Indian Prime Minister Narendra Modi and Russian President Vladimir Putin pledged to widen economic ties in the face of pressure from U.S. President Donald Trump to slam the brakes on an oil trade that surged after the Kremlin’s war on Ukraine.

In his first trip to India since Russia’s full-scale invasion of Ukraine, Putin sought to showcase the longstanding partnership between the two nations that dates back to the Cold War. Those ties have centered on defense, but both leaders are now seeking to broaden cooperation to include deeper trade, migration and economic links.

The two leaders discussed issues including expanding trade, cooperating on Arctic navigation and continuing work on civilian nuclear power. They also signed an agreement to make it easier for Indians to work in Russia.

Putin’s visit comes days after intense U.S.-led shuttle diplomacy to reach a peace deal after almost four years of conflict in Ukraine. The Kremlin has pressed demands for territory in eastern Ukraine that Russian forces have been unable to occupy since the illegal invasion. Kyiv has repeatedly rejected the demand.

India has adopted a cautious position on the war — calling for a halt to the fighting but reluctant to criticize Russia’s invasion and abstaining from United Nations votes condemning it. Modi said during a meeting with Putin on Friday that he’s held regular talks with Russia about Ukraine and has pushed for a peaceful resolution.

“I have said this earlier as well, peace is the only way to progress. We must all look for a road to peace,” Modi said.

Oil also featured in the discussions, an area that’s come under heavy scrutiny after Trump slapped 50% tariffs on Indian goods to pressure it to halt purchases of Russian energy. He followed that up by sanctioning two of Russia’s largest oil producers, forcing Indian refiners to curb purchases and seek alternate sources.

“Russia is a reliable supplier of oil, gas, coal and everything that is required for the development of India’s energy,” Putin said after his meeting with Modi. “We are ready to continue uninterrupted shipments of fuel for the fast-growing Indian economy.”

India, the world’s third-largest consumer of oil, used to source a negligible amount of crude from Russia. But as Western sanctions forced Russian oil exporters to offer deep discounts to replace the loss of European customers, Russia became India’s top supplier.

Mobility agreement

Speaking at an India-Russia business forum later Friday, Putin said the Russian delegation didn’t come to New Delhi only to discuss energy issues and sign contracts for supplies of oil and gas.

It was also there to showcase “what multi-faceted opportunities our cooperation can offer,” he said. “What we want is development of our multi-faceted relations with India in various fields.”

During the two-day visit, India and Russia finalized a mobility agreement that allows Indian professionals to relocate to Russia, a first for the two countries. They also signed an agreement for shipments of Indian marine products and agricultural goods to Russia, exports hit by Trump’s tariffs that took effect in August.

“The Russian economy needs qualified workers and they are in great demand in India itself,” said Alexey Kupriyanov, head of the Center of the Indo-Pacific Region at the state-run IMEMO institute in Moscow.

Officials are also working to finalize a deal for India to lease a $2 billion submarine from Russia, Bloomberg News reported.

The challenge for both sides is that the relationship has become too dependent on defense and energy and “the economic leg of the relationship has been very, very weak,” said Harsh Pant, professor of international relations at King’s College London.

“As of now, it is mostly on paper but if this vision can be translated to something concrete then it has the potential to shift the dynamic in the India-Russia relationship,” he said of the announced agreements.

Modi is trying to balance longstanding ties with Russia alongside its strategic partnership with the U.S., its biggest export market. Despite Trump’s criticism of India’s ties with Russia, Modi’s government remains in trade talks with the U.S., with a negotiating team from Washington expected in India next week.

India’s share of Russian imports is now less than 2%. New Delhi and Moscow intend to increase trade to $100 billion by the end of the decade.

At the business forum in New Delhi, discussions focused on boosting India’s food exports to Russia, in particular shrimp and other seafood, an industry significantly affected by U.S. tariffs. However, it wasn’t clear whether the Russian market was ready for the increased trade.

“It depends on the demand,” Sergei Dankvert, head of Rosselkhoznadzor, Russia’s agriculture agency, said in an interview in New Delhi. “If there is demand, then there will be further supplies. If there is no demand, there will be no supplies.” Everything depends on “competition in the market,” he said.

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—With assistance from Saket Sundria and Tony Halpin.

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