Round The World

New Delhi, 23 December 2010

Medvedev’s Visit

 RUSSIA-INDIA BHAI-BHAI

By Monish Tourangbam

Research Scholar, School of International Studies (JNU)

The recently concluded Russian President Medvedev’s visit re-emphasized the progress in India-Russia strategic partnership in the ten years since it was instituted in 2000. The Annual Summit meeting reviewed the changing contours of the international scenario and deliberated on bilateral, regional and global issues where the two reliable partners can work together. 

India and Russia do not have any core clash of interest endangering its relationship. This is a significant positive point that could take the ties forward in diverse areas, beyond the more conventional defence sector. The growing business confidence in India and its economic prowess should open up many more doors in the business-to-business sector and going by the recent summit; both sides have realized the potential and are on the move.

Of late, the burgeoning ties between the US and India has captured the limelight and the successful visit of President Obama in November further cemented the growth curve in the story. New Delhi’s gesture toward Washington and vice-versa has remarkably changed since the signing of the Indo-US nuclear deal and the global recession has only increased the attractiveness of the Indian market for the US.

The kind of camaraderie that the Indian Government has begun to share with its US counter-part in recent years has definitely raised eyebrows among Russian policy makers and analysts. Of course, the nature of international politics has gone for a paradigm shift whereby a relationship with one country should not come at the expense of another.

Also, Russia and the US are no longer on each other’s throats like in the Cold War era. However an India looking to the West is definitely going to present some strategic challenges to the Russian policy framers. As such, Moscow would not like too many eggs being put in the “New Delhi-Washington basket”. Now, it depends on the Indian diplomatic circuit as to how it balances bilateral relations and at the same time, seizes on the attraction that India demands as a rising economic and political power.

One of the highlights of the India-Russia relationship is the cooperation in the field of civilian nuclear energy. This has been reiterated on subsequent visits of leaders from both sides. The synergy between Russia as a major energy producing country and India as a major energy consuming country is the catch-phrase of the cooperation in this field. The joint statement read, “They reviewed the progress that has been made for the commissioning of Units 1&2 of the Kudankulam Nuclear Power Project and the discussions for setting up additional units at Kudankulam including Units 3&4.”

A MoU was signed envisaging joint research and development in reactor technology and related fields for peaceful uses of atomic energy by nuclear research institutes on both sides. A senior official involved with the discussions said that signing of a commercial contract for Kudankulam 3 & 4 would take some more time, as pricing and liability issues needed to be sorted out. “We are hopeful of that being done at the earliest,” he said.

As expected, the Nuclear Liability Bill raises some concerns among foreign countries hoping to invest in India’s nuclear energy market. The countries wishing to do business with New Delhi have not taken strong positions against the Bill. Nevertheless, this issue has to be worked out in a graduated manner that will not hamper the vital interests of any side.

Further boosting joint ventures in the energy sector; an inter-Governmental agreement was signed between India and Russia for Enhancement of Cooperation in Oil and Gas Sector which is expected to provide an administrative framework for joint undertaking of projects in India, Russia and third countries by oil and gas companies from both countries.  

Besides the burgeoning defence trade, broader economic ties are not matching the potential. Major initiatives have been taken with a vision to close these gaps and harness potential to the optimum level, particularly to expand the business-to-business links in addition to the ones between the two Governments. Both sides agreed to continue their efforts to achieve the strategic target of bilateral trade volume of US $ 20 billion by 2015.

Recent noteworthy investment agreements include a MoU for cooperation between India’s iron-ore major NMDC and Russia’s Severstal to establish a joint venture for setting up an integrated steel plant in Karnataka. Also, an inter-Governmental agreement seeks to ease the travel procedures to increase business contacts between the two countries besides others.

Both sides reached an agreement on Integrated Long Term Programme of Cooperation in Science, Technology & Innovation to guide innovation-led R&D collaboration in the field of science & technology during 2011-2020. Also, agreeing to intensify cooperation in the space sector, the two sides appreciated the progress being made in India’s utilisation of Russia’s Global Navigation Satellite System, GLONASS. Moreover, some understandings were reached in IT and IT-enabled services and the pharmaceuticals sector.

Despite fierce competition from other countries, India and Russia have shown that the defence ties are rock solid and will continue to be so in the interest of both nations. In its 2010 Yearbook, the Center for Analysis of World Arms Trade (CAWAT) named Russia as the main arms supplier to India in 2002-2009. The CAWAT said Moscow would remain the top arms supplier to New Delhi in 2010-2013, with estimated deliveries worth $15.26 billion or 44.7% of India’s arms imports during the same period ($34.1 billion).

The joint India-Russia ‘Indra’ counter-terrorism exercise took place this October. The frequency of war-games and joint exercises has of late become a significant symbol of any defence tie-up and more such exercises should be expected. More. A preliminary Design Contract (PDC) for Fifth Generation Fighter Aircraft (FGFA) was also concluded.

When it came to the ubiquitous issue of terrorism, President Medvedev sang virtually India’s tune. He called for expeditious punishment to terrorists involved in the Mumbai terror attacks and for prompt extradition of terrorists. Commenting on the issue of safe havens in the region, he remarked, “Terrorists are criminals. They should be extradited to be punished. Those who hide terrorists conceal criminals.”

The joint statement as expected “called upon Pakistan to expeditiously bring all the perpetrators, authors and accomplices of the November 2008 Mumbai attacks to justice.'' Russia also walked the expected line in supporting India’s candidature for the permanent seat in an expanded UN Security Council.

India-Russia ties ended on a good note last year with PM Singh’s Moscow visit. It ends on a good note this year as well with the successful visit of the Russian President and the 10-year celebration of the institution of the India-Russia Strategic Partnership.

Additionally, President Medvedev’s visit completed a full circle as he was the last of the leaders of all the P-5 (permanent members of the UN Security Council) who came calling this year, thus vindicating the priority that India has acquired in the international system. Medvedev’s visit followed that of Britain’s David Cameron, the US President Barack Obama, France’s Nicolas Sarkozy and recently China’s Premier Wen Jiabao. ---INFA

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