Moscow has sent India a list of more than 500 items for potential supply, including parts for cars, planes and trains, four sources familiar with the matter told Reuters, as sanctions hurt Russia’s ability to support vital industries.

The list, published by Reuters, is provisional and it is not known how many goods will eventually be exported or in what quantities, but an Indian government source said the request was unusual in its scope.

According to the source, India is looking to increase trade in this way as it seeks to reduce its growing trade deficit with Russia. However, some companies have expressed concern about the possibility of falling under Western sanctions.

A source in the Russian industrial sector said that the Ministry of Industry and Trade in Moscow has asked large companies to provide lists of raw materials and equipment they need.

The source added that further discussions would be required to agree on specifications and scope, and that the initiative was not limited to India.

Prime Minister Narendra Modi’s government has not joined Western countries in openly criticizing Moscow over the war in Ukraine and has sharply increased purchases of Russian oil, part of the impact of sanctions on Vladimir Putin’s regime.

Russian industry is desperate because it lacks essential parts

Western sanctions have suspended the supply of essential products to Russia. Airlines are experiencing an acute shortage of spare parts, as almost all aircraft are manufactured abroad.

Auto parts are also in high demand as global automakers exit the market.

A source in the Russian car sales industry said the commerce ministry had sent a list of required auto parts to relevant government ministries and agencies in other countries, including India.

The nearly 14-page list of items sent by the Russians includes car engine parts such as pistons, oil pumps and ignition coils. There is also demand for bumpers, seat belts and infotainment systems.

For the planes and helicopters, Russia has requested 41 items, including landing gear components, fuel systems, communications and firefighting systems, life jackets and aviation tires.

The list also includes raw materials for the production of paper, paper bags and consumer packaging, as well as materials and equipment for the production of textiles, including yarn and dyes, according to a document seen by Reuters.

Russian metals producers such as nickel and palladium giant Nornicke said Western sanctions and self-restrictions by some suppliers made it difficult for industrial companies to access imported equipment, spare parts, materials and technology in 2022, putting their development programs at risk.

The list includes almost 200 names of metallurgy.

India would like to use this list to reduce the trade deficit

For decades, Russia has been the largest supplier of military equipment to India and the fourth largest market for Indian pharmaceuticals.

But given the sharp increase in purchases of Russian oil, as well as strong supplies of coal and fertilizers, India is looking for ways to restore the trade balance, an Indian government source said.

India’s imports from Russia rose nearly five-fold to $29 billion between February 24 and November 20, compared to $6 billion in the same period last year.

Exports, meanwhile, fell to $1.9 billion from $2.4 billion, the source said. India hopes to boost its exports to nearly $10 billion in the coming months with the help of Russia’s demand list, a government source said.

However, companies are too afraid of sanctions

But some Indian companies do not want to export to Russia due to fears of sanctions from the West, lack of clarity regarding payments and insurance.

“There is reluctance among exporters … especially for goods under sanctions,” said Ajay Sahai, director general of the Federation of Indian Export Organisations, a body backed by India’s commerce ministry.

Sahai, who is aware of Russia’s request, said that even small and medium-sized exporters who could meet some of the requests and had previously exported to Iran after Western sanctions were not happy.

Big Indian banks are also reluctant to process direct rupee trades with Russia months after the mechanism was put in place for fear of sanctions.

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