Russian oil major Rosneft has invested $20 billion in India, the Indian commerce ministry announced on Thursday, quoting Russian President Vladimir Putin.

The significant capital injection underscores Moscow’s intent to deepen economic ties with New Delhi, particularly in energy and strategic sectors, as geopolitical dynamics continue to reshape global trade.

The investment reflects Russia’s confidence in India’s economic stability and growth potential, Putin said while addressing the Russia Calling Investment Forum in Moscow. He also emphasised Russia’s interest in expanding its manufacturing footprint in India, citing the country’s “stable conditions” for small and medium-sized enterprises.

“We believe investing in India is profitable,” Putin said, adding that Rosneft’s decision aligns with Russia’s strategy to strengthen bilateral trade with India, particularly in high-potential sectors such as energy, petrochemicals, and manufacturing.

Rosneft’s $20 billion investment builds on its 2017 acquisition of Essar Oil for $12.9 billion, which provided the Russian company access to India’s expanding fuel retail market and a refining network.

The latest investment cements Rosneft’s position in India’s energy sector, particularly as bilateral trade between the two nations reached a record $65.7 billion in 2023-24, driven largely by energy imports.

Since the onset of the Ukraine conflict, India has significantly increased its purchases of Russian oil, taking advantage of steep discounts as Western sanctions curtailed Moscow’s traditional markets. Russia has now surpassed Iraq to become India’s top oil supplier.