Russian Deputy Prime Minister Rogozin, who came in June to meet the new government, is expected to spell out the economic vision for India and Russia, and ways of boosting trade, which according to an official, is “lagging behind the rest of our relations.”
With six billion dollars in bilateral trade in 2013-14, India and Russia are not expected to meet their target of $15 billion by 2015, but India wants to initiate a Free Trade Agreement with the Customs Union of Russia, Kazakhstan and Belarus.
Mr. Rogozin is not just Mr. Putin’s point person for India. He is also the Chairman of Russia’s board of the military-industrial complex, and oversees the country’s nuclear and space programmes.
Russia’s recent pivot to the east, especially in the field of energy and gas partnerships, is driven by sanctions on the Russian leadership by western countries over the Ukraine issue. Last month, Russia and China signed more than 40 agreements, including a deal to boost Russian gas exports, on the back of the mega 30-year, $400 billion deal signed between them last year.
Sources said Russia will discuss a new joint venture on the lines of the Sakhalin-1 gas fields, where India’s ONGC has a 20 per cent stake and also ground transportation and other routes for energy supplies to India. Russian company Novatek has invited Indian partners for the development and production of hydrocarbons. Mr. Rogozin’s visit may also see discussions on Russia acting as an intermediary on Indian oil imports from Iran.
According to sources the final agreement for co-development and co-production of the Fifth Generation Fighter Aircraft (FGFA) is “on track,” as differences have been sorted out.
The aircraft induction will fit in with President Putin’s plan for “import independence programme for the defence industry sector.” Other major deals under negotiation include three additional Talwar class frigates, leasing a second Akula class nuclear submarine and a trilateral agreement for development of BrahMos-M.
“If Indian state corporations, when making purchases, not only ask for the delivery of goods but also the localisation of Russian production in India, we are ready to meet them half-way,” said Minister Alexey Likhachev in an interview to Russian agency RIR last week. “We are ready to complement our proposals on the supply of vehicles, aircraft, and navigation equipment for GLONASS, with joint-venture projects in India.” While Mr. Rogozin is here, a Russian team will visit Mumbai and meet with top officials of the Department of Atomic Energy (DAE) to discuss future cooperation for Indian nuclear energy.
(With inputs from Dinakar Peri)
