Russian oil major ROSNEFT has recently announced a significant investment of $20 billion in India, as reported by the Indian government citing President Vladimir Putin. This investment aims to strengthen the economic ties between Russia and India, particularly in the energy sector, amidst shifting geopolitical dynamics.

The $20 billion investment builds upon ROSNEFT's previous acquisition of Essar Oil in 2017 for $12.9 billion, which allowed it to enter India's fuel retail market. This latest move is seen as a strategic effort to enhance ROSNEFT's presence in India's growing energy landscape.

During the 15th VTB Russia Calling Investment Forum, Putin emphasized that investing in India is profitable and expressed readiness to establish manufacturing operations in the country. He noted that Russia views India as a stable environment for investment, particularly for small and medium-sized enterprises.

"We are also ready to set up our manufacturing operations in India ... We believe that investing in India is profitable," Putin said at the 15th VTB Russia Calling Investment Forum on Wednesday, according to the Indian statement.

The investment reflects a broader trend of increasing bilateral trade, which reached a record $65.7 billion in 2023-24, largely driven by India's rising imports of Russian oil. Following Western sanctions on Russia due to the Ukraine conflict, India has capitalized on discounted Russian crude, making Russia its top oil supplier, surpassing Iraq.

Both nations have set an ambitious target to increase bilateral trade to $100 billion by 2030. Indian Foreign Minister Subrahmanyam Jaishankar highlighted the need for better access to the Russian economy as part of this goal.

On Thursday, Indian Foreign Minister S Jaishankar said that India needed better access to the Russian economy.

"We are pressing the Russian leadership very strongly saying look, we are buying so many things ... we also need better access ... I think we will make progress," he said at a conference in New Delhi.

This substantial investment marks Russia's commitment to deepening its economic relationship with India, leveraging the latter's growing energy demands while navigating the complexities of current global trade conditions.