INDIA’S POLICIES IN THE RUSSIAN-UKRAINIAN CRISIS: ASSESSING NEW TRENDS AND IMPLICATIONS

Abstract [English]

The ongoing Russian-Ukrainian crisis, which began in 2014, has had a significant impact on the economic relationship between Russia and India. This paper provides an extensive review of existing literature on the economic effects of the crisis on Russian-Indian relations. The crisis, which began with Ukraine's efforts to integrate into the EU and Russia's subsequent annexation of Crimea, led to prolonged conflict, economic sanctions, and growing diplomatic tensions between Russia and the West. The study highlights the global economic consequences of the crisis, particularly for countries with strong ties to Russia, such as India. As a major trading partner and investor in Russia, India has felt the direct consequences of the crisis. Western sanctions have severely affected the Russian economy, leading to a drop in foreign direct investment, a decline in the ruble’s value, and reduced trade with the West. Meanwhile, Ukraine has faced significant economic challenges, including losses in industry and agriculture, reduced foreign investment, and disruptions in energy supplies, which have caused inflation and a decline in purchasing power. The fallout from the crisis has extended to India, as sanctions imposed by the EU and the US on Russia hinder access to global financial markets and technology. Despite these difficulties, there remain opportunities for growth and collaboration in areas such as energy, trade diversification, defense, and infrastructure development, which could strengthen economic ties. However, the crisis presents multiple challenges and risks to Russian-Indian economic relations, such as geopolitical instability, trade barriers, currency fluctuations, regulatory issues, and energy dependency. Overcoming these obstacles will require proactive policy measures, reforms, and continued bilateral commitment. In conclusion, although the Russian-Ukrainian crisis has had significant economic consequences for Russian-Indian relations, there are still opportunities for cooperation. By addressing challenges, improving diplomatic relations, diversifying trade, reducing investment barriers, and encouraging innovation, Russia and India can strengthen their economic partnership despite the difficulties caused by the crisis.