Indo-Russian
Pacts On Wide-Ranging Issues
It's A Matter of Synergy,
Not Just Energy
India
and Russia have been coursing
together for decades as friends
and allies. Both have shed their
stifling, socialist baggage. The
year 1991, for reasons altogether
different, shaped the destinies
of the two nations. Facing virtual
bankruptcy, India initiated far-reaching
reforms, in 1991 throwing open
its economy to the process of
globalization. The collapse of
the Soviet Union in 1991 put Russia
in the same predicament as India
had faced in the same year. Russia
too had no option but to strike
the reforms path. Reforms have
cured most economic ills of both
countries, for whom ideology is
a moss-gathering shibboleth. Today,
India and Russia talk pure business.
This new outlook got glitteringly
reflected during Russian President
Vladimir Putin's visit to India
in January 26, 2007.
Russian President Putin's arrived
in India at a time when India's
pact with the United States on
civilian nuclear energy had been
facing some rough weather. The
former KGB boss quickly grasped
the situation and promptly signed
a pact on nuclear energy with
his counterpart Prime Minister
Manmohan Singh. Under this deal,
Russia will supply nuclear reactors
and power plants to energy-hungry
India. India, which is racing
to secure new sources of fuel
to sustain its booming economy,
welcomed the Russian move. Nothing
could have made Prime Minister
Singh happier.
"We appreciate Russian support,"
Prime Minister Singh said after
the two countries signed a memorandum
of understanding in which Russia
promised four more nuclear reactors
for a flagship nuclear plant it
is building in Kudankulam in southern
Tamil Nadu - a state that already
has two 1,000-megawatt Russian
reactors. The symbolic highlight
of Putin's two-day visit culminated
in his being accorded the guest
of honour at India's Republic
Day celebrations.
Strong political ties between
India and Russia notwithstanding,
the bilateral trade between the
two countries has not grown in
proportion to their friendship,
which has been a matter of concern
for both.
This aberration found an expression
at a meeting President Putin had
with Indian business leaders in
New Delhi, where they displayed
disappointment over the slow growth
of bilateral trade and frustration
at difficulties in cracking the
Russian market.
"We have to seek an answer
to the question why, despite strong
political ties between two time-tested
friends, bilateral trade and business
ties remain low," said Habil
Khorakiwala, president of the
Federation of Indian Chambers
of Commerce and Industry (FICCI).
He said it was "time to put
words into practice and transform
the willingness into actual cooperation.
" Khorakiwala was heard in
rapt attention by President Putin
and a delegation of Russian businessmen
accompanying him.
Indian businessmen have long complained
of difficulties in receiving Russian
visas, which Russia has tied to
alleged problems with illegal
Indian immigration, Indian government
sources said.
Officially estimated Indo-Russian
bilateral trade ties had jumped
20 percent in 2006 to reach $3.8
billion but business sources put
the figure at a modest $2.75 billion.
Putin has said he hoped the countries
would triple bilateral trade to
10 billion dollars per year
by 2010.
Outside of nuclear and military
cooperation - which brought a
250-million-dollar contract for
the joint production of fighter
jet engines - India's business
elite painted a less than rosy
picture of relations
with Russia.
Putin's visit also helped materialize
an agreement between India's state-run
Oil and Natural Gas Corp and Russian
state oil giant Rosneft to jointly
bid for exploration and refining
projects in India, Russia and
other countries.
ONGC and Rosneft will build on
their existing partnership in
Russia's vast Sakhalin-1 oil and
gas field, the two companies said
in a joint statement.
The two sides also signed a 250-million-dollar
deal for a Russian-built hydroelectric
power station in northern Uttar
Pradesh, as well as a joint venture
to produce titanium products in
eastern Orissa.
President Putin and Prime Minister
Singh discussed a broad range
of issues relating to bilateral
cooperation and exchanged views
on important regional and international
issues of mutual interest and
concern. Following is the outcome
of their talks on wide-ranging
issues.
Both leaders noted with particular
interest that this visit took
place in the year when the two
sides were actively preparing
to jointly commemorate the 60th
anniversary (on April 13, 2007)
of the establishment of diplomatic
relations between India and Russia.
Both sides welcomed the signing
of the bilateral Cultural Exchange
Programme and the Protocol to
celebrate 2008 as the “Year
of Russia in India” and
2009 as the “Year of India
in Russia”.
India and Russia resolve to further
emphasize their willingness to
expand and strengthen their scientific
and other exchanges and bilateral
dialogue on peaceful uses of nuclear
energy. India and Russia note
with satisfaction their ongoing
cooperation in construction of
nuclear power plants at Kudankulam.
India and Russia reaffirm their
commitment to work together to
expand civil nuclear energy cooperation,
with a special emphasis on nuclear
power generation aimed at enabling
India to realize its goals of
promoting nuclear power and achieving
energy security in a self sustaining
manner.
With the objective to implement
these intentions, an agreement
between India and Russia were
signed on cooperation in the construction
of four additional power units
at Kudankulam.
Russia will continue to work with
the Participating Governments
of NSG in order to create conditions
through amendment to its guidelines
to facilitate expansion of civilian
nuclear energy cooperation with
India.
India and Russia recognize the
importance of R&D for development
of innovative technologies which
reduce the risk of nuclear proliferation
to further facilitate the wide
scale development of nuclear energy.
International project for nuclear
reactors and fuel cycles (INPRO)
which is being implemented under
the aegis of IAEA with the participation
of India and Russia is an example
of productive international cooperation.
India and Russia express their
willingness to further expand
and strengthen their bilateral
civilian nuclear energy cooperation
by broadbasing cooperation covering
both power (fission and fusion
energy) and non-power applications
in areas of mutual interest to
be identified by both sides.
The Department of Atomic Energy,
India and the Federal Atomic Energy
Agency, the Russian Federation
will work out in 2007 a comprehensive
programme of cooperation in the
field of peaceful uses of atomic
energy between India and Russia.
President Putin will be remembered
for having rejuvenated Russia's
relations with India after these
remained inactive during his predecessor
Boris Yeltsin's seven years.
President Putin's very first visit
to India in October 2000 gave
a new thrust and purpose to bilateral
relations. The two sides signed
a landmark Declaration on Strategic
Partnership, which turned a page
on a decade of disarray and drift
and set the stage for much closer
defence ties.
New Delhi and Moscow instituted
an inter-governmental commission
for military-technical cooperation
under the co-chair of the Defence
Ministers of both countries. President
Putin assured the Indian leadership
that Russia was willing to share
any cutting edge defence technologies
in its possession.
As Russia rebounded from the economic
crisis of the 1990s and reasserted
its global role, India-Russian
relations gained new strength
and strategic depth.
In the same way as in the 1960s
and 1970s when Russia helped India
set up core industries to achieve
economic sovereignty and provided
arms to defend its independence,
today it is helping India achieve
self-sufficiency in defence production
with the transfer of critical
weapon technologies. Over the
past seven years, the two countries
have moved beyond the Soviet-era
buyer-seller relationship to joint
development and production of
futuristic weapons such as the
Brahmos supersonic cruise missile,
the best of its kind in the world.
