India, Russia-led EAEU Sign Agreement to Launch FTA Negotiations

India and the Eurasian Economic Union (EAEU) signed the Terms of Reference (ToR) in Moscow on August 20, 2025, to start negotiations for a Free Trade Agreement (FTA), as per the reports. The signing was carried out by Ajay Bhadoo, Additional Secretary, Department of Commerce, and Mikhail Cherekaev, Deputy Director, Trade Policy Department, Eurasian Economic Commission (EEC).

About the EAEU

The EAEU was set up on January 1, 2015. It brings together Armenia, Belarus, Kazakhstan, the Kyrgyz Republic and the Russian Federation, as per news reports. The grouping has a single market of about 183 million people and a GDP of more than $2.5 trillion.

Trade between India and the EAEU touched $69 billion in 2024, marking a 7% increase over the previous year. The bulk of this is with Russia. In 2024-25, India’s exports to Russia were $4.8 billion, while imports were $63.8 billion, largely due to oil. The combined GDP of India and the EAEU is around $6.5 trillion.

Focus Areas for Trade

According to the commerce ministry, the proposed FTA is aimed at improving market access for Indian exporters, diversifying trade into more sectors and regions, and supporting Micro, Small and Medium Enterprises (MSMEs). India is particularly looking at agriculture and engineering exports to Russia and potential energy investments.

After the signing, Bhadoo met Andrei Slepnev, Minister in charge of Trade at the EEC. Negotiation groups updated him on the progress and discussed the organisational framework for the upcoming talks. Both India and the EAEU stated their commitment to move ahead quickly and to set up a long-term structure for trade cooperation.

Read more: US Tariffs to Mostly Impact MSMEs in India's Textile, Diamond, and Chemical Sectors: Report!

Conclusion

The signing of the ToR provides a basis for formal negotiations. It is expected to open space for deeper trade engagement, greater investments, and a more defined economic partnership between India and the EAEU.

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