Indo-Russian economic ties need a major fillip

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Ahead of Russian President Vladimir Putin’s visit, visiting Deputy Prime Minister Dmitry Rogozin has promised that Russia will not sell arms to Pakistan and indicated Moscow’s willingness to expand cooperation in defence production by building a new transport aircraft and battle tanks. These words of assurance reflect Russia’s desire to continue its historic and warm relations with India. This, however, should not deflect New Delhi’s attention from ensuring that there is no dilution of India’s nuclear liability laws during talks on units III and IV of the Koodankulam Nuclear Power Plant. India should reject Russia’s contention that the agreement on these units pre-dates the 2010 civil liability law.

Another issue that India needs to take up with Russia is the delay in delivery of the aircraft carrier Admiral Gorshkov. It was supposed to have come two years ago but there have been repeated postponements and the Indian Navy’s firepower is suffering. The latest promise is that the ship shall be handed over to India by the end of 2013. India should make it clear that while it has refrained from invoking clauses in the contract that provide for penalty to be levied on the supplier for ‘slippages or delays’ in view of its special relationship, Russia must keep its revised word of delivering the vessel by the end of 2013 in the shape and form that has been mutually agreed upon.

As external affairs minister S M Krishna pointed out to Rogozin, India and Russia need to bolster the economic content of their relationship. Now that India has liberalised investment in aviation, telecom and retail, Russian investment must flow into these areas. Information technology and hydrocarbons are other areas where Russia can invest. Bilateral trade too requires a boost. India and Russia must also strive to step up energy cooperation considering that while India is energy deficient, Russia is energy surplus. Now that Putin is back in the saddle and is shortly coming to India, the old bonhomie between the two countries must return. There can be little doubt that the potential for cooperation in various sectors is tremendous.

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