Is Russia forming a bloc with China and India? A recent meeting between Nikolai Patrushev, Secretary of Russia's Security Council, and Indian Prime Minister Narendra Modi has sparked speculation about a potential alliance. Although details of the meeting are not publicly known, it is significant as it is difficult to secure a meeting with Modi.
Russia heavily relies on trade with India and China due to extensive sanctions from the West since the Ukraine war. As a result, it has led to an 80-fold increase in Russia's trade with China in the yuan currency. Putin has expressed a long-term plan to rely on the yuan as its primary currency and has advocated for the use of the Chinese yuan for settlements between Russia and the countries of Asia, Africa, and Latin America.
India's imports from Russia have increased significantly, making Russia India's fourth-largest trade partner. Rosneft's chairman signed a deal with the Indian Oil Corporation to increase supplies, indicating that the partnership between the two countries is still surging. However, India remains suspicious of China due to border clashes and is unlikely to partner with China to build an economy independent of the dollar.
The formation of a closer alliance between Russia, China, and India faces obstacles, including India's distrust of China and Modi's efforts to boost domestic manufacturing, which has led to economic decoupling from China.
