Russia-India relations and economic deals

India, Russia Strike Big Energy Deals

A consortium of three Indian state-run companies, Oil India, Indian Oil Corporation (IOC) and Bharat PetroResources, has signed energy deals with Rosneft to acquire the Russian company’s most promising assets in Siberia. CEO of Rosneft Igor Sechin has made an official announcement in this regard in New Delhi, saying that the deal will decrease India’s dependence on oil and gas imports.

Earlier, Prime Minister Narendra Modi had hinted that India would cut oil imports by 10% in the next six years by purchasing foreign energy assets. The prime minister made clear that India would take advantage of low global oil prices and the slowdown in China’s overseas acquisitions.

On the basis of the deals signed between the Indian consortium and Rosneft, the biggest listed oil producer in the world (by output) will allow Oil India, Indian Oil Corporation and Bharat PetroResources to increase their stake in the Vankor oil field to nearly 50% and acquire around 30% of the Taas-Yuriakh field.

The deals will also help Rosneft in a different way. Sechin explained that it would be easier for Rosneft to pay off debts incurred in its USD 55 billion acquisition of TNK-BP in 2013. During their meeting in December, President Vladimir Putin had assured Prime Minister Modi that Moscow would deepen its Soviet-era economic ties with India. Putin said that Moscow decided to supply oil to one of the world’s fastest-growing economies in an attempt to boost bilateral ties. Modi welcomed President Putin’s decision to grant stakes to Indian oil firms.

Addressing a press conference in the Indian capital on Wednesday, Sechin said that the deals would not only help India secure Russian oil output, but also help Rosneft gain access to the huge Indian market. During his stay in India, Sechin met senior Essar Oil officials to discuss a separate deal between Rosneft and the Indian firm. Under the deal, Essar Oil will acquire a 49% stake in the 400,000 barrel-per-day Vadinar refinery in western part of India in the next three months. “We are establishing a reliable energy bridge between our countries, which will be developing the interests of both Russia and India,” Sechin told the press.

Foreign policy experts are of the opinion that Russia wants to strengthen ties with India because of the current global political landscape. The Russian economy is facing deep crisis, as it has been badly hit by Western sanctions and a plunge in global oil prices.

http://inserbia.info/today/2016/03/india-russia-strike-big-energy-deals/

Sushma Swaraj will attend the annual foreign ministers’ meeting of Russia, India and China

Moscow: External affairs minister Sushma Swaraj arrived Moscow on Monday for the second leg of her two-nation visit, during which she will attend the annual foreign ministers’ meeting of Russia, India and China.

“Namaste Moscow! EAM @SushmaSwaraj arrives in Russia to attend RIC Foreign Ministers Conference tomorrow,” ministry of external affairs spokesperson Vikas Swarup tweeted.

Swaraj’s two-day visit will see her attend the annual foreign ministers’ meeting of RIC (Russia, India and China).

Besides attending the RIC meeting, she is also expected to have a bilateral meet with her Russian counterpart Sergey Lavrov in Moscow.

On the sidelines of RIC, Swaraj is expected to meet her Chinese counterpart Wang Yi during which she is likely to raise the issue of China blocking India’s bid at the United Nations to ban Jaish-e-Mohammad (JeM) chief Masood Azhar.

In Iran, she had a wide rage of engagements with several top Iranian leaders, including president Hassan Rouhani.

Rouhani has assured Swaraj that Iran can be a ‘reliable partner’ for India’s energy needs. Enhancing energy cooperation was the centerpiece of her visit to the powerful Persian Gulf nation. PTI

http://www.livemint.com/Politics/Lax1VEjRdWNhF14xUjXHXK/Sushma-Swaraj-arrives-in-Russia-on-twoday-visit.html?utm_source=hindustantimes&utm_medium=referral&utm_campaign=ht_livemint

MOSCOW (Sputnik) – Russia and India have agreed to hold the Indra-2016 joint military exercises and will decide on their dates in May, the head of the Russian Defense Ministry’s Eastern Military District’s press service said Thursday.

“A joint protocol was signed in Vladivostok on the first planned conference of the Indra-2016 joint exercises,” Capt. 1st Rank Roman Martov said.
He said consultations would be held in May in India where the dates of the exercises would be specified.

“This year troops from the Eastern Military District plan to participate in three large exercises with the Indian Armed Forces, which include the Indra-Neva-2016 with the Pacific Fleet, AviaIndra-2016 with the participation of the Air Force and air defense systems, and Indra-2016,” Martov added.


Read more: http://sputniknews.com/military/20160428/1038749297/russia-india-drills.html#ixzz478ITnsMZ

New Delhi: India is in discussions with Russia on the costing for construction of Units 5 and 6 of the Kudankulam Nuclear Power Project (KNPP) to be built by Russia`s atomic power corporation Rosatom, parliament was told on Thursday.

"Regarding the cost of Units 5 and 6, discussions are in progress on the techno-commercial offer submitted by the Russian side. The cost will emerge on conclusion of the discussions," Minister of State for Atomic Energy Jitendra Singh said in a written reply in the Rajya Sabha.

"Discussions on the draft general framework agreement for setting up KNPP Units 5 and 6 are currently in progress," he said.

The Indian government gave in-principle approval for setting up Units 5 and 6 at Kudankulam in October 2009. An inter-governmental agreement between India and Russia was signed in December 2008 for setting up Units 3 to 6.

The ground-breaking ceremony for construction of Units 3 and 4 was performed in mid-February.

The new director general of Rosatom (South Asia) based in Mumbai, Evgeni Griva, told IANS during a visit here recently that the contract for delivering equipment for Units 3 and 4 had been signed and initial permits obtained.

"On September 7, 2015, Atomenergomash Holding, the power plant division of Rosatom, signed the comprehensive delivery contract for reactor equipment for power Units 3 and 4," Griva said.

"The permit for excavation works and foundation pit preparation has now been obtained from the Indian regulatory body," he said.

"The first and most important contract has also been signed -- the delivery contract of long-lead equipment and priority delivery equipment from the Russian Federation. Besides, the top priority design is practically completed," he added.

Start of work on Units 3 and 4 was delayed due to concerns among foreign nuclear plant suppliers about India`s nuclear damage liability law. They were reluctant to sell to India, citing the provisions of the Civil Liability for Nuclear Damage Act (CLND) 2010, that provides the right of recourse by Indian operator NPCIL against the vendors for compensation in case of an accident.

The Indian government last year launched an insurance pool of Rs.1,500 crore ($220 million) to be managed by national reinsurer GIC Re.

http://zeenews.india.com/news/india/india-russia-discussing-cost-of-kudankulam-units-56_1882466.html

At the recent meeting in New Delhi of senior officials from countries in the ‘Heart of Asia’ or Istanbul process, there was broad alignment in the views of Russia, India and Afghanistan on the way ahead in violence-ravaged Afghanistan. However, Russia and India differ on the uses of the Taliban in Afghanistan.

The situation in Afghanistan is deteriorating, with rising levels of violence marring prospects of peace returning to that country any time soon. The meeting of senior officials from countries in the ‘Heart of Asia’ or Istanbul process on Afghanistan, held in New Delhi on April 26, was significant, coinciding as it did with Afghan President Ashraf Ghani’s repudiation of the idea of engaging with Pakistan to curb the onslaught of the Taliban.

The ‘Heart of Asia’ or Istanbul Process was established in 2011 to provide a platform to encourage regional collaboration to tackle the issues facing Afghanistan, the ‘heart’ of Asia. A group of 14 countries other than Afghanistan, which form the core regional partnership, discuss regional issues, particularly encouraging security, political, and economic cooperation among Afghanistan and its neighbours. This region-led dialogue aims to expand practical coordination between Afghanistan and its neighbours and regional partners to face urgent common threats, particularly counter-terrorism, counter-narcotics, poverty, and extremism.

HoA Consultations

Other than the delegation from Afghanistan, headed by Deputy Foreign Minister Hekmat Karzai, delegations from the 14 other member countries, Azerbaijan, China, India, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Saudi Arabia, Tajikistan, Turkey, Turkmenistan, the United Arab Emirates and Uzbekistan attended the meeting in New Delhi. Also in attendance were representatives of 15 other supporting countries, including the US, and 11 supporting organisations, including the UN, NATO, SCO and OSCE.

пустым не оставлять!!
Secret meeting brings Taliban to China
After the closed door meeting, a source in the Indian government said, “It was a consultative meeting, the first this year, to discuss priorities and agenda in 2016 leading up to the Ministerial to be hosted by India in December 2016.”

As Co-Chair with Afghanistan, India “put forward certain suggestions to enhance regional cooperation within Heart of Asia (HoA) to enhance stability, security and prosperity in Afghanistan and in the region”, an official source said.

These include six HoA Confidence Building Measures (CBMs) and “augmenting regional connectivity”. Also, there was consensus on condemning the April 19 terrorist attack in Kabul which killed and maimed mover 400 people.

Over 40 participating countries and supporting countries and organisations agreed to continue to contribute to ongoing political, security and economic transformations in Afghanistan.

The April meeting focused on promoting further dialogue and cooperation and produced a declaration in support of Afghanistan’s development. Diplomats and officials spoke of enhancing regional efforts in counter-terrorism and counter-narcotics trafficking, trade promotion, and even the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline, and the expansion of the transit corridors under the Asian Development Bank’s Central Asia Regional Economic Corridor (CAREC) Program.

Combating Terrorism


The most serious discussion, the source said, was the issue of combating the spread of Islamic State (IS) terrorists towards the region and checking the Taliban. Mechanisms to improve the quality of intelligence sharing were discussed.

Russian diplomat Albert Khorev, who heads the Afghanistan department in the Russian Ministry of Foreign Affairs, provided several concrete suggestions on improved coordination during the HoA meeting, an official source told RIR.

Analysts, observers and officials opine that without major commitments and sustained support from regional neighbours like Iran, Russia, China and India particularly, it is difficult for the Afghan government to endure; economically, politically, or militarily; with the war against a resurgent Taliban at its current pitch and Afghan politics so fractured.

Afghanistan’s neighbours in the region realise this, which is why countries like Iran and Russia have deepened their engagement with the insurgency. Iran has sheltered key Taliban factions in Mashhad, while Russia is increasing its diplomatic contacts with some elements of the Taliban in a bid to counter IS moves toward and gains in Central Asia.

Zamir Kabulov, Russia’s special envoy to Afghanistan, recently acknowledged that “we and the Taliban have channels for exchanging information”. “The Taliban interest,” he said while speaking to Interfax, “objectively coincides with ours.” He was referring to the IS, which is increasingly rivalling the Taliban in eastern parts of Afghanistan. No country wants to see a Taliban takeover.

India, a former senior official said, is stuck in a quandary and is unable to determine its way forward. Among its “red lines” is a refusal to differentiate between “good” Taliban and “bad” Taliban, hence it cannot engage with the insurgent group, certainly not officially.

Resolving Afghan crisis


Shashank Joshi, a Senior Research Fellow of the Royal United Services Institute, London, wrote in an opinion piece in the Hindu newspaper earlier this week that there have been various attempts at various forums to try and restore peace and stability to Afghanistan. Most recently, as violence raged, a Quadrilateral Coordination Group (QCG) of the U.S., China, Pakistan and Afghanistan was convened in January 2016 and met four times over the following month. This diplomatic initiative too has proved ineffective, and India has sought expansion of the quadrilateral to include three more members, Russia, Iran and India.


In his piece, Joshi wrote that the QCG’s efforts to engage the Taliban collapsed when news of their leader Mullah Omar’s death was confirmed by Pakistani authorities. The Pakistan establishment’s “levers” to “pressurise and control” the Taliban have proved increasingly ineffective as incidents of violence escalated, with the Taliban even retaking control of Kunduz town last September and horrific incidents of violence in Kabul, Helmand and Kandahar. Between January and March 2016, civilian deaths rose by 13 per cent compared to the same period in the previous year, while the number of “complex and suicide attacks” rose by over a quarter. As a result of this Pakistani recalcitrance, Afghan President Ghani called off his 18-month-long engagement with Pakistan after the April 19 attack in Kabul.

“The result may be a short-term boost in India-Afghanistan ties, but longer-term trends are bleak. No one,” Joshi wrote, “is fully committed to Afghanistan’s dysfunctional government. Beijing is unwilling to use its leverage over Pakistan, Washington is distracted, while Moscow and Tehran are hedging their bets. The idea of a regional concert of powers to resolve the conflict”, he said, “is implausible today.”

The HoA Process provides a new agenda for regional cooperation by placing Afghanistan at its centre and engaging countries of the region in sincere and result‐oriented cooperation for a peaceful and stable Afghanistan, as well as a secure and prosperous region as a whole.

https://in.rbth.com/economics/cooperation/2016/05/06/india-russia-working-to-resolve-afghan-crisis_590875

https://rbth.com/international/2016/05/24/pakistan-cannot-influence-russias-strategic-partnership-with-india-exper_596865

After decades of frosty ties, Russia has finally begun to reach out to Pakistan. Economic, political and even defense ties are growing between the two countries that were on opposing camps during the Cold War.

The international media has been rife with speculation that Moscow is using its ties with Islamabad as a bargaining tool with its long-standing ally New Delhi.

In this interview with RBTH, Petr Topychankov, South Asia expert and Associate in the Carnegie Moscow Center’s Nonproliferation Program, tries to dispel the myths surrounding Moscow’s recent outreach to Islamabad.

RBTH: Articles published recently by international publications speculate that Russia-Pakistan relations are on the rise, because Moscow wants to use this as a tool in negotiations with New Delhi. Is there any truth in this?

Petr Topychkanov: Russia’s relations with Pakistan are rising, first of all, on the political level. It means that the number of contacts is rising and political relations are much more active than say 15 years ago. There are some significant events in this field. For example, Russia’s full support of Pakistan's membership of the Shanghai Cooperation Organization (SCO).

As for defense cooperation, there are some developments as well. The countries signed an agreement on military technical cooperation in 2014. There have not been any arms purchases yet, but talks on four transport helicopters are mostly finished. Then, there were small-scale drills, and this year there will be joint drills in the mountains.
The Russian-Pakistani Consultative Group on Strategic Stability is actively working. These meetings are attended by high-level officials from the foreign and defense ministries of both countries.

Other than that, there are also some developments in economic cooperation. A Rostech subsidiary has begun constructing a local gas pipeline. Despite the project not being that big, I can call it a big success when compared to the past.

Then, Pakistan helped Russia to ensure its food security, when after a self-imposed food embargo against Western countries, Russia needed to find to food suppliers. Pakistan started supplying Russia with agricultural products.

RBTH: You mentioned political, defense and economic ties. Why is there a shift in Russian policies in South Asia?

I totally disagree with the idea, highlighted in a recent article on The Diplomat. The article suggests that the rise of Russia-Pakistan relations is linked to some problems existing between Russia and India. This is a very simplistic logic. It suggests that India looks for partners in the West, and in response Russia switches to Pakistan. This is not true. If people in the Russian establishment shared this kind of logic, Russia's policies in the region would have been very dangerous and most certainly doomed to failure.

I would put it in a different way. The underdeveloped relations with Pakistan, as I see it, are a legacy of the Cold War, when Pakistan was an ally of the U.S. In the 1970s and 80s, it supported the military opposition in Afghanistan, which was fighting against Soviet troops who were legally in the country. This situation didn't lead to a conflict between Pakistan and the USSR, but caused a deep distrust between them. But the war is over and Pakistan is no longer an American ally, although there were statements from both sides that Pakistan is a major non-NATO ally in the War on Terror. Such statements are not accurate.

Americans did give some aid to Pakistan in recent years, but these amounts didn't make Pakistan dependent on Washington. Pakistan has other close friends, and China is one of them.

From this point of view, Russia's slight approach to Pakistan looks logical. Russia and Pakistan have common interests in economy and security. Russia also wants to work with different partners in the region and not be stuck with just one partner. Russia is finally getting a balanced approach towards the region and seems to be elaborating a strategic approach to South Asia. This is logical.

Doesn’t this in any way affect Russia’s ties with India?

Pakistan cannot replace or even influence Russia’s strategic partnership with India. This is just impossible. Russia's priorities are very clear. I think that no matter how long New Delhi will enjoy its ‘honeymoon’ in relations with Washington, both India and Russia understand that their ties cannot be influenced by any third parties.

India will always play a very special role in Russia's foreign policy and Russia is very much interested in keeping the strategic level of its ties with India

This first of all concerns military cooperation: building of India's aircraft carriers, submarines and aircraft, and developing its non-nuclear cruise missle BrahMos.

Then there is atomic energy. Despite all existing dialogues between India and the U.S. and France, the only successful foreign-built nuclear power project in India was constructed by Russia.

That said, India will always play a very special role in Russia's foreign policy and Russia is very much interested in keeping the strategic level of its ties with India.

But many Indian analysts say that growing ties between Moscow and Islamabad are caused by a decline in the former’s ties with New Delhi…

I see no evidence, that Moscow links growing Russia-Pakistan ties with any possible cloud over Russia-India relations. This is something some analysts may want to happen, but I see no evidence. I would say that Russian officials made some attempts to state that India and Pakistan are two independent entities in Russian foreign policy. This was explained, although not very clearly, by Sergei Narishkin in his interview to TASS.

RBTH: It is very easy to add fuel to the fire when it concerns India-Pakistan relations. Many in India will suspect the worst even if you say Russia's relations with Pakistan are now natural and not linked to any problems in Russia-India relations. How should Moscow behave to show both sides that there is nothing to be concerned about?

First of all, Russia should clearly voice its strategy in the region. This strategy should be crystal clear and officially announced. This has not been done. People responsible for Russia's policies towards India and Pakistan belong to different departments and it's clear that they do not always communicate with each other, or coordinate their actions.

Second, Russia's strategy in both countries should be clear not only to politicians and governments, but also to the media and public. It means, that when Russia is planning to sign a military cooperation agreement with Pakistan, it should announce and discuss it in India and explain the reasons behind the decision. And it needs to do the very same thing with Pakistan, when it plans to sell India the S-400 air defense complex, because this is a matter of concern for Pakistan.

From the point of view of regional security, all three sides want peace and stability in South Asia.

These are very basic, but effective recommendations. Even so, they were not followed by Moscow. In 2014, when Sergey Chemesov, head of Rostech, announced the end of an arms embargo on Pakistan, this was a big and unpleasant surprise for India. The information was not accurate, because there was no embargo in the first place. There were only internal recommendations within Russian authorities, concerning a list of countries where it might not be suitable to sell arms. More than that, the Indian public was not ready for such news.
I think the actions and words of all of Russia's decision-makers in the region should be coordinated and not be harmful.

RBTH: Will Pakistan and India join the SCO? And do you think it will be a positive step?

They will join the SCO, as the decision has already been taken and the finalization only needs time and readiness from India and Pakistan. Of course, India or Pakistan can decide to not join, but I hardly believe either of them would. All formal procedures have already begun.

SCO will not try to help India and Pakistan find a solution to the Kashmir problem. SCO is not going to push India and Pakistan towards a solution of their nuclear disputes. This is not a matter of SCO.

SCO gives them an international forum to express their positions on international issues and security issues in the region. SCO will also provide them a forum for bilateral discussions, without any interference from third parties. SCO will help build relations between their military forces and intelligence.

One of the most successful things that SCO has been doing is defense and anti-terrorism cooperation between members. SCO will also help them to start taking part in joint military drills. All this is very positive both for the region and for Russia's strategy in the region.

sepheronx wrote:Like how India sits on two seats and acts like a cheap prostitute, Russia does not and will not need to communicate nor negotiate with India over Pakistan sales. India is playing a stupid game and will see itself isolated in the region. Russia doesn't have to comfort India or make it feel like a special snow flake. Fact of India moving closer to West is its decision and Russia's increase in cooperation with China and Pakistan will be the growing consequences of India's actions. Simple as that. India can't have the whole pie to itself, regardless what the corrupt and greedy Indians think.

I'm shocked how almost no one talked about India's biggest betrayal against Russia, that aerospace deal they just cut with Ukraine...despite their poor service record (see Croatia about that)...the betrayal was so bad it's nearly unspeakable!

magnumcromagnon wrote:

sepheronx wrote:Like how India sits on two seats and acts like a cheap prostitute, Russia does not and will not need to communicate nor negotiate with India over Pakistan sales. India is playing a stupid game and will see itself isolated in the region. Russia doesn't have to comfort India or make it feel like a special snow flake. Fact of India moving closer to West is its decision and Russia's increase in cooperation with China and Pakistan will be the growing consequences of India's actions. Simple as that. India can't have the whole pie to itself, regardless what the corrupt and greedy Indians think.

I'm shocked how almost no one talked about India's biggest betrayal against Russia, that aerospace deal they just cut with Ukraine...despite their poor service record (see Croatia about that)...the betrayal was so bad it's nearly unspeakable!

They betrayed only themselfs and send a strong message to other BRICS and military reliant partners to see where the gaps are in the days of war to come. Now they have to figure out how to close those gaps and they will see now that China and Russia have to compensate this hole all by themselfs. Regardless of how sinophobic or sceptic people of China are, they have learned who their enemy is and are working together and will continue to work with russia together untill US hegemony crumbles to none existence. 2052.

Its cheap these days in Ukraine to buy anything - I bet everybody is buying. I would say nothing big as India will learn what it means to do bussines with nazi as my country did

and nazi will in the proces earn another lawsuit about which everybody will know. Its basically win win situation for reliable weapon maker like Russia.

Werewolf wrote:...until US hegemony crumbles to none existence. 2052.

Werewolf that is a terribly pessimistic prediction there, given the US current economic trajectory it'll all be over in the next decade. Or maybe I'm being an optimist.

Werewolf wrote:

magnumcromagnon wrote:

sepheronx wrote:Like how India sits on two seats and acts like a cheap prostitute, Russia does not and will not need to communicate nor negotiate with India over Pakistan sales. India is playing a stupid game and will see itself isolated in the region. Russia doesn't have to comfort India or make it feel like a special snow flake. Fact of India moving closer to West is its decision and Russia's increase in cooperation with China and Pakistan will be the growing consequences of India's actions. Simple as that. India can't have the whole pie to itself, regardless what the corrupt and greedy Indians think.

I'm shocked how almost no one talked about India's biggest betrayal against Russia, that aerospace deal they just cut with Ukraine...despite their poor service record (see Croatia about that)...the betrayal was so bad it's nearly unspeakable!

They betrayed only themselfs and send a strong message to other BRICS and military reliant partners to see where the gaps are in the days of war to come. Now they have to figure out how to close those gaps and they will see now that China and Russia have to compensate this hole all by themselfs. Regardless of how sinophobic or sceptic people of China are, they have learned who their enemy is and are working together and will continue to work with russia together untill US hegemony crumbles to none existence. 2052.

Backstabbing the Multipolar World: India’s Prime Minister Narendra Modi Treads the Path of Sultan Erdogan

magnumcromagnon wrote:Backstabbing the Multipolar World: India’s Prime Minister Narendra Modi Treads the Path of Sultan Erdogan

Damn man, has the situation in India really gotten that bad, this article feels so overkill?

Countries don't have friends, they have interests.

Acres of newsprint are regularly expended on the trajectory of India-US relations and on the ups and downs of our interaction with China. Not much is written about the other big power which has had a long-standing presence in our region. India and Russia continue to be engaged in an intensive relationship, but this often does not get reflected in the public discourse.

Our political dialogue with Russia remains robust, with annual Summits and Ministerial-level joint commissions to oversee civilian and defence cooperation. About 60% of our defence equipment is of Soviet/Russian origin. It gets constantly upgraded, newer generations are introduced, higher-technology equipment is inducted and new systems are developed through joint research. The aircraft carrier INS Vikramaditya, the nuclear-powered submarine INS Chakra and the Brahmos Cruise Missile showcase the scale and sophistication of the collaboration. In December 2015, an India-Russia joint venture agreement was signed to manufacture Russian Kamov helicopters in India – the first Make in India project in the defence sector.

Russia is the only foreign country involved in India’s nuclear power industry. While corporates of other countries continue to agonize about the implications of our CLND Act, Russia’s Rosatom has pressed ahead. An ambitious programme for 12 nuclear power generation units is under implementation, aiming to deliver over 13000 MW by 2025.

Over recent months, with Russian hydrocarbons industry facing financing challenges, ONGC Videsh, Indian Oil and Oil India have been offered (and have taken) stakes in some exciting fields in Eastern Siberia, involving investment of about US$ 5 billion.

Russia is the world’s largest exporter of rough diamonds; India is the largest processor. Over 80% of the rough diamonds from Russia comes to India through third countries. An initiative is underway to streamline our tax rules and customs procedures to facilitate direct diamond trade. The benefits of the estimated potential trade of about US $ 2 billion annually would extend beyond our diamond industry to downstream service industries.

There are other ongoing joint projects in industrial technology transfers, investment in Russian natural resources, education, S&T, tourism and other sectors – too numerous to detail here.

An old friendship rarely generates new excitement. This partially explains why the India-Russia engagement remains largely unnoticed. However, it is also true that the expansion of India’s international linkages has created a public impression that Russia’s importance in India’s world view has diminished. It has been argued that we are not as dependent today on Russian support as in the past. The belief in some media and corporate circles (and perhaps also in some political circles) is that today’s Russia, boxed in by the West and locked in an ever-tightening embrace of China, cannot be a strong partner. Doomsday accounts of the Russian economy have coloured trade and investment decisions.

A brief review of Russia’s recent international engagement would help to apply a reality check to these unhelpful narratives.

Since his accession to office in 2000, the principal goal of President Putin’s domestic and foreign policy has been to restore Russia’s political influence, military strength and economic clout to a level befitting a great power. This inevitably stoked tensions in Russia-West relations, as both sides sought to expand their strategic space.

The accession or annexation (depending on your political orientation) of Crimea in March 2014 raised tensions to cold war-like levels. It triggered a spate of sanctions by USA and EU (joined by G-7 allies), aimed at isolating Russia internationally and punishing its already recession-hit economy by restricting external financing and denying sophisticated technology.

The limitations of an “isolate Russia” campaign soon became evident. Russia remained in BRICS, chairing it in 2015. Attempts to exclude it from G-20 did not get traction. More importantly, Russia’s role in the negotiation and implementation of the Iran nuclear deal could not be ignored (nearly 8.5 tons of low-enriched uranium were transferred from Iran to Russia in implementation of the deal). The military advances by pro-Russian rebels in Eastern Ukraine forced the launch of a peace process for which France and Germany engaged with Russia. Its air strikes in Syria in September 2015 secured for Russia a place at every international table where Syria’s future was being discussed. Russia continues to receive a steady stream of high-level international visitors.

The economic sanctions did increase costs of corporate projects. However, since most of the world did not subscribe to the sanctions, both finance and technology found alternative routes. After the Syrian airstrikes, constraints eased considerably as markets sensed the impending collapse of the sanctions regime.

At worst, sanctions slowed Russia’s recovery from recession. Latest IMF projections are for growth to resume in 2017. Oil prices rising steadily from sub-30 dollar levels should help. IMF reports point to strengths of the Russian economy – healthy current account surplus of 4.5% of GDP, external financial assets of 18% of GDP, adequate domestic reserves to cover government financing, low unemployment (about 6%), low external debt and undervalued corporate stocks. These are not indicators of an economy on its knees

. For all its political and economic problems, therefore, Russia remains a global force to reckon with. It is one of only five permanent members of the UN Security Council – and this number does not look like changing anytime soon. USSR used its veto to help India on Kashmir and the 1971 war. This support has cushioned us against various international pressures in the 2000s.

Freedom from the Cold War straitjacket enabled India to broaden its international engagement. This move from non-alignment to “multi-alignment” expanded our space to form multiple alliances based on shared interests and concerns. But it did not dilute existing bonds of continued relevance.

The India-Russia relationship has a mutually recognized geopolitical logic. We have common concerns and compatible objectives in our shared extended neighbourhood in West and Central Asia. Like India, Russia has had a chequered history of both cooperation and confrontation with China. Russians point out privately that even as current compulsions dictate a more intense engagement, the shadow of past strategic rivalry will always lurk in the background. Such shadows have never darkened India-Russia relations.

India’s programme of diversification of defence acquisitions is obviously in our national security interest. It is natural that the Russian defence industry expresses concern about this – no partner likes dilution of a dominant position. But the volume of our defence cooperation with Russia and its reach across the three Services will always ensure a significant volume of orders for equipment which can only be sourced from Russia because of compatibility with existing platforms, levels of technology transfers or other specific reasons.

At the same time, a valuable strategic partnership needs more than one strong pillar. The recent developments in nuclear energy and hydrocarbons sectors strengthen additional pillars. Additionally, corporate India should seize opportunities in Russia. President Putin recently personally invited our top CEO’s to Russia, offering to resolve obstacles to their business. This invitation merits a response: our banks and industry have to correct their misinformation about the Russian economy and Western sanctions.

Russia’s ambitions for political influence and strategic reach drives its “multi-vector” foreign policy. The recent surge in its relations with Pakistan, which includes a defence cooperation agreement, is part of this effort. Russia expresses apprehensions about Islamic terrorism spilling over into Russia through the porous Afghanistan-Central Asia border and believes Pakistan can help ward off this threat. The supply of Mi-35 helicopters to Pakistan has been explained in this context. Whatever the logic of this explanation or belief, there is little that India can do beyond periodic reminders about the real target of defence equipment supplied to Pakistan. We cannot claim an exclusivity of supply when we do not guarantee exclusivity of demand. In the ultimate analysis, we have to trust that a strategic partner will have the judgement not to jeopardize a significant defence engagement for relatively inconsequential commercial gains. There is no reason to believe that Russia does not understand this.

The Russian connection, therefore, may lack glamour, but delivers substance. It needs to be rescued from the unflattering narratives that one encounters in some circles.

P.S. Raghavan was secretary in the ministry of external affairs and is a former ambassador of India to Russia

http://www.asianage.com/editorial/india-strategic-crossroads-656

Americans and western paid media are hell bent on showing that all is not well between India and Russia and that western americans are going to have India as allies. India needs to tread a fine balance in its foreign policy. India is diversifying its need of weapons in some fields not because of any deliberate bias but because of need to have weapons suited in military doctrine to face possible joint China-Pak threat in future

sepheronx wrote:

Pinto wrote:Americans and western paid media are hell bent on showing that all is not well between India and Russia and that western americans are going to have India as allies. India needs to tread a fine balance in its foreign policy. India is diversifying its need of weapons in some fields not because of any deliberate bias but because of need to have weapons suited in military doctrine to face possible joint China-Pak threat  in future

There is a difference between diversifying weapons supply and then licking ass.  India just signed away a big part of its sovereignty to the very same nation that threatened to nuke you guys, called you dogs under Nixon, and placed sanctions on you guys in the 90's to force your hand due to nukes.  And then they charge you an arm and a leg for weapons that have so many strings attached and you guys take it with a smile.  Much like how you guys still deal with your former masters with open arms, hoping they can help control your oil and gas industry with its tainted BP.

India has not signed logistical deal with US as of now and its all Pro US, western media going overboard to spread lies. India- US relation is china specific. where china is hell bent on containing india by equating it with pakistan be it indian ocean, scs, banning of maulana masood azhar as terrorists as terrorists by UN, and recently India's entry into NSG. At present US-India interests converge on china there is no doubt about it

The general framework agreement between India and Russia for Units five and six of the Kudankulam Nuclear Power Plant is expected to be signed this year, said a top Russian official.

V.L. Limarenko, President of ASE Group that along with Nuclear Power Corporation of India Ltd (NPCIL) has built the Kudankulam plant, said: “The contract for Unit three and four has been concluded. We have commenced the design and manufacturing of the main equippment.” Addressing a press conference at the Atomexpo 2016 here, he said: “We have defined the configuration and negotiations are on for the final configuration of Units four and five. This year, we plan to sign a general framework agreement for these units.” The first unit of the plant is already functional, while fuel has been loaded in the second unit which is likely to start functioning by July this year.

There are four more units that now remain to be constructed. Kudankulam Nuclear Power Plant is a joint project between India and Russia in Tamil Nadu. It is the first nuclear power plant in the world where, post Fukushima, safety enhancement requirements have been implemented.

http://www.newindianexpress.com/nation/Framework-agreement-for-Kudankulam-Units-5-6-to-be-signed-this-year/2016/05/30/article3458438.ece