Russia emphasizes business relations with India during Modi's Moscow visit
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Russia and India Strengthen Bilateral Cooperation Amid Sanctions
Russia and India have pledged to boost collaboration across various sectors, from nuclear energy to shipbuilding, as their leaders convened in Moscow on Tuesday. Indian Prime Minister Narendra Modi's two-day trip to Moscow included a meeting with Russian President Vladimir Putin. This gathering also featured announcements from Russian state enterprises about agreements and plans for projects involving India.
Expanding Nuclear Cooperation
Among the notable developments, Russian state nuclear corporation Rosatom revealed ongoing discussions to construct six additional nuclear power units in India. This move would expand on the existing collaboration seen in the Kudankulam Nuclear Power Project in Tamil Nadu, which features Soviet-designed VVER-1000 reactors. Rosatom also mentioned plans for small nuclear power plants and enhancing the transit capabilities along the Northern Sea Route (NSR), targeting significant increases in the transport of Russian oil, coal, and liquefied natural gas by 2030.
Shipbuilding and Pharmaceutical Efforts
The Russian Direct Investment Fund (RDIF) secured a partnership with India's Enso Group for joint investments up to 20 billion roubles ($227 million) in shipbuilding infrastructure development. Additionally, agreements were reached in the fields of education and pharmaceuticals. RDIF chief Kirill Dmitriev emphasized the significant potential that Russian companies see in India.
Addressing Payment Challenges
Trade between Russia and India has been hampered by payment flow issues, exacerbated by a raft of Western sanctions. Speaking on this matter, VTB Bank CEO Andrei Kostin noted progress in the discussions but acknowledged that challenges persist, including those related to the rupee's incomplete convertibility and imbalanced trade. He expressed optimism about finding solutions despite the complexities involved.
As Russia continues to shift its focus from Europe to more "friendly" nations like India and China, both countries appear committed to strengthening their economic ties. The recent accolades given to Modi, including Russia's highest honor, the Order of St Andrew, signify the importance Russia places on this burgeoning partnership.
