Q3. Russian-Indian relations have undergone a painful transformation in recent decade. How do you estimate the present level of our ties, compared to the golden age of the early days and turbulent, if not, painful, period of 1990s?
Ans: The 1990s were difficult years for Russia and its people and it is good that they are now left well behind. We welcome Russia's re-emergence since then as an influential player in the international system. A strong Russia contributes positively to global peace and stability. The history of our friendship is a story of unprecedented growth and development of our ties. Our special and privileged Strategic Partnership is the fruit of efforts by earlier generations to nurture our unique ties. Today, we are proud of our success in diverse spheres and look to replicating them in other areas. The rapid progress our societies in recent years has opened new vistas for cooperation that did not exist before. Our cooperation has strengthened with each year and this welcome trend will undoubtedly intensify.
Moreover, the world is witnessing a profound transformation and a shift in the global balance of power. Our relationship serves as an anchor of peace and stability during this transitional phase. Together, India and Russia can help shape global responses and changes underway offer an opportunity to bring about an international order that is democratic, inclusive, based on the supremacy of international law, and consistent with UN objectives and principles.
Q4. Some say that the 21st century killed the traditional warmth of Indo-Russia friendship, which was once called "two peoples tradition". Do you find this relevant?
Ans: Not at all! In fact it is quite an inaccurate assessment! India-Russia friendship is time-tested and has played a significant role in India's security and economic development. There is a unique political consensus in our countries, cutting across party lines, that favours ever closer ties. Moreover, the challenges that our countries face, require that we forge even tighter bonds of friendship.
A relationship between two countries ultimately rests on friendship, trust and goodwill among people, on cultural exchanges, and contacts in sectors like academia, tourism, science, and business. We will enhance opportunities for people-to-people contacts and exchanges, such as between our parliamentarians, entrepreneurs, journalists, academics, youth, artistes, and others. The underlying basis to this cooperation is the tremendous interest in India and things Indian that you will find across wide swathes of Russia. If anything, this interest has grown over time. It has certainly not diminished!
Q5. Both sides are trying to bring more substance to the formula "Privileged & Strategic Partnership" coined during President Medvedev's visit last year to New Delhi. Can you spell out the ABC of that partnership, as seen by Indian side?
Ans: Since the declaration of a Strategic Partnership in 2000, we have achieved a remarkable transformation in our bilateral ties, to which the flagship cooperation projects that we have today in sensitive areas like defence, space, atomic energy, and S&T, provide testimony.
India-Russia Annual Summits have been an occasion when our leadership discusses and plans ever more ambitious cooperation ventures. With Russia joining the WTO, accelerating its economic reforms, and upgrading its Custom Union with Belarus and Kazakhstan to a common economic space, new opportunities for bilateral trade and investment will open up. Sectors like pharmaceuticals, fertilizers, IT, telecommunication, oil & gas, steel, coal, and civil aviation offer bright prospects.
India has long passed the stage of being a country known merely for "tea and elephants". Unfortunately, out-dated mindsets and stereotypes remain. To counter these, we will encourage greater exposure to each other's latest achievements, as we take our relationship forward to a qualitatively new level.
Q6.Defence ties remain one of the pillars of our cooperation. However last year India's decision to exclude Mig-35 from the "game changing" tender as well as the recent setback of Russian-built MI-28 helicopters in another tender raised more concerns in Russia and was tough to swallow for the Russian arms manufactures. How do you view the future prospect of the Russian Military Industrial complex with respect to Indian defence tenders?
Ans: India's armed forces use large amounts of equipment and defense systems sourced from Russia. Over the last two decades the buyer-seller relationship in this sector has transformed into a dynamic cooperative relationship involving joint development and production of advanced defence weapon systems and platforms. Flag-ship projects like the Brahmos Missile, the Fifth Generation Fighter Aircraft, and the Multi-Role Transport Aircraft, are fine examples of what we can do together. These joint design and development projects provide compelling evidence that our military-technical cooperation is progressing well. We would like this mutually beneficial trend to gather further momentum.
Of course, Russian arms manufacturers face stiff competition on the Indian market from arms manufacturers of other countries. However, this is not something new. Such competition has been around for decades and despite it our bilateral defence ties with Russia have grown apace. Russian manufactures have not succeeded in a few of our recent defense acquisition programs, but this is not unusual either. At the same time, there are numerous instances when Russian companies have proved highly competitive and emerged as valued partners in meeting our defence requirements. Overall, ours is a dynamic and growing defense partnership, not a waning one.
What is more, we are completing work on a protocol for purchasing a consignment of 42 SU-30 MKI fighters. This protocol may be signed in the course of the current Russia-India high level Summit in Moscow.
Q7. In recent years, Russia-Indian trade and economic ties have been lagging behind the political cooperation. Has the situation changed? How do you estimate the level of bilateral trade and economic ties? What are the areas of potential growth?
Ans: Our present bilateral trade and investment levels are quite inadequate. They do not match the size of the Indian and Russian economies or the economic complementarities between us. Institutional mechanisms to promote greater trade and investment are in place. The Inter-Governmental Commission and business-to-business platforms like the India Russia Trade and Investment Forum and the CEO's Council are working to facilitate trade and investment.
In particular, we are exerting serious efforts to strengthen bilateral linkages in sectors such as steel, fertilizers, pharmaceuticals, coal, diamonds, telecommunications, oil & gas, civil aviation, and IT, through harnessing complementarities. Moreover, with Russia joining the WTO, accelerating its economic reforms, and upgrading its Custom Union with Belarus and Kazakhstan to a 'Common Economic Space', new opportunities for trade and investment cooperation will open up that are attractive to Indian businessmen. We will also explore creating a joint investment fund, having a Comprehensive Economic Cooperation Agreement with the broader Eurasian region, securing greater connectivity through the North-South Transport Corridor, etc.
Q8. Analysts in Moscow feels that India in recent years accelerated her ties with Washington, especially in the field of nuclear industry, which was strained for decades till US sanctions imposed on India were lifted. As a result Russia, which pioneered Kudankulam nuclear plant has lost its monopoly and Kudankulam project completion is in jeopardy due to the public protest movement. Looking ahead do you think Russia can secure its leading position on the Indian nuclear market?
Ans: While India has stepped up its engagement with the rest of the world, we are clear that this will not be at the cost of our time tested and deep-rooted friendship with the Russian Federation. Russia was amongst the first countries to recognize the unique nature of India's nuclear programme and its impeccable record on non-proliferation. Russia is a partner that has been with us in times of difficulty, even when there were restrictions on nuclear commerce with India.
As regards Kudankulam, let me first make a general point that the safety and security of people has to be a paramount consideration for any country. The protests at Kudankulam reflect concerns over atomic energy and fears that nuclear power plants may affect livelihoods and the environment. We take such matters seriously and have assigned an independent group of experts to evaluate and respond to local concerns and fears, since the development of atomic energy in India has to be done with the support of our people. The Russian leadership too assigns the same priority to nuclear safety and has taken several welcome initiatives, including in the international arena. We will fulfill our commitments as regards India-Russia cooperation in the field of atomic energy. Let me also add that we appreciate the contribution made by Russian engineers and other experts working on the Kudankulam project.
Q9.After coming out with a largest single foreign investment in Sakhalin project, the two sides are discussing new ambitious projects of building gas pipelines, which can involve Iran, Pakistan and other regional powers and change the face of the vast region. How do you assess these plans? What is the scope for enhanced cooperation in the energy sector?
Ans: The energy sector illustrates the strong complementarities between our economies – Russia is a major producer of energy, while India is one of the fastest growing energy consumers. It also provides an excellent vehicle for a quantum increase in bilateral trade, investment and business-to-business ties. We have made a good beginning in hydrocarbons. India's ONGC Videsh Ltd (OVL) has made a large investment in Sakhalin-I and bought Imperial Energy, which operates in the Tomsk region. A framework Inter-Governmental Agreement for Enhancement of Cooperation in Oil and Gas Sector was concluded at the Annual Summit in December 2010, on which occasion OVL also concluded a Framework Agreement on Cooperation in the Hydrocarbon Sector with Russia's JSFC Sistema during the same Annual Summit. OVL and other Indian companies are seriously exploring several options for making further major investments in the hydrocarbons sector in Russia. I have discussed cooperation possibilities with the heads of major Russian energy companies, such as Gazprom, Lukoil, Novatek and others. There are many mutually beneficial opportunities in the hydrocarbons sector for us to work together in Russia, in India, and in third countries. We look forward to actively pursuing them. We hope to enhance our partnership in hydrocarbons and make cooperation in oil and natural gas yet another major pillar of our multifaceted ties.
We would welcome participation by Russian companies in major gas pipeline projects that are under consideration in the region and in which India is involved.
