New Delhi, Dec 5 (PTI) Russian President Vladimir Putin on Friday said early signing of the preferential trade agreement between India and the Eurasian Economic Union (EAEU) will reduce barriers to facilitate the movement of goods, services and capital. India and the Eurasian Economic Union held the first round of negotiations for the free trade pact last week.

India and the five-nation grouping, the Eurasian Economic Union (EAEU), on August 20, inked the terms of reference for the agreement.

Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan are the five member countries of EAEU.

Addressing the India-Russia Business Forum, Putin said he and Prime Minister Narendra Modi have set a USD 100 billion trade target by 2030 between the two nations.

He said achieving this target requires the active efforts of business communities from both countries.

The current trade is estimated at around USD 70 billion.

Putin, who is on a two-day official visit here, said it is important for both regions to reduce barriers for facilitating the movement of goods, services and capital.

"In this regard, a strong impetus, as it seems, could be given by the rapid signing of a preferential trade agreement between India and the Eurasian Economic Union," he noted.

Putin said the Russian delegation is here not only to discuss energy issues, but also to sign contracts for the supplies of oil and gas.

"What we want is the development of our multi-faceted relations with India in various fields," he said, adding that Russian firms are ready to increase manifold purchases of goods and services from India.

Putin also emphasised that free trade is "unthinkable" without a resilient bilateral settlement and reliable payment and insurance mechanisms.

He said tangible advantages are offered by the use of national currencies in trade.

It is important to ensure uninterrupted financial transactions regardless of external development, he added.

The India-Russia cooperation, he said, should not be limited to trade alone.

"We should move on to enhance our industrial cooperation together...We are ready for broad cooperation within the field of artificial intelligence, where our countries have already advanced a lot," he said.

Earlier in the day, Putin and Modi held summit-level talks that generated global attention. PTI RR NKD CS NKD BAL BAL

India-EAEU preferential trade pact aims to cut barriers and promote settlement in national currencies for smoother trade. Negotiations for a preferential trade agreement between India and the EAEU aim to reduce barriers to the movement of goods, services and capital after the terms of reference were agreed; early signing is urged to accelerate trade expansion. The agreement's effectiveness is tied to a resilient bilateral settlement, dependable payment and insurance mechanisms, and increased use of national currencies, while complementary cooperation in energy, industry and artificial intelligence is promoted alongside tariff liberalisation.