Russia, currently engaged in conflict with Ukraine, has presented another significant offer to India. Amid the international sanctions imposed on Russia, the country has been selling oil to India at affordable prices. Now, Russia, in a move to strengthen its ties, has extended an offer to Indian companies to take over businesses abandoned by Western companies.
This proposal from Russia comes at a time when several American and European companies have ceased operations in Russia due to the ongoing war between Russia and Ukraine. With the aim of placing these abandoned businesses under Indian control, Russia hopes to leverage the upcoming St. Petersburg International Economic Forum, scheduled between June 5 and 8, 2024.
According to a report from ‘The Hindu Business Line,’ Russia is keen on offering the businesses left by American and European companies to Indian counterparts. The current economic restrictions on Russia by Western countries have created an opportunity for Indian corporations to seize these ventures. Notably, Russia aspires to quickly establish itself in the growing European economy.
As many Western companies, including American ones, have shut down their operations in Russia in support of Ukraine during the ongoing conflict, Russia is keen on transferring these abandoned businesses to Indian companies. It’s noteworthy that Chinese companies are also considering taking over these ventures.
Alexei Valkov, Deputy Director of the Roscongress Foundation and Director of SPIEF (St. Petersburg International Economic Forum), suggests that several sectors such as automotive, transportation, textiles, and light industry may attract the interest of Indian investors. Although discussing commercial interests directly may not be appropriate, the business collaboration between Russia and India in traditional sectors is currently on the rise.
Valkov further notes that the St. Petersburg International Economic Forum will provide an opportunity for mutually beneficial discussions between the involved parties. Given its geographical location spanning three continents, St. Petersburg not only offers a unique opportunity for business in Russia but also enhances prospects globally. The Russia-India Business Forum, scheduled for June 5, will kick off the discussions during the event.
