India renews ties with 'special partner' Russia

Belying predictions of diplomatic fatigue, the last visit to India by the head of a P-5 country in 2010 turned out to be one of the most significant with 30 agreements and a meeting of minds on key political issues emerging from talks here between Prime Minister Manmohan Singh and Russian President Dmitry Medvedev.

After 90 minutes of restricted talks between the two leaders and 40 minutes among the delegations, Dr. Singh emerged to tell the media that India’s relationship with Russia was ``special and privileged’’ and would develop independent of its ties with other countries.

The highlight among the 30 agreements was the consolidation and extension of strategic cooperation in the civil nuclear, hydrocarbons and space sectors.

Russia joined the U.S. and France in speaking of India and itself as “states possessing nuclear weapons” and promised to quarterback India’s bid for full membership at the Nuclear Suppliers Group and other multilateral export control clubs. Russia reiterated its support to India for a permanent seat on the UN Security Council but the formulation used was the same as in the previous two summit meetings. There was also public acknowledgement of India’s imminent membership of the Russia-China led Shanghai Cooperation Organisation (SCO).

Nuclear sector

In the civil nuclear sector, a firm agreement on setting up two more reactors at Kudankulam beyond the four already in the pipeline was postponed pending ongoing talks on the liability issue. The new Indian liability law and Russia’s insistence on a firm assurance for at least a dozen more units held up an announcement of a third nuclear park besides two existing ones at Kudankulam and Haripur in West Bengal. Nor was there an announcement on swapping the location at Haripur with another less politically contentious site, even though the Indian side is believed to have readied a new site for the Russians in Orissa.

These delays did not, however, come in the way of India and Russia agreeing to work together at the global level on nuclear energy. In the first initiative of its kind to be taken by either of them, the two countries agreed to consider cooperation in the peaceful uses of nuclear energy with third countries and said that “as supplier states, [they] support multilateral approaches to the nuclear fuel cycle at the IAEA”. Both sides also identified joint R&D in reactor technology as an area on which the two atomic energy establishments would hold detailed discussions.

First-ever collaboration

In defence, India and Russia marked the beginning of their first-ever collaboration in producing a next-generation fighter aircraft with the inking of the preliminary design contract agreement between their premier defence aero companies.

With both sides focussing greatly on improving their trade and economic ties, Moscow agreed to smoothen travel procedures for businesspersons and visitors, a long standing Indian grouse that had earlier led to an IT major CEO abandoning plans to invest in Russia. At the same time, both sides agreed to discourage unwanted or overstaying visitors and thereby avoid subsequent diplomatic wrinkles.

Corporate sector

The corporate sector was also active on the sidelines as a result of their greater involvement after the setting up of a joint CEOs forum in 2008. The agreements they signed were joint ventures in steel production, hydel power plants and telecom products.

The intention to collaborate in the hydrocarbons sector was given concrete shape with an inter-governmental agreement that will evolve into an extensive road map largely modelled on the Sino-Russia partnership in this sector. The MoU between Sistema, a telecom-petro giant with rights over two lucrative hydrocarbon fields, and ONGC Videsh progressed to a framework agreement on cooperation.

Three agreements in the space sector would give India access to the Russian satellite constellation, the Global Navigation Satellite System (GLONASS). This would widen India’s strategic options as it currently relies exclusively on the U.S.-controlled GPS system of satellites.

The two sides also gave firm shape to a partnership in the pharmaceuticals sector in which India sees a $15-16 billion opportunity with the joining of hands between private sectors of both countries for joint ventures in Russia.