Russia hit by sanctions, requests India to supply spare parts - 500 products for potential delivery including parts for cars, aircraft and trains

Russia’s sanctions by the west are a ‘blessing in disguise for India as many spare parts companies across the world have declined to supply those, constricting Russian companies to keep their industries running. As a result, Russia has offered to buy more than 500 products from India thus providing a new fillip to the Indian SMEs producing spare parts for cars, aircraft and trains. Today, India’s strategic positioning has assisted in getting business opportunities from the East and the West as well without hindering its political relations. Although there are daggers drawn between the West and the East, India’s interests are not marginalized in the undeclared cold war – nevertheless, it has at best capitalized on the present situation quite effectively- imported fuel from Russia at a very discounted price and in Indian rupee.

Sanction-hit Moscow has sent India a request for supplying more than 500 products for potential delivery that included parts for cars, aircraft and trains, as sanctions have thrown Russian Industries in a quandary and their ability to keep vital industries running has been to a great extent hampered.

India is keen to boost trade in this way, as it tries to narrow down an ever-increasing trade deficit with Russia. Some companies have expressed concern, over possible falling-out of Western sanctions.

An industry source in Moscow, who has declined to be named because of the sensitivity of the issue, said Russia's Ministry of Industry and Trade asked large companies to supply lists of raw materials and equipment they needed.  Sources added that further discussion would be needed to agree on specifications and volumes and that the outreach was not limited to India, but India enjoys the priority.

Russia's Ministry of Industry and Trade and the Indian foreign and commerce ministries and the Prime Minister's office did not immediately respond to requests for comment.

Moscow’s requests were made weeks ahead of Indian Foreign Minister Jaishankar's visit to Moscow. It was not immediately clear what was conveyed by New Delhi to Russia during the visit.

PM Modi never joined the coterie of the west in criticizing Moscow

Needless to mention, Prime Minister Narendra Modi's government has not joined the coterie of western countries in openly criticizing Moscow for the war in Ukraine, besides it has enormously increased purchases of Russian oil, but with its effective geopolitical clouts have cushioned it from the impact of sanctions.

India needs to boost exports to Russia for balancing trade deficits

During the Moscow visit, Jaishankar said India needed to boost exports to Russia to balance bilateral trade that is now tilted towards Russia. He had taken various senior officials in charge of agriculture, petroleum and natural gas, ports and shipping, finance, chemicals and fertilizer, and trade - which he said showed the importance of ties with Russia.

Western sanctions have crippled supplies of some crucial products in Russia. The Airlines industry in Russia is experiencing an acute shortage of parts because almost all planes are foreign-made. Car parts are also in demand, with global automakers having stopped supply in line with the agreed sanctions.

Russia's car sales industry official remarked that the trade ministry had sent a list of car parts needed by corresponding ministries. The list of items from Russia, which includes car engine parts like pistons, oil pumps and ignition coils. There is also demand for bumpers, seatbelts and infotainment systems.

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For aircraft and helicopters, Russia requested 41 items including landing gear components, fuel systems, communication systems and fire extinguishing systems, life jackets and aviation tyres.

Raw materials to produce paper, paper bags and consumer packaging and materials and equipment to produce textiles including yarns and dyes, are also on the list of imports from India.

Russian metals producers like nickel and palladium giant Nornickel (GMKN.MM) have stated that the US sanctions coupled with self-sanctioning by some suppliers have made it difficult for industrial companies to obtain imported equipment, spare parts, materials and technologies in 2022, posing a great challenge to their development programmes. 

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Golden opportunity for Indian MSME’s to capitalize on the positive prospects

This appears to be a golden opportunity for all MSMEs in India to harness its resources and proficiency and capitalize on the positive prospects that have come as a blessing in disguise. The various small-scale and medium industries are gearing up to take advantage to the best possible extent.

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