Russia asks Indian companies to tap its natural resources

Moscow, Jan 27:

Russia has expressed its desire to draw Indian investment into developing its huge natural resources sector, seeking to move trade patterns from a long-standing supplier-consumer relationship into new economic partnership.

Wishing India’s Ambassador to Russia P S Raghavan Monday on the occasion of India’ 66th Republic Day, Russia’s Deputy Foreign Minister Igor Morgulov asked Indian companies to “enter Russia’s market more actively and develop abundant domestic natural resources” and “move gradually from supplier-consumer (relationship) to growing investments in the energy sector”.

Nuclear engineering was a key element of the Russia-India partnership, Morgulov said.

“Commissioning of a first power unit of the Kudankulam nuclear plant based on the safest technologies has turned in another stage in these ties,” the minister said, noting that “we are planning to build 20-25 nuclear reactors in different regions of the country”.

But “our co-operation is not limited to peaceful atom”, Morgulov added. “Russia is one of the global leaders in terms of hydrocarbon production and export and India is one of the major consumers,” Morgulov said, calling for a deeper investment-focussed approach to bilateral trade.

India and Russia inked 20 agreements, including in the sphere of defence cooperation, oil and gas and in trade, after the holding of the 15th India-Russia annual summit in New Delhi in December last year.

In the field of hydrocarbons, both sides inked agreements for India to scout for oil and gas in the resource rich Arctic Shelf. Russian President Vladimir Putin said that Russian energy behemoths Rosneft and Gazprom would join up with Indian companies to scout for oil and gas in the Arctic Shelf.

India’s ONGC Videsh Ltd. is already scouting for oil in the Sakhalin-1 field.

Both the sides also inked a vision document for the construction of 12 Russia-built nuclear units in India over the next two decades, besides committing to cooperate in uranium mining.

Facing sanctions from the European Union (EU) and the US over Ukraine and the slump of rouble following the slide in oil prices, Russia is looking for other partners to participate in its economy.

India has been a strategic partner for Russia and has numerous defence, space and nuclear cooperation deals. IANS