December 2025 Current Affairs – India & Global News Monthly Roundup

🇮🇳 India — Politics, Diplomacy & Defence

1. Vladimir Putin visits India — Russian President Putin arrived in New Delhi on 4–5 December 2025 for the 23rd India‑Russia Annual Summit, marking his first visit since the Ukraine war began. AP News+1
2. RELOS Agreement ratified by Russia — Ahead of the visit, Russia’s parliament (State Duma) ratified the “Reciprocal Exchange of Logistic Support” pact with India. The agreement facilitates mutual logistical support for military forces, warships, and aircraft — strengthening defence cooperation, joint exercises, disaster‑relief coordination, etc. The Economic Times+2mint+2
3. India–Russia strategic cooperation expands — During the visit, besides defence cooperation, talks cover trade, energy, civil nuclear collaboration, space cooperation and labour mobility. India aims to narrow the trade gap with Russia, and both sides are expected to sign multiple MoUs. The New Indian Express+2AP News+2
4. Financial‐sector moves: Russian banks seek Indian presence — Amid the renewed India‑Russia push, Russian lenders Gazprombank and Alfa Bank have applied for regulatory approval to open branches in India — potentially boosting trade, investment, and rupee‑rouble settlement mechanisms. Reuters

Economy, Trade & Energy

1. Shift in Russian oil imports by India — Facing increased Western sanctions, including on major Russian oil firms, India is cutting back direct Russian crude imports. December 2025 is expected to see the lowest level of direct Russian oil imports in at least three years. Reuters+2Business Recorder+2
2. Privately‑held refiner halts Russian crude purchases — Reliance Industries (Jamnagar SEZ refinery) has announced it will stop importing Russian crude starting December 1, 2025, citing compliance with U.S. and EU sanctions. Financial Times+1
3. New excise bill raises taxes on “sin goods” — Parliament passed the Central Excise (Amendment) Bill 2025, overhauling excise duties on tobacco, pan masala and other sin‑luxury items. Cigarette taxes will be significantly increased under value-based levy — a move aimed at reducing tobacco consumption and compensating for revenue losses after GST‑cess phase-out. Reuters+1
4. India continues strategic autonomy amid global pressure — Despite U.S. and EU sanctions on Russia and tariffs imposed on Indian exports, India appears to maintain a balancing act: limiting some Russian imports (e.g. oil) while deepening defence and diplomatic cooperation with Russia. The Financial Express+2The New Indian Express+2

International Affairs & Geopolitics

1. Western sanctions escalate on Russia — The United Kingdom Government imposed new sanctions on Russia (especially targeting its military‑intelligence arm) after the release of a public inquiry into the 2018 Novichok poisoning case. The sanctions coincide with Russia’s diplomatic push elsewhere, including India. Reuters+1
2. Global energy markets & supply chains under strain — Russia’s shrinking oil revenue due to sanctions is causing ripple effects internationally. Nations dependent on Russian energy (directly or indirectly) are now evaluating alternatives, affecting global crude flows. The Economic Times+1
3. Realignment in Russia‑India financial and trade relations — Post‑visit, Russian banks are looking to deepen trade with India, including import of Indian goods and increased labour migration — partly to offset reduced oil revenues for Russia. Reuters+1

Governance & Social Policy Developments

1. Tobacco & sin goods pricing to increase — As part of the new excise law, cigarette and other sin-good taxes have been hiked sharply — a public‑health oriented move that also responds to fiscal policy needs ahead of GST‑cess changes. Reuters+1
2. India strengthens role in global governance — As earlier this month, India was re‑elected to the International Maritime Organization (IMO) Council Category B with highest vote tally — reinforcing its maritime influence. adda247+1
3. Push for clean energy, nuclear collaboration with Russia — Under the broader cooperation framework, talks include setting up small modular nuclear reactors (SMRs) of Russian design in India — a part of India’s energy diversification and clean‑energy goals. Business Standard+1

What to Watch This Month & Immediate Implications

1. Outcomes of India–Russia Summit (4–5 Dec 2025) — With defense, energy, trade, nuclear, and migration on agenda, the summit could set the tone for next 2–3 years of bilateral cooperation.
2. Global oil supply re‑shaping — As Indian refiners reduce Russian crude imports, demand might shift to Middle-Eastern, American or African crude — impacting global price dynamics.
3. Public health & sin‑goods policy impact — The new excise law may lead to price hikes for cigarettes and pan‑masala — affecting consumption patterns and raising revenue for government.
4. India’s diplomatic balancing act — With rising Western pressure over Russia ties and continuing India–Russia cooperation, India’s foreign policy of strategic autonomy will be tested.