Defence and energy will again be on top of the agenda as heads of Russia and India, Narendra Modi and Vladimir Putin meet end of this week.
Informed sources told BusinessLine that while there will be commercial talks between businesses of the two countries, there will be also strategic discussions, including technical tie-ups for military.
The two are likely to take forward the proposed ‘energy highway’ – pipeline network transporting hydrocarbons from Russia to Indian border – as well as strength nuclear cooperation.
Besides energy and Defence, Putin will also look for cooperation in areas such as education, infrastructure, tourism, and bilateral trade, including starting work on a Comprehensive Economic Partnership Agreement.
Political critics are seeing Putin’s visit to be followed by American President Barack Obama’s tour in January as India’s growing strength in Asia.
Putin’s visit also gathers significance as it is being interpreted as Russia’s attempts to renew its ties with old partners, including India, following sanctions by the West over the Ukraine crisis.
The External Affairs Ministry is pushing for a larger strategic role for India in the energy space.
“Energy Highway” as a concept has been earlier discussed when former Prime Minister Manmohan Singh had visited Russia. At that time both the countries had agreed to explore the possibilities of direct flowing of oil and gas from Russia to India through the land route. It was also agreed to set up a joint study group.
DK Sarraf, Chairman and Managing Director, ONGC, had earlier told BusinessLine that, “Our team is working with Rosneft to look for real opportunities in exploration…But, the more important thing that will happen is direct transportation of hydrocarbons from there to India… it could be a pipeline from Russia, Kazakhstan to India.”
Commercial talksAt the commercial level, talks have been going on between India’s ONGC Videsh Ltd and Russia’s Rosneft for 10 per cent stake in Vankor oilfields — largest field to be brought into production in Russia in last 25 years.
Russia has also offered OVL a proposal to do joint development of Yurubcheno-Tokhomskoye oilfield in eastern Siberia. An OVL official said, “we are doing due diligence. A final call will be taken.”
The President may also take up the issue of the Russian Government’s failed titanium joint venture with Kolkata-based Saraf Industries urging India to help it get back its. The two will also work towards revival of Rupee-Rouble trade and establishment of a joint study group to study the feasibility.
At present, India’s trade with Russia is $6 billion, which is less than one per cent of the country’s total foreign trade.
Recently, Russia removed restrictions on bovine meat imports from India and this is likely to be followed by more imports of farm products.
According to exporters’ body FIEO, bilateral trade could more than double to $15 billion by 2015 due to efforts being made by exporters to tap opportunities in the region. Once CEPA is in place trade would increase manifold. Agriculture products, textiles, pharmaceuticals and chemicals are some of the areas where India could have immediate gains.