temporary. “India will be driven by its own national interests, and not guided by anyone else,” the official said. 

Also in the offing are a host of measures to boost economic engagements between New Delhi and Moscow. Meanwhile, Foreign Minister S Jaishankar, who is currently on a three-day trip to Moscow, met Russian President Vladimir Putin and his counterpart Sergey Lavrov. 

“We reaffirmed our shared ambition to expand bilateral trade in a balanced and sustainable manner, including by increasing India’s exports to Russia,” Jaishankar said, while addressing a joint press conference with Lavrov.

At present, India is the second-largest buyer of Russian oil after China. The White House has said that the high tariff on India is effectively targeted at Moscow and is a pressure tactic to end the war in Ukraine.