India, Russia sign multi-billion deals

Russia and India have signed 16 bilateral defence, energy and infrastructure deals worth €6.4 billion during a visit by Indian Prime Minister Narendra Modi to Moscow.

At a joint press briefing, Russian president Vladimir Putin announced that Russia would build a dozen nuclear reactors in India over the next two decades to help the country meet its growing energy demands. He said that work on the first two reactors was now in preparation.

Russian state-owned oil company Rosneft will also supply 10 million tonnes of oil annually to the south Asian country over the next decade.

India and Russia have also agreed to the joint construction of multi-task Kamov-226 helicopters and the joint co-operation in exploration and production of hydrocarbons in Russia.

India will also increase its stake in the Vankor oilfield in Siberia owned by Rosneft, while visa restrictions between the two countries were eased

However, India’s widely-anticipated purchase of S-400 missiles – Moscow’s most sophisticated defence system – did not materialise.

“I see Russia as a prominent partner in India’s economic transformation,” Modi said. “We have laid the foundation of the future character of this strategic partnership.”

Putin said that Russia supported India’s “strengthening role in resolving global and regional problems” and backed New Delhi’s bid for permanent membership of the UN Security Council.

“We believe that India is a great power that conducts a balanced and responsible foreign policy and is one of the most worthy candidates to take the seat of a permanent member on the UN Security Council,” Putin said.

Russia and India are historic allies and have maintained strong military, economic and diplomatic ties since the end of the Cold War. Bilateral trade stands at $10 billion, and Russia is India’s second largest defence supplier.