Russia has lifted restrictions on the import of milk, cheese and other dairy products from India less than a week after allowing buffalo meat from the country.

“Last week it was buffalo meat and this week it is dairy products. We are glad that Moscow has resolved the issues related to quality certification of Indian meat and dairy products speedily,” a Commerce Ministry official told BusinessLine .

This move is a result of Western sanctions on Russia over its role in the Ukraine crisis, which led to Russia not buying food items from the EU, US, Australia, Norway and Canada.

Russian President Vladimir Putin and Indian Prime Minister Narendra Modi are likely to announce a Joint Study Group for a feasibility study on a Free Trade Agreement between the two countries, which would boost trade further.

Exporters are excited about the opportunities that Russia holds as India’s exports to the country during the last fiscal year were just $2.15 billion, a small fraction of Russia’s total imports of $318 billion.

“We are in a position to export dairy items worth $400 million in the first year itself. It is likely to go up several fold subsequently,” said Ajay Sahai, Director-General and CEO of FIEO.

Amul is already exploring opportunities to enter the Russian market and is in talks with Russian company Galaktika for export of cheese and dried milk.

Processing units inspected and certified by Russia’s Ministry of Agriculture can export their products to the country.

With Russia now formally allowing import of dairy items, more such partnerships will follow.

There are hopes that restrictions on poultry products and egg powder will also be removed soon as the Russian Government has indicated its interest.

“Russia imports more than $40 billion worth of food items from Western countries, and a large chunk of that business can gradually come to India,” the Commerce Ministry official said.

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