The EAEU comprises Russia, Kazakhstan, Armenia, Belarus and Kyrgyzstan, with Cuba, Moldova and Uzbekistan holding observer status. India and the Russia-led bloc formally launched FTA negotiations on November 26, 2025, after signing the Terms of Reference (ToR) in Moscow on August 20, 2025. An Indian delegation visited Russia in June 2026 for the latest round of talks.
In April 2026, government sources told CNBC-TV18 that India had urged Russia to reduce non-tariff barriers on exports of electronics, electrical products and automobiles as part of its strategy to expand shipments to the world’s largest country by land area.India is seeking to increase exports of pharmaceuticals, chemicals, engineering goods, machinery, automotive products, agricultural produce and marine products as it looks to narrow its $59 billion trade deficit with Russia by addressing non-tariff barriers across sectors. Efforts are also underway to strengthen the rupee-rouble trade.
Crude oil accounts for around 80% of Russia’s exports to India. India’s goods exports to Russia stood at $4.88 billion in FY25, while both countries have set a target of achieving $100 billion in bilateral trade by 2030.
In December 2025, government sources indicated that India could explore a separate services agreement with Russia, as the EAEU is a customs union and its trade agreements do not cover services.
Government sources have also said India is not keen to include gold and precious metals in the proposed agreement with the EAEU. They indicated that the initial rounds of negotiations would focus on sensitivities on both sides, the frequency of discussions and the products where trade could be expanded.
While India has flagged more than 65 non-tariff barriers affecting its marine exports, sources identified four key hurdles for pharmaceutical exports to the bloc: registration procedures, clinical trials, market access and price registration.
Sources also said India is seeking to eliminate regulatory overlaps faced by exporters due to differing Russian, EAEU and European regulations. Efforts are underway to provide greater clarity on export rules, including labelling requirements in Russian on and within product packaging.
The FTA negotiations are expected to cover customs administration, e-commerce, IPR, sanitary and phytosanitary measures, tariffs and technical regulations.
On Sunday, officials in India’s Ministry of External Affairs (MEA) said the central banks of India and Russia are in talks on a local currency settlement mechanism. They also said the text of a labour mobility agreement between the two countries has been finalised, with both sides completing their respective internal processes before signing.
