Russia’s Firms Introduce Chartered Ships To India For Supply Of Necessary Goods
Russian firms have introduced regular chartered vessels to make sure that the supply of necessary goods, including crucial raw materials to China and India in backdrop of recent sanctions placed on Moscow following the war in Ukraine and the impacted supply chains.
Chartered container shipping facilities have also been introduced between India and Russia to enable a seamless transfer of essential raw materials.
Inteco, Russia’s freight shipper and Swift Transport Group, based in China have formed joint subsidiaries to facilitate container shipping activities between Vostochny in Russia and ports located in China.
China has contributed approximately $19 billion to buy Russian oil, coal, and gas in three months until May end. That is nearly double the amount from what was observed a year earlier. India ended up spending $5.1 billion during the same period, exceeding five times of the value observed a year before.
India and Russia have been in discussions regarding the revival of the Vladivostok-Chennai corridor. It would be part of the partnership in the Indo-Pacific region.
In the meantime, the first consignment via Iran has reached the Indian port from Russia after the operationalization of the International North South Transport Corridor (INSTC). Via the eastern branch of INSTC, a consignment has set sail to reach India. On 5 July, in a set of high-level discussion, India requested Iran to facilitate regular use of the 7,200-kilometre long INSTC.
At the 6th Caspian Summit in June, Vladimir Putin, Russia’s President, has reportedly mentioned that Russia is striving to expand its port infrastructure, focused on the Caspian region. They harped on building the INSTC, how it is an incredibly ambitious transport artery all the way from St Petersburg to ports based in India and Iran.
Putin has said that an agreement that took place among the Caspian littoral states regarding transport cooperation was implemented last year. It aims to turn the Caspian Sea region into a significant international logistics hub and facilitate a quicker launch of the corridor. In 2021, the cargo turnover between India and Russia rose by about 46.5%.
References: Global Times, Techno Charger, The News Online