Prospects for the development of India's economic ties with Russia and the Eurasian Economic Union, taking into account the impact of sanctions regimes in Russia's relations with the European Union and Turkey (2014-2015)

The aim of the research is to suppose in what way the restrictions due to mutual sanctions between Russia, on the one hand, and the European Union and Turkey, on the other, can contribute to the development of Russia's economic ties with its strategic partner India. For this aim the paper, in particular, focuses on the supply of Indian food to Russia, cooperation between Russia and India in tourism, energy exports, diamond trade, culture and education. The prospect for the conclusion of an agreement on a free trade zone between India and the Eurasian Economic Union (EAEU) is analyzed as well. To write the paper official materials of Russian and Indian government agencies, as well as information materials of Russian and foreign mass media were used. The research reached the following conclusions. The supply of Indian food to Russia is a promising area of cooperation. India exports meat, fish and crustaceans, vegetables, fruits and nuts. Another promising area is tourism. More and more Russians have begun to consider countries in Asia and the Middle East as an alternative to Turkey. However, to become a magnet for Russian tourists India has to provide security for foreign female tourists. Gas supplies might also increase volumes of trade between India and Russia. The potential for energy trade between the countries is enormous. But Russia and India still need to find a feasible gas transportation route. Russia and India decided to promote the use of national currencies in bilateral trade, since both countries want to reduce their dependence on the US dollar and thereby their transaction costs. It is also important for both countries to switch to direct supplies of Russian diamonds to India. A free trade agreement (FTA) between India and the Eurasian Economic Union could promote trade between Russia and India. In 2015 and 2016 a joint research group prepared a feasibility study on a FTA between the EAEU and India. In December 2016 the EAEU Supreme Eurasian Economic Council decided to start formal negotiations with India, based on the results of the study. Russia and India also need to develop cooperation in education and culture. Prime Minister Narendra Modi's visit to Russia in 2015 led to the signing of new agreements and once again confirmed the parties' desire to deepen the strategic partnership.

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