'Very big potential for economic cooperation': Putin proposes new India-Russia trade routes amid Hormuz fears

Amid fresh anxiety over global shipping routes after disruptions in the Strait of Hormuz, Russian President Vladimir Putin has proposed wider trade and transport links with India, saying there is “very big potential” for economic cooperation between the two countries.

Putin said Moscow was in talks with New Delhi to jointly use new international shipping and connectivity routes, including the International North-South Transport Corridor (INSTC). Alongside the trade corridor discussion, he also praised Prime Minister Narendra Modi’s efforts to find a peaceful solution to the Ukraine conflict.

Putin pitches wider India-Russia connectivity

“There is a very big potential for economic cooperation with India, not just in logistics,” Putin said. He said Russia had already piloted commercial vessels from China and South Korea and was now discussing similar cooperation with India.

“We have piloted a Chinese container ship and South Korean ship, and we are talking to our Indian friends as well. So we stand in favour of jointly using these promising international corridors,” Putin said.

The Russian president also highlighted the International North-South Transport Corridor, a major connectivity project involving Russia, Iran and India. Putin said Moscow was ready to provide credit resources for the development of the North-South corridor. However, he said progress depended partly on Iran completing its section of the project.

“Now, as far as the North-South transport corridor is concerned, it does not depend solely on us. We stand ready to provide the credit resources. But right now, our Iranian friends have to complete their part of the work,” he said.

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Azerbaijan route remains on track

Putin also said the part of the corridor passing through Azerbaijan was progressing without problems following his discussions with Azerbaijani President Ilham Aliyev.

“Part of the corridor must go through Azerbaijan, President Aliyev, and we are in contact. There are no problems there. Azerbaijan agrees,” Putin said.

The comments underline Russia’s stated interest in developing multiple routes for international trade and connectivity with India.

Putin praises Modi’s Ukraine peace efforts

Putin said Modi had repeatedly raised the need to end the conflict despite the “very good and even friendly relations” between India and Russia.

“Prime Minister Narendra Modi is one of those world leaders who, despite our very good and even friendly relations, personal good relations, constantly raises the question and asks the question about putting an end to the conflict in Ukraine,” Putin said.

He added that Modi had been pushing for mutually acceptable solutions. “He has an avid interest and very good ideas aimed at finding mutually acceptable solutions. In that sense, naturally, the Prime Minister takes a neutral position but with an interest in the end of the conflict,” Putin said.

“I think it’s my duty to say that directly. And we are thankful to the Prime Minister for his ideas,” he added.

Putin also thanked Modi for seeking an end to the conflict through dialogue and peaceful means.

“We are thankful for his desire to put an end to this conflict through peaceful means and as soon as possible,” he said.

Russia eyes alternative route to Indian Ocean

Earlier in August, Russian Deputy Prime Minister Marat Khusnullin had said Moscow should examine the feasibility of a direct rail link to the Indian Ocean to reduce transit risks linked to the Bosphorus and Strait of Hormuz.

“A rail link to the Indian Ocean should also be explored. Risks related to the Bosphorus and the Strait of Hormuz might require alternative routes: through Turkmenistan, Iran, Afghanistan, and Pakistan. Any options providing access to India are acceptable,” Khusnullin was quoted as saying by TASS.

The discussion over alternative trade routes comes amid disruptions in the Strait of Hormuz following armed hostilities involving the US, Israel and Iran.

Why the Strait of Hormuz matters for global trade

On February 28, joint military strikes were launched against Iran, targeting key urban centres, including Tehran. Iran’s Islamic Revolutionary Guard Corps responded with missile and drone operations against Israeli positions and US military bases across Bahrain, Jordan, Iraq, Qatar, Kuwait, the UAE and Saudi Arabia.

Tehran subsequently announced a maritime blockade of the Strait of Hormuz against vessels linked to the US, Israel and allied nations involved in the operations.

The Strait of Hormuz is a key global energy chokepoint, accounting for approximately 25 per cent of global oil trade and nearly 20 per cent of worldwide liquefied natural gas shipments.