This agreement aims to enhance maritime trade via the Caspian Sea, the largest inland body of water in the world. The signing of this deal is a testament to India’s shipbuilding capabilities and the nation’s commitment to bolstering ties with Russia.

The construction of the first four ships will commence in the 1st quarter of 2024 at a shipyard in Goa. Three kinds of ships, including chemical tankers, container ships, and bulk carriers, will be built. All 24 vessels will be handed over to Moscow before 2027, per reports.

This move comes following the European Union’s sanctions against Russia, which has prompted Moscow to redirect its trade routes towards the east. India, a growing economy with a strategic geographical location and technological capabilities, appears to be the ideal collaborator.

Also, though the Caspian Sea goes unnoticed in global shipping, it has witnessed a rise in shipping activities. Nestled between Asia and Europe and bordering Russia, Azerbaijan, Turkmenistan, Iran, and Kazakhstan, the Caspian Sea has become an important water body for Russia’s revised trade routes.