CHAPTER - 2

India Russia Relations

2A - Political Relations

India Russia relations have remained an important aspect of India’s foreign policy.
India’s relations with USSR were multi-faceted covering various spheres, as both
countries have similar security, political, and economic interests. Initially, Indo-Soviet
relations were cold. Even though Pt. Nehru expressed appreciation for the USSR’s
swift economic development, but still India was viewed a “tool of Anglo-American
imperialism”. After the death of Stalin in 1953, the Soviet Union started showing
interest in India and voiced its optimism for “friendly cooperation”. This was driven
by the Soviet desire to expand contacts in international arena. USSR wanted to
promote better relations with the “non-aligned” and newly emerged countries of Afro-
Asian region. In June 1955, Nehru visited the Soviet Union, and this was the first visit
of that country by the Indian Prime-minister. In November and December 1955
respectively, Russian Premier Nikolai Bulganin and General Secretary Nikita
Khrushchev paid return visits to India. These Soviet leaders supported various aspects
our foreign policy, including Panch Sheel. They also endorsed India’s position on
J&K.

The Soviet Union offered India newer avenues of trade and economic assistance. The
Soviet Union helped India in construction of plants to manufacture heavy equipment
& machinery, steel plants, Power plants, plants to produce precision instruments &
machine tools, Petroleum extraction and refining facilities. In this way USSR
contributed heavily in India’s industrial development. Soviet support was provided
through “long term government to government programs”. Under these programmes
continuous training was given to Indian technicians, raw material for various
processes was supplied, use of Indian inputs and Indian markets for finished products.
As India had a scarcity of convertible foreign exchange, Indo-Soviet trade was made

20
in “non-convertible national currencies”. Indian acquisition of Soviet military
equipment was made under Rupee-Rouble system. Arrangements were also made and
licenses were issued, so that the equipments can be manufactured or in India
concurrently. Further there was no restriction for deployment of these equipment or
foreign policy to be followed by India towards other nations or to adhere to Soviet
policy; and our national autonomy was never compromised.

The “Indo-Soviet Treaty of Peace, Friendship and Cooperation” signed in August

1971 was a defining moment in India Russia relation. It marked a high point of our
bilateral cooperation. The treaty safeguarded India’s “security, sovereignty and
territorial integrity”, and made China to refrain from getting involved in 1971Indo-
Pak war in favour of Pakistan. The treaty was so important for both countries, that in
1993, it was further extended after deleting security clauses.

The Soviet government never pressurized India to modify its political system or the
socio-economic system, though they had “party to party” friendly relations with
Indian leftist groups. In various international forums, the two countries had similar
views on most of the issues. But still, “India retained its independence of action and
judgment on international issues and thus remained true to its non-aligned status”. 18

From here onwards, the relations between India & Russia were very cordial for about
a decade. The era was the golden period of our strategic partnership. Various changes
made by Gorbachev in their foreign policy brought it nearer to that of India. Indo-
Soviet friendship reached its peak. But tragic part of this story is that this period was
very short lived. Gorbachev’s experiment with “Glasnost & Perestroika” failed,
bringing down the Soviet Union.

The year 1991 saw numerous changes in the erstwhile Soviet Union, communism
collapsed and democratic governments were installed one after the other in most of
the east European countries. In the Soviet Union itself the reforms initiated by
Mikhail Gorbachev had tremendous impact on the society; and the people aspired for

18
Dubey, Muchkund, “India’s Foreign Policy, Coping with the Changing World”, Pearson, New Delhi,
2012, p 171.

21
and got full democratic rights. In a country that had totally controlled economy and
politics for seventy years, Perestroika and Glasnost gave a new shape to the Soviet
economy and politics. But the reforms also led to the end of monopoly of power of
the Communist Party and introduction of multi-party democracy.

The Soviet Union suddenly disintegrated in December 1991 and the mighty state of
USSR was replaced by 15 Republics. Russian Republic was recognized by the
international community as the successor state of USSR. At the time of disintegration,
a loose union of erstwhile Soviet Republics was created and called the
Commonwealth of Independent States (CIS). India has maintained diplomatic,
friendly and cooperative relations not only with Russian Federation but also with the
other members of CIS. 19

Uncertainty dawned regarding the future of India Russia relations, with the collapse
of the USSR. India was faced with a difficult task of re-orientation of its foreign
policy conduct worldwide, struggled with the new challenges of shaping relationships
with different newly created successor states, instead of with one country earlier.
There was uncertainty regarding the place India would occupy in the new pattern of
Russian policy. Besides due to greater emphasis on relations with the industrialized
countries of the West, Russian relations with India got low priority. With the
emergence of independent Central Asian Republics, Russia’s borders fell further
apart. The stand taken by India during the August 1991 coup did not particularly
endear new Russian leaders.

The breakup interrupted India’s most reliable source of military equipment. Shortage
of spare parts seriously affected India’s capability to maintain existing weapon
systems. It became an extremely difficult task for India to coordinate supplies from
different independent states as the “military industrial complex” of the former Soviet
Union was now spread over 15 new independent countries and almost across the
entire Eastern Europe. For some time, the economy in Russia changed very hastily
and drastically, and affected the polity and the foreign policy of the Russian state.

19
Balakrishnan, T.K., “Foreign Policy of India – Problems and Paradoxes”, Mohini Publishers, New
Delhi, 2010, p 428.

22
Throughout the year 1992, Indo-Russian relations experienced strains. The first note
of discord came in May 1992 when Russian Prime-minister Gennady Burbulis
announced cancellation of the cryogenic engine deal due to western pressure. The
question of Rupee-Rouble debt issue also dogged Indo-Russian relations.

Politically, the collapse of the Soviet Union was followed by two years of relative
uncertainty in relations between India and Russia. Thereafter, India and Russia
decided to redefine their relations define based on the ground realities created by post-
cold war situation. Moscow began exploring the possibilities of resuming the Indo-
Russian ties. President Yaltsin replaced the old “1971 treaty” with the new “Treaty of
Friendship and Cooperation”, after deleting some security clauses which were
directed against America and China during cold war. A breakthrough was achieved in
settling the issue of Indian debt to Russia. Changing parameters of the relationship
also helped both sides to move from a buyer-seller interaction to one of the joint
development and marketing of weapon systems in defence sector. In other areas
relations gathered momentum from the mid-1990s itself. By the end of the decade, at
the diplomatic level, everything looked on track. Russian leaders clarified that India
would remain important in Russia’s overall South Asian policy. Russia
unambiguously supported India on the issue of J&K; and promised to back India in a
bid for a permanent UN Security Council seat and made a commitment not to give
military-technological assistance to Pakistan.

Russian President Vladimir Putin visited India in October 2000, and this visit gave a
boost to our bilateral relations. The outcome of that visit was a “declaration on
Strategic Partnership”. The old time-honored relationship was in poor shape for some
time, particularly during last phase of the USSR and early phase of Russia. When
India and Russia signed the “Indo-Russian Strategic partnership”; the same was not
only renewed but reaffirmed. Initial Russian experiment of “intense engagement with
the west” failed, and Russian leaders redirected the foreign policy eastwards. In the
new scheme China and India gained importance. This transformation in Russian
foreign policy was the result of “NATO’s post-cold war expansion in Europe, its

23
military involvement in the Balkans; and the growing political instability in
Afghanistan and in the Asian region thereafter”. 20

The distinctive feature of “Indo-Russian strategic partnership” is that it is has a

“strong political foundation” and it is endorsed by different political and ideological
groups, both in India & Russia. This relationship is predominantly based on
“extensive military cooperation”, enhanced by a collective vision of India & Russia,
regarding “desirable international order" and similarity of their opinion on “important
issues related to regional and international security”.

Political cooperation between the two countries has been the central structure in their
relationships. When Putin visited India for the first time, he initiated a practice of
regular summits which have been held annually alternating between the two countries
up to the present. Since then, the two countries have reinstated political relationship in
the form of arranging summit level meeting every year. Recurring “ministerial level”
talks are also essential aspect of bilateral relations between India & Russia. India &
Russia have deepened their collaboration on numerous political matters, such as
terrorism, rebellion in J&K and Chechnya, emerging circumstances in Afghanistan,
Central Asia, efforts for a “multi-polar world” on multinational as well as bilateral
fora.

Fight against Terrorism:

Terrorism is an issue that concerns both India and Russia. Though India has been a
target of this menace for a relatively elongated period but it surfaced in the bilateral
relations only after the downfall of the USSR. India is facing separatist activities in
J&K, and similarly Russia in Chechnya, both in the name of the “right for self-
determination”. Both nations are finding it difficult to restrain these movements. Both
India and Russia consider these movements as terrorism, instead of the “right for self-
determination”. It is believed by both countries that some neighbour countries are

20
Nadkarni, Vidya, “Strategic Partnership in Asia: Balancing without alliances”, Routledge, London,
2010, p-81.

24
assisting the separatists by providing “moral, political and financial support” to them.
Thus there is a convergence of views on the subject.

According to the Document on Strategic Partnership in October 2000 summit; India &
Russia have promised to work in close tandem, for fighting the menace of “global
terrorism and religious extremism”. Both decided to set up a “joint working group” to
plan out a collective approach to fight international terrorism. Both sides emphasized
“the importance of joint efforts for establishing a solid international legal basis for
cooperation in combating international terrorism”. 21

Putin reiterated that “India and Russia were natural partners and allies” in their
collective aspiration and objective of fighting terrorism. “Exchanges of information,
political support and joint decision making on any manifestation of extremism could
effectively weaken international terrorist groups”. 22
Both India and Russia are
actively engaged in their military offensive against terrorist groups operating in
Kashmir Valley and Chechnya respectively.

The factor of terrorism received international attention after the attack in New York
and Washington in September 2001, thus changing the politics in the region affecting
the whole gamut of international power equations. The creation of the so called global
coalition against terrorism was received well by both India and Russia. Russian
Deputy prime-minister Ilya Klebanov’s visit to New Delhi in October 2001 was of
crucial significance in this regard. He underlined the need for joint action by New
Delhi and Moscow against global terrorism.

Sh. Vajpayee, the then Indian Prime-minister, paid a return visit to the Russian
Federation in November 2001 contributed in carrying forward the “political dialogue
on global, regional and bilateral issues of mutual interest”. 23
While reaffirming their
commitment to fight terrorism, Prime Minister Vajpayee and President Putin signed
the “Moscow declaration on international terrorism”. It explicitly underscored that all
terrorist acts are unjustifiable and unacceptable. On this occasion, both leaders

21
Raja, Mohan C, “India Russia call for sanctions against Taliban”, The Hindu, October 6, 2000.
22
“India ‘fitting contender’ for UN seat: Putin”, The Hindu, October 2, 2000.
23
“Joint statement of India and Russian Federation”, Strategic Digest, November 6, 2001.

25
professed an ‘absolutely identical’ position which held that global terrorism
should be fought in accordance with international law and the provisions of the UN
24
Charter. The declaration also underlined the need for close interaction between the
two countries at bilateral and multilateral levels to deal with the menace of nuclear,
chemical and biological weapons, including illegal trafficking in arms and narcotics.

Russian Foreign Minister Igor Ivanov visited India in February 2002 was a big step
towards the bilateral relations between India & Russia. The focus of this meeting with
Indian leaders was on developing a common strategy to combat terrorism. Ivanov and
his Indian counterpart Jaswant Singh agreed that Pakistani President Pervez
Musharraf should translate his January 2001 speech, regarding his commitment to
fight terrorism, into concrete on the ground results. The two sides agreed that unless
cross-border terrorism was fully stopped by Pakistan there was no rationale for
resuming a dialogue with Islamabad. Putin went one step further during his visit to
India in December 2002, when he warned the world community that “Pakistan’s
weapons of mass destruction could fall into the hands of ‘bandits and terrorists’”. 25

India and Russia signed a “Memorandum of Understanding on Cooperation in

Combating Terrorism” during Putin’s visit in 2002. Based on this MoU, a “Joint
Working Group on Combating International Terrorism” was formed. The first
meeting of this JWG was held in Moscow in September 2003.

During meeting of this “Joint Working Group on combating International Terrorism”,

the parties stressed the commitment for eradication of new threats and
challenges which are an important aspect of “Indian-Russian special and privileged
strategic partnership”. They discussed the threats of “cross-border terrorism” and
expressed their commitment for the fight against the global threats. In UN Security
Council, India and Russia stressed the role of international effort for combating
terrorism; and argued for the implementation of “UN Global Counter-terrorism
Strategy” and other related resolutions for eradication of terrorism. They expressed
their concern towards drug trafficking which is responsible for hampering peace and

Suryanarayan, P.S., “India Russia think alike on global terrorism”, The Hindu, November 6, 2001.
24
25
Baruah, Amit, “Concern over terrorist acquiring Pak nuclear arms remain: Putin”, The Hindu,
December 1, 2002.

26
stability of the world; and wanted to start their negotiations in the form of
“Intergovernmental Agreement on Cooperation in Combating Illicit Traffic in
narcotic drugs, psychotropic substances and their precursors” which was signed on 8
November 2007. 26
India & Russia “have set up a panel of experts to fight terror and
to share information between their security agencies, exchange equipment and help
each other in training”. 27
This has always proved valuable for both India and Russia
to share each other’s experience in this important area of fighting terrorism.

During President Putin’s visit to India in 2007, he said that bilateral cooperation is a
vital part in “strategic partnership” between India and Russia. Both nations gave their
support to suppress funding of global terrorism and combating illegal drug-
trafficking. Both India and Russia are of the opinion that since terrorism and
organized crime happen to be global in nature, these issues need to be dealt at a
suitable forum like UN. Terrorism is a global destructive phenomenon affecting all
states and societies; and morally dangerous to all people of the world. India and
Russia strongly feel that “there can be no double standard in the fight against
terrorism otherwise this struggle will become meaningless”. 28

Russian President Medvedev visited India in December 2008. In November 2008,

there were horrifying terror attacks in Bombay in which 166 people died. This was the
first visit by any world leader, and hence it was significant and exemplary. For
obvious reasons, the top and most important point on agenda was terrorism, as both
countries faced the same problem of terrorism. Russian president voiced their
solidarity with the people in India. He vowed to “work with India on the whole
spectrum of problems and provide support in all directions”. After the summit a “Joint
Declaration” was signed, through which the global community was urged to help so
that the culprits of the 26/11 Mumbai attacks are brought to justice. The “Joint

26
“India-Russia Joint Working Group on Combating International Terrorism”, posted by Editorial,
http://Voice.of.india.com/ features/ india-russia -joint-working-group-on-com-bating-international-
terror ism/ 1507.
27
Mohanty Arun, “India Needs a Stronger Partnership with Russia in the Emerging Multipolar World”,
“MAINSTREAM, VOL XLVII, NO 51, December 5, 2009” available at http://www.mainstream
weekly. net/ article1807.html
28
Maharana, Sanjukta, “Indo-Russia Security Cooperation’, World Focus, Annual Issue, 408,
December 2013, pp 128-134.

27
Declaration” also called upon all countries to “actively cooperate with India in its
efforts to find the perpetrators, masterminds, sponsors and everyone connected with
the barbaric act”. 29

In April 2011, the 7th meeting of the “India Russia Joint Working Group on
Combating International Terrorism” was held. Both India & Russia stressed that they
will cooperate in thwarting the threats of terrorism, and this is an vital aspect of the
“Indo-Russian special and privileged strategic partnership”. The two countries voiced
shared unease regarding constant dangers of “cross-border terrorism”. India & Russia
reiterated the commitment to “consolidate bilateral interactions”, to fight against the
international menace. It was decided to establish a dialogue within the “Financial
Action Task Force (FATF)” and the “Eurasian Group (EAG)” on “Combating Money
Laundering”. Both sides expressed their anxiety about “the issue of drug trafficking
which undermines peace and stability in the region”. 30

Prime-minister Dr. Manmohan Singh visited Russia in October 2013. During his visit,
India & Russia “condemned terrorism in all its forms and manifestations”. The
leaders were In agreement that “sheltering, arming, training or financing of terrorists”
should not be tolerated at all. Both countries reaffirmed “the UN central role in
combating international terrorism and expressed their intention to make an active
contribution to counter terrorism”.31

Joint stand on Kashmir and Chechnya:

Terrorism in Kashmir and Chechnya has become a factor of common concern for
Russia and India. Both Russia and India have been handling the terrorism in their
respective parts. Whereas the concern in Russia is about two decades old, the Indian
concern is quite an old one. In both the cases, the similarity lies not only in their

29
Mohanty, Arun, “India Russia in the Post-unipolar World”, World Focus, Vol. 32, No. 11-12, 2011,
pp 839-845.
30
Russia and India Combat Terrorism Together, The Voice of Russia, April 12, 2012,
voiceofrussia.com/2012_04_12/71465838/
31
“Joint Statement on the 14th India-Russia Annual Summit: Deepening the Strategic Partnership for
Global Peace and Stability”, October 21, 2013, available at mea.gov.in/ bilateral-documents
.htm?d+1/22361

28
ethno-cultural dimension but also in the source and spectrum of terrorism they face.
The role of Pakistan in patronizing and promoting terrorism in both the areas is an
acknowledged fact; and this factor itself has provided stimulus to the leadership of
both the countries to take joint actions against terrorism.

The terrorist threat in the Russian Federation is linked to the separatist movement
launched by some Chechen groups. The terrorists in Russia have killed hundreds of
innocent people and now constitute “a threat to peace and stability of the country”.
There has also been a rise of Islamic extremist movements in some of the states of
Central Asian Republics, which can spill over to Russia and its other neighbours. The
organizations like the Hizbul Tehrir, the Islamic Movement of Uzbekistan, Taliban in
Afghanistan and similar extremist organizations in Chechnya constitute a hazard to
“peace and stability in the region”. The Dagestan Liberation Army was also an
Islamic extremist group that emerged in 1999 with the objective of fighting for the
independence of the Republic of Dagestan. Dagestan and the Republic of Chechnya,
which have a majority of Muslim population, are located in Russia’s Northern
Caucasus Region. The Chechen rebels, who adhere to Islamic fundamentalism,
sometimes claim Dagestan to be a part of Islamic Chechnya. Both Chechen and
Dagestan terrorists have carried out violent attacks in Moscow which have killed
hundreds of innocent citizens.

Like the Chechen conflict, the Kashmir dispute goes back sixty-five years, when India
and Pakistan became independent from the British colonial rule, amidst controversies
and violence following the partition of the country. Pakistan claimed that Jammu &
Kashmir being a Muslim majority state should have gone to it. For this reason
Pakistan had gone to war with India thrice in 1947, 1965 and 1999. Having failed to
seize Kashmir through wars, the rulers in Islamabad decided to get it through a
terrorist campaign, in the name of Jihad. For this purpose, Pakistan has used Islamic
extremist groups, several of whom have international connection including links with
the terrorist groups acting in Chechnya. The agencies in Pakistan have been training
and arming the terrorist in the state of Jammu & Kashmir, and after training they are
pushed into the Indian Territory. Many terrorists, including Chechens, were trained by

29
the US agencies during the war in Afghanistan; who after the withdrawal of the Soviet
army from Afghanistan were transferred by the Pakistani agencies to Kashmir.
Terrorists in Kashmir have also killed hundreds of people in that state. Some of these
elements have been fighting in Chechnya. In the present phase of political relations
between India and Russia, the common threat of terrorism is a factor that brings the
two countries together in their struggle against it. 32

External patronage:

External patronage has made terrorism unmanageable in the world today. The
conflicts in Kashmir and Chechnya have persisted largely due to consistent external
support, both at the moral and material level, behind the militant movements that
otherwise could have been addressed internally without the use of force in both the
cases. Pakistan’s role in promoting and patronizing terrorism in both these cases has
been internationally acknowledged. This has become “a matter of concern for both
India and Russia” because while India is situated in direct vicinity of Pakistan, Russia
is also not far from Pakistani influence, as the Central Asian region, that separates
Russia from Pakistan, is called soft- underbelly of Russia.

According to a news report, there were 38 military training camps to train terrorists in
Pakistan. After training in those camps, these terrorists were being sent to Kashmir,
Palestine, Bosnia and some other countries also. These terrorist carried out militant
operations in the name of Jihad. By another report, the number of such camps rose
many fold by the end of 1996. 73 such camps were reported in Pakistan Occupied
Kashmir, 23 in Pakistan and 12 in Afghanistan. 33
As in Kashmir, Pakistan’s
operations in Chechnya are also guided by religious fundamentalism and terrorist
outlook. Pakistan has been providing support and aid to Chechens. It was alleged by

32
Chopra, V.D. (ed.), “Significance of Indo-Russian Relations in 21st Century”, article by Kalim
Bahadur, “International Terrorism and Indo-Russian Relations”, Kalpaz Publications, Delhi, 2008, pp
229-233.
33
“Mahapatra, Debidatta Aurobinda”, “India Russia Partnership: Kashmir, Chechnya and issues of
convergence”, “New Century Publications, New Delhi, 2006, p-123”.

30
Russian officers that “hundreds of Afghans from refugee camps in Pakistan were
recruited to fight the Russian forces in Chechnya”. 34

International dimensions:

Russia and Indian convergence on various aspects of terrorism is not a new one. It has
been emerging from the beginning of Yeltsin era in Russian politics. This became
explicit when President Yeltsin visited India in January 1993. Casting off Indian
apprehension regarding Russia’s dismal approach on the Kashmir issue, Yaltsin
emphasized Russian unequivocal support to India. “Moscow Declaration”, signed
during the visit of India Prime Minister Narasimha Rao to Moscow in June 94, was
one of the milestones in bilateral relationship and in affirming joint stand in protecting
the interests of multi-ethnic states.

Both India and Russia affirmed their stand to check growing menace
of “religious fundamentalism, separatism and terrorism”, which normally disturbed
the unity of “pluralistic countries”. 35

Vladimir Putin, who succeeded Boris Yaltsin as President of Russia, took a pragmatic
and tough stand towards terrorism. He visited India for the first time in October 2000,
and this visit was a step further to delineate the common approach on terrorism. He
agreed with India on the issue of Kashmir and rejected ‘any foreign interference’ in
resolving the issue. Russia took the same stand on the Chechnya issue by rejecting
any third party mediation for the resolution of the issue. This was an evidence how
both the countries were forging common stand on issues of common concern. Putin
addressed the Indian Parliament on 4 October 2000. During this speech he deviated
from the written script. He came out with “absolutely true and verified” information.
He conveyed to the parliament that “the same individuals, the same terrorist
organizations, extremist organizations are organizing, conducting and igniting
terrorist acts from Philippines to Kosovo including Kashmir, Afghanistan and

34
ibid.
35
Mahapatra, Debidatta Aurobinda, “Terrorism in Chechnya and Kashmir: An Area of Convergence
between India and Russia”, International Center For Peace Studies, Journal of Peace Studies, Vol. 10,
Issue 4, October - December, 2003, available at http://www.icps net.org/ description. php?ID=275

31
Russia’s Northern Caucasus”. Thus India and Russia had same problem of “self-
determination, terrorism and separatism whether in Chechnya or in Kashmir were
cause of grave concern for both India and Russia”.36

Atal Bihari Vajpayee, the then Prime Minister of India, visited Russia in November
2001. He had lengthy discussions with president Putin. During the talks the Russian
president stated that “he would urge the US President George Bush to include
Pakistan-backed insurgents in Kashmir and Chechen rebels in Russia on the list of
terrorists to be targeted by the US-led coalition”. 37
Russian President Putin visited
India in December 2002. A day before this visit, Russian Foreign Minister, Igor
Ivanov reaffirmed that the terrorist activities both in J&K and in Chechnya were
linked to each other. He said, “Today ties between the terrorists operating in
Chechnya, Afghanistan, Kashmir, the Philippines and other parts of the world have
become a generally accepted fact. It is well-known that they have undergone training
in the same camps and are using similar crime tactics and methods”. 38

The heightened situation of international terrorism provided the base for Russia and
India to set up a “Joint Working Group (JWG)” on counter terrorism, when President
Putin visited India in December 2002. Prime-minister Vajpayee’s visit to Moscow in
November 2003, further confirmed the Russian support to India’s position on cross-
border terrorism. The joint statement issued on 13 November 2003 insisted that
Pakistan should “implement in full its assurances to prevent infiltration of terrorists
across the Line of Control; and to dismantle the terrorist infrastructure in Pakistan and
Pakistan-controlled territory as a pre-requisite for a purposeful dialogue between the
two countries”. 39
In this background, both the countries are expected to adopt
common approach on issues like terrorism, whether it is terrorism in Kashmir or in
Chechnya. Presently the Russian point of view on Kashmir is in favour of India. This

36
Ibid.
37
“Role of Russia in India’s security environment in 21st century particularly in defence posture”
available at http://shodhganga.Infl ibnet.ac.in /bitstream/10603/ 6859/11/11_chapter%206.pdf
38
Igor Ivanov, "Russia and India: Together in the Struggle against International Terrorism. The
Strategic Partnership in Action," Published in the Newspaper ‘Rossiyskaya Gazeta’, December 2, 2002
available at http://www.mid.ru/bdomp/brp_4.nsf/e78a48070f128a7b4 3256999005bcbb3/
9a930285388a6c9c43 256c8300536dde!OpenDocument
39
Radyuhim Vladimir, “Russia backs India on terrorism in Kashmir”, The Hindu, November 14, 2003
available at http://www.thehindu.com/2003/11/14/stories/20031114 02791100.htm

32
is important because Russia is a “major power and permanent member of UNSC”:
and is making all out efforts “consolidate past friendship and make bilateral friendship
a reality”.

Cooperation on Afghanistan:

Afghanistan has been unstable for the last many years. Instability in Afghanistan has
also adversely influenced peace and security not only in Russia & India but Central
Asia also. It is feared that instability in Afghanistan can adversely affect the stability
in Central Asia. Central Asian region is known as “Russia’s strategic underbelly”.
Hence Russia is worried about the situation in Afghanistan. Similarly, India also
earnestly considers that the groups involved in “armed insurgency” in J&K have
strong links with Afghanistan. In addition to the threat of terrorism from various
groups having links in Afghanistan, both India and Russia attach “political and
economic importance” to Afghanistan. As the matter was of common interest, India &
Russia decided to set up a “Joint Working Group (JWG) on Afghanistan”. This
indicated the importance of cooperation on this issue between India & Russia. In view
of the “worsening of situation in that country, increasing Talibanization of Pakistan
and new Af-pak policy of the US”, India and Russia are maintaining regular and
active collaboration on this subject through the “JWG on Afghanistan”.

History shows that India shared warm cultural links with Afghanistan. India viewed
Afghanistan and Central Asia as an extension of its regional geo-political competition
with Pakistan where Afghanistan had to play a vital role because of its location. It has
been an important aspect of Pakistan’s foreign policy to have “strategic depth” in that
area. If India also has the same objective, there will be Pakistani resentment against it.
Afghanistan presents a “gateway to energy rich Central Asian States”, and hence
important to us. According to a report by a US based Pakistani Policy Working
Group, “Pakistan’s concerns that India is trying to encircle it by gaining influence in
Afghanistan, has in part led to continued Pakistani ambivalence towards the

33
Taliban”.40 Under the circumstances, India would like to confirm that the states in that
region or either in favour of India or they are neutral.

The 9/11 terrorist attack in the US were a sign of the rise of Islamic fundamentalism
and terrorism. After these attacks and dissolution of the USSR, Russia wanted to
check the rise and consolidation of “Islamic or national movements in the Central
Asian Republics” or even in any part of Russia itself, such as Chechnya. The effect of
the 9/11 terrorist attacks on the US and the war lead by the US in Afghanistan, India
& Russia had to change the strategy being followed by both of them. Both silently
accepted the role of the US in fighting terrorism. The reason for this sort of
cooperation was that upon breakdown of the USSR, Russia had proven unable to
maintain stability in Central Asia and secondly, despite military and economic support
by India and Russia, it was not possible for the Northern Alliance to topple the
Taliban regime. In 2001, after the end Taliban, India tried to renew ties with
Afghanistan. India has a huge stake in Afghanistan and has committed around $2
billion in developmental assistance to that country, thus becoming one of the leading
international donors in Afghanistan. Besides a consortium of Indian companies,
both from public and private sector won the right to invest in the Hajigak iron ore
reserves in Afghanistan. 41 After globalization, it is more important to have “economic
cooperation”, than to go for “military intervention”. Russia is also exploring options
for investment in Afghanistan.

In the present scenario, when US led war in Afghanistan has ended, there is a
potential danger of destabilization in the region and Afghanistan can be a center of
“Islamic radicalistic movements”. Both India and Russia are concerned about the
situation arising in Afghanistan after the withdrawal of US forces from there. Russia
is worried because the terrorists may shift to Central Asian Region. This will affect
Russia’s authority in the region. India is also apprehensive that destabilized
Afghanistan may harbor transcontinental terrorists, and may disturb the internal

40
“Bajoria, Jayshree, “India-Afghanistan Relations” Council on Foreign Relations, July 22, 2009
available at http:// www.cfr.org/india/india-afghanistan-relations/p17474”
41
Borah Rupakjyoti, “India-Russia cooperation in post-2014 Afghanistan”, Russia & India Report,
April 29, 2014 available at http://in.rbth.com/world/2014/04/29/india-russia_cooperation_in_ post-
2014_ afgh anistan_34889.html

34
conditions here. Increase on Pakistani impact in Afghanistan will also be a source of
worry for India. Thus cooperation between India and Russia is essential on
Afghanistan issue, particularly after pull out of American and other armed forces from
this country. As per one of the current agreements India will help and fund
Afghanistan for procuring Russian weapons. India has also shown willingness to help
fledgling Afghan National Army (ANA). In October 2011, India and Afghanistan
signed a “strategic partnership agreement”. As per the same, India will assist
Afghanistan in “training, equipping and capacity building programme for Afghan
National Security Forces”. India looks upon Afghanistan in the context of its
rivalry with Pakistan as well as it also recognizes substantial economic
potential. India wants to avoid the return of a Pakistan aligned government in Kabul
which uses Afghan soil to prepare terrorist attacks on India. 42

After the withdrawal of US-led NATO forces from Afghanistan, India & Russia are
troubled about the situation in Afghanistan arising in 2014. India and Russia could
play active roles to maintain peace and stability in the fragile nation and its
neighbourhood. Both countries have already deliberated on this issue in forums
including in SCO, BRICS and RIC. Recently they deliberated on joint projects for
peace in Afghanistan. India Russia partnership can also provide necessary bulwark to
counter menaces of drug trafficking and terrorism in that region. 43 In case the Taliban
were to take over the reins of power in Afghanistan once again; Russia, India and Iran
would need to revive their cooperation to back up a grouping in Afghanistan which
could serve as an antidote. The stability of Afghanistan is also critical to the safety
and security of the planned TAPI pipeline which will bring natural gas from
44
Turkmenistan to India; and is scheduled to be operational by 2019. Stability in
Afghanistan will be helpful in implementing other “ideas” like the “North South

42
Nopens Patrick, “The Impact of the Withdrawal from Afghanistan on Russia’s Security”, Security
Policy Brief, No. 54, March 2014 available at http://www.egmontinstitute.be/ wp-content/ uploads
/2014/ 03/SPB54.pdf
43
Mahapatra, Debidatta Aurobinda, “India-Russia cooperation set to rise in 2014”, Russia & India
Report, January 8, 2014, http://in.rbth.com/economics/2014/01/08/india-russia_cooperation_set_to_
rise_ in_ 2014_32127.html
44
Borah Rupakjyoti, “India-Russia cooperation in post-2014 Afghanistan”, Russia & India Report,
April 29, 2014 available at http://in.rbth.com/world/2014/04/29/india-russia_cooperation_in _post-
2014_ afghanistan_34889.html

35
corridor”, which will provide a link between Russia and India. This will be the
shortest transport corridor between India and Russia. This short route will boost the
trade between India and Russia, and can be adapted as a peace route
and should “serve as a barrier to the movement of extremists and drugs”. 45
India
would need to go for innovative diplomacy when it engages with post-2014
Afghanistan in the interest of its own national security.

Common stakes in multipolar world order:

Both India and Russia are in favour of a “multipolar world based on sovereign
equality” of all countries; and emphasize the acknowledgement of “legitimate security
interests of all states”. India and Russia expressed “determined opposition to the
unilateral use or threat of force in violation of the UN charter, and to intervention in
the internal affairs of other states, including under the guise of humanitarian
intervention”. 46
Both India & Russia pronounced “a political declaration on Global
Challenges and Threats to World Security and Stability”. As per this declaration,
India and Russia agreed to synchronize their “efforts and positions” on matters of
mutual interest when raised at regional level or international level. In their oft-
repeated global vision, Moscow and Delhi have been supporting the concept of a
“multi-polar world”, much before its emergence. This conceptualization determines
policies that facilitate emergence and further strengthening of a “multipolar world”,
instead of a “unipolar world”. This idea stipulates “co-existence” of different centers
of power in the world, where all these power centres act for “a collective security
system, that promotes “greater regionalism” for supporting common regional
interests, negotiated settlements, autonomy in the sphere of policy making and
primacy of UNO in international decision making. 47

The disintegration of the Soviet Union altered the power equations in international
politics. Though Russia remained a military power, it lost its erstwhile dominance in
45
Virajith, “Indo-Russian partnership in post-2014 Afghanistan”, available at http://indian
defence.com/threads/indo-russian-partnership-in-post-2014-afghanistan.25483/
46
Mohanty Arun, “India needs a stronger partnership with Russia in the Emerging Multipolar World”,
Mainstream, Vol. XLVII, No. 51, December 5, 2009 available at http:// www.main stream weekly. net/
article1807.html
47
ibid.

36
matters of economy and politics. It was no longer a super power. The US was the only
superpower, reigning over the instruments of world economy and politics. The scene
after the collapse of the Soviet Union seemed to be ripe for “a unipolar world led by
the US”. Russia then preferred the CSCE (Council of Security and Cooperation in
Europe) route for developing close relationship with the west. But, developing a new
security system through CSCE was not a priority for other post-communist states in
Eastern Europe, which were more interested in membership of “NATO (North
Atlantic Treaty organization)”, and the emerging “EU (European Union)” foreign
policy. Because of these calculations Russia was pushed aside in discussions about
the European Security. 48

In international politics in 1993, Russia asserted independence in its foreign policy

and advocated in favour of pragmatism later called multi-polarism. In 1997, Russia
confronted the west over the NATO expansion in Eastern Europe. Russia argued that
this process would undermine Russia’s efforts to manage European Security through
bodies like CSCE. The protest as with the NATO action did not stop the west from
going ahead with the expansion. The west, led by US, was not interested in the
development of a new international order based on a multipolar cooperative security
order; Russia took the lead in propagating the idea of a multipolar structure in the
west. Yevgeny Primakov took a number of steps for the evolution of a multipolar
world structure. In December 1998, the Prime-minister of Russia visited India. During
the visit, he talked about a “strategic triangle covering India, Russia and China for
peace and stability in the world; and to check uni-polarism”.

The Russian drive, to promote multi-polarism in international politics, had its strong
support in India. The Prime-minster of India, A. B. Vajpayee, visited Russia in
November 2001. In the Joint Statement issued after the visit affirmed “their
commitment to cooperate bilaterally and at the multilateral level on strategic issues
for the development of a multi-polar world based on a new cooperative security

48
Mahapatra, Debidatta Aurobinda, “India-Russia Partnership – Kashmir, Chechnya and issues of
convergence”, ibid, p 154.

37
order”. 49
On the international issues, like tensions in the Middle-east and the Gulf,
both the countries held common position. Russian President Putin visited India in
December 2002. In their joint statement after the visit both countries “strongly
opposed unilateral use or threat of use of force in violation of the UN charter and
stressed that a comprehensive settlement of the situation in Iraq is possible only
through political and diplomatic efforts in strict conformity with the rules of
international law and only under the aegis of the United Nations”. 50
Regarding the
US military strike on Iraq in 2003, both countries opposed any unilateral action
against Iraq bypassing the UN.

Both India and Russia want a multipolar world and want to increase the efficiency of
multilateral cooperative mechanism. They believe that in this multipolar world, the
UN should be given Central role and international law should be given predominant
position in the solution of regional crisis and for the security and stability of the
world. Both countries also affirm that the serious most dangers of the current era, such
as “international terrorism, proliferation of weapons of mass destruction and regional
conflicts”, can be resolved by the consolidated application of global law.

Russia favours India to join in various important international organizations. Putin

supports “Observer Status’ for India in Shanghai Cooperation organization (SCO)”.
Russia also supports India’s complete integration with SCO. India gives highest
priority to SCO’s fight ‘against international terrorism, religious extremism and
combating narcotics trafficking’. Russia also supports Indian proposal to make a
united front for struggle against international terrorism. Both recognize that
international terrorism is the global threat. This global threat can be solved by the
initiative of a global institution.

President Putin declared that Russia and India determinedly favor the establishment of
a “multi-polar system of international relations” and stress that political means along
with diplomatic resources must be used for resolving disputes, on legal lines. Both

49
“JOINT STATEMENT OF INDIA AND THE RUSSIAN FEDERATION ON STRATEGIC
ISSUES”, PIB release, 6 November 2001 available at http://pib.nic.in/archieve/lreleng/lyr2001/
rnov2001/ 0611 2001/r0611200110.html
50
Shodganga.infilibnet.ac.in/bistream/10608/16654/10/10_chapter%205.pdf

38
countries are of the opinion that UN must be modified to suit the present realities and
circumstances of the world; and which is able to preserve the peace and stability of
the world. Russia supports India’s great role in world and regional policy
formulations.

Russia is very intimately linked to former Soviet Republic. It also needs to preserve a
strong bilateral, multilateral cooperation with Central Asian Republics. India and
Russia have similar stand on various issues like the settlement of Middle-east crisis,
Iranian problem, situation in Central Asia, Afghanistan situation and so on. Russia
along with India has emphasized that “the future world order must be based on
collective mechanisms for addressing global problems”. In the “multi-polar word” ,
both countries feel that “principle of supremacy of law, sovereign equality, territorial
integrity; and non-interference in internal affairs of the countries” should be the
established norm.

Democracy:

After the fragmentation of the USSR, the leadership of Russia adopted the path of
democracy for the development of Russian Society and polity. The initial years
(1991-1993) of Russian democracy were fragile. The elementary apparatus of
democracy did not hold the ground. Even some writers predicted the failure of
democracy in Russia because Russian culture was mainly anti-democratic and anti-
51
liberal. Initially, contending political forces fought their battles by means of
52
character assassination, threats, wild demagoguery; and finally tanks and bullets.
By the year 1995, political conflict was likely to be waged. Slowly and gradually, it
started to evolve itself into a mature democracy.

Boris Yaltsin adopted the principles of democracy in his own characteristic fashion.
During his speech at the UNSC on 31st January 1992, he said “our principles are
simple and understandable: the supremacy of democracy, human rights and liberties,
legality and morality” The Russian constitution incorporated the “principle of

51
ibid
52
Ibid

39
popular franchise” and “Law of basic Guarantees of Electoral Rights of the Citizens
of the Russian Federation”. However, the incorporation of these democratic principles
became slow in the initial years. With time the situation started gaining momentum.
Because of the spirit of pluralism and democracy, Russia has never faced dearth of
political parties to represent diverse interests of the diverse people. The transition of
Russian Society from command system to democratic system started proceeding in a
smooth manner. A survey conducted showed that 75% Russian agreed that they could
choose any organization they wished; and 79% believed that there had been a great
increase in freedom of conscience. 53

Both India and Russia have the same goal of establishing democratic order. Both are
determined to reinforce the “fundamentals of democracy; to impart maximum
transparency to their respective social, economic and political system”. 54
There is
much that Russia can learn from the rich democratic experience in India. In order to
strengthen the democratic process in Russia they signed an agreement in 1998 on
establishing an Indo-Russian Inter-Parliamentary Commission co-chaired by the
“Speaker of Lok Sabha (India)” and the “Chairman of the State Duma (Russia)”. Its
first session was held in New Delhi in March 2000. In this session both the countries
discussed about the democratic conditions in each country and focused on exchange
of democratic ideas between the two countries.

Vladimir Putin firmly believed that given the conditions in Russia, it could become a
great power “by combining the principles of market economy and democracy”. When
Putin visited India for the first time, he complimented the “democratic system” in
India saying that this “positive experience is very valuable for Russia because Russia
like India is a huge pluralistic state”. He admitted that the Russia recently adopted the
democratic system of governance, and being a new system, it suffered from certain
weaknesses. He opined that Russia can establish democratic ethos, by learning from
“Indian democratic experience”. As Russia and India both had democracy, both are
multi-ethnic, both are pluralistic societies, and both were being attacked by terrorists;

53
Mahapatra, Debidatta Aurobinda, “India Russia Partnership: Kashmir, Chechnya and issues of
convergence”, ibid, p161.
54
Ibid, p-162

40
the governments in both countries thought that they can come closer to take “common
positions against non-democratic countries” like Pakistan, in which the military
regime was providing protection to such terrorists.

Hence, this affirms that both, India and Russia have common stakes in the
preservation and smooth functioning of democracy, not only in their own countries
but around the world also. Inter-parliamentary contacts also act as cement in Indo-
Russian partnership; as such contacts provide opportunities for politicians of different
parties to interact with each other. As different political parties of India and Russia are
involved, it provides “continuity, trust and mutual understanding” in relationship.

Since collapse of USSR, many visits have taken place from both sides. In November
1998, Lok Sabha speaker, Shri G. M. C. Balayogi, visited Russia. This visit provided
another high point in our bilateral relations. During the visit it was decides to establish
“India-Russia parliamentary Commission”. 55

Collaboration on multilateral forums:

India and Russia are also cooperating with each other in the United Nations
Organization “within the framework of the Comprehensive Convention on terrorism
and the Convention for the Suppression of Acts of Nuclear Terrorism”. India and
Russia both want that United Nations Security Council must play “Central
Coordinating role” for maintaining global peace and security. Both also intend that
UN must be more efficient and authoritative in all area of world affairs. To achieve
this goal, both India and Russia have decided that bilateral collaboration must be
fortified for reforms in UNSC (UN Security Council) to make it relevant to present
situation, more representative, and powerful to deal with new and evolving tasks.
“Russia is the first country to have extended full and unqualified support to India’s

55
“Russia Urges India to step up Inter-Parliamentary Cooperation”, India Defence available at
http://indiandefence.com/threads/russia-urges-india-to-step-up-inter-parlia mentary-cooperation.24675/

41
bid for a permanent seat in the expended UN Security Council years back, while the
stand of other P-5 members on the issue still remains ambivalent and ambiguous”. 56

Russia and India are keen on building a “multi-polar world order”. India’s support at
international fora like G-20 and some mutual alliances like BRICS, RIC makes
relations of these two countries very significant. Shanghai Cooperation Organization
(SCO) was created to jointly take necessary action against terrorists active in “CIS
and China”. Russia, China and Central Asian States are members of this organization.
Russia is trying hard to get India admitted in it as a member. As a first step towards
the goal, India was admitted to SCO as “observer” at the Summit held in Astana.

India and Russia try to have synchronization of their “foreign policy approaches” on
most of the global and local issues. Both countries are of the opinion that the
International system is changing, and these changes provide an opportunity to build
“international order” that is” inclusive and democratic", based on “supremacy of
international law”. It should be done by “adhering to the objectives and principles
enshrined in the UN charter”.

-----------------------------

56
Mohanty Arun, “Indo-Russian Strategic Partnership: A Reality Check”, Mainstream, Vol. XLIX, No.
16, 9 April 2011.

42
 2B - Economic Relations

India and the USSR had close political and economic ties for over four decades before
the dissolution of the Soviet Union. The Soviet Union had a major share in the
development of several basic industries in India including steel, mining, heavy
engineering, power and so on. Both countries has solid trade & economic relations till
disintegration of the USSR. But during 1990s, both Russian as well as Indian
businesses had a difficult period of adjustment in the conditions created by change
from a “centrally planned economy” to a “market economy” in 1991. During the same
period India followed “policies of economic liberalization”. These economic changes
affected the character & nature of economic relations between India & Russia. Since
early 90s, there had been a tapering down of trade between India and Russia. Many
Indian & Russian companies had difficulties in adjusting to the markets in each
other’s countries.

The decade of 1990s was a tough time for Russian economy. On one hand, Russia
switched its economic system, and secondly, the change took place at a time when the
Russian economic system was having crisis after crisis. Due to this turmoil, the
Russian economy was reduced to half compared to its size in 1990. In August 1998,
another economic & financial crisis affected the Russian economy. On the other hand,
economy in India grew faster in 1990s than in any other period in the near past. For
Russia, the average annual growth rate during this period was (-) 4.8%, whereas for
India it was (+) 6%. Hence, India Russia relations need to be analyzed in this context.
During 2000 to 2004, the economy in Russia grew rapidly, but the private sector in
India, remained “very slow in taking advantage from sustained Russian growth”.57

It is argued that economic changes in both the countries had adverse impact on
bilateral economic ties. Purchases of defence equipment by India and investments by
Indian PSU companies are mainly responsible for survival of these relations. The
“special relationship” was limited mainly to arms trade and defence technology.

57
Sachdeva, Gulshan, “India-Russia Strategic Partnership Strengthened with Putin Visit. World
Focus (New Delhi) Vol. 25: No. 10-12, October-November, 2004”., P-38-40.

43
Indian private companies failed to make good use of opportunities offered by changes
in Russian economy. Though the two governments had good intentions, but they were
not been able to provide any major economic initiative for better bilateral ties. Since
the beginning of long-term trade agreements in 1953, total of 7 long-term trade
agreements had been inked by the two countries till collapse of the Soviet Union. The
bilateral trading relationship had broadened, deepened and been institutionalized
within a frame work of “special payment system of trade, called Rupee Trade System
based on annual plans”. The main aspect of “the system” was payments in “non-
convertible currency”.

For a struggling India which was striving to achieve economic development and
stability, the cooperation with Soviet Union was of big importance and vitality due to
its timely assistance. India and Russia started cooperating in the sectors like
hydropower, metallurgy, science and technology; and culture which resulted into
major projects like steel plants of Bokaro and Bhilai; Bhakra Dam and Hirakund
Dam; and several others in the field of defence and other sectors, which till date
remain the milestones of deep and value based cooperation between Russia and India.
This cooperation was at its zenith during the tenure of Indira Gandhi and Leonid
Brezhnev in the 1970s and 80s.

The trade turnover between India & USSR was less than Rs. 2 Crore in 1953 and it
went up to approx. Rs. 8000 Crore by 1991. In 1990-91, Indian export to USSR and
imports from it, were 16% and 6% of the total figures respectively, as is evident from
the following table:

44
 TABLE - 1

India-USSR Trade Relations, 1960-61 to 1990-91

Exports % Share in Imports % Share in

Year
(Rs. Crore) Total Exports (Rs. Crore) Total Imports
1960-61 29 4.5 16 1.4
1970-71 210 13.7 106 6.5
1980-81 1226 18.3 1014 8.1
1990-91 5255 16.1 2528 5.9

“Source: Economic Survey 2000-01, Ministry of Finance, Government of India.”

The initial years in bilateral relations in the aftermath of the Soviet disintegration
were not only uncertain but also marked by a high degree of suspicion. In this period
of transition from a socialist pattern of society to market economy marked by
turbulence in every aspect of Russian Society, Polity, Economy and Culture; the
leadership gave up the traditional approach towards its old allies including India. In
the post-communist world, the focus was on democracy, market reforms and
pluralism; for which, the leaders thought, western aid was essential. The
developments such as ‘the sudden shift in the priority areas, Rupee-Ruble crisis,
Cryogenic rocket controversy, Russia’s attitude on Kashmir’ revealed that economic
relations between India and Russia were not smooth. However, within a time frame of
about two years, the Russian romanticism with the west came to a halt and it turned
towards the old allies.

President Boris Yaltsin visited India in January 1993, which brought a new phase in
India Russia relations. Two days before the start of the visit, there was a programme
on the Russian TV channel in Moscow, discussing the state of Russia-India relations
and the impending trip by Yaltsin. Yaltsin said that his visit would work the start of a
qualitatively new relationship, preserving the positive elements from previous relation
and building on the accumulated good will. He also said, “the visit to be seen as a
major demarche by this great country and as part of our efforts towards forming

45
Russia’s new Asian policies.” 58
By January 1993, Russia’s relationship with India
had improved substantially. During his visit, Yaltsin said that Russia fully supported
India’s stand on Kashmir. “The state was an integral part of India; and Russia would
continue to support India’s unity and territorial integrity.” The most diplomatic
achievement of Yaltsin’s visit was that “a new friendship treaty” was signed for
boosting bilateral ties. Many other agreements were also signed in different fields.
The treaty also envisages combating drug trafficking, crime and terrorism, and
cooperation on trade and terrorism, and cooperation on trade and economic matters;
culture, education, arts, environmental protection; sports and tourism; social security
and healthcare.

On economic front there were some signs of efforts by both sides to limit damages to
the bilateral relationship. For example, Russia decided to purchase agricultural
commodities worth US$300 million to reimburse India’s debt for state credits. An
Indian toothpaste manufacturer decided to set up a joint venture project in Russia.
And on November 6, 1993, an agreement was signed for a joint Russo-Indian
59
development of a small, fourteen seater civilian aircraft. One major development
that took place after 1993 was the increasing level of defence cooperation between
Russia and India. It was not secret that Indian military establishment had been
dependent on Russian spares in India were 40%, 64% and 80% for the Army, the Air
force and the Navy respectively. A new emphasis was made on investments and joint
ventures “in areas of mutual interest”. Four letters were exchanged on the settlement
of India’s debt to erstwhile Soviet Union. They covered modalities of debt repayment,
i.e. , purchase by Russia of goods and services from India under Indian Credit line;
Reimbursement of Russia to Indian exporters for goods already exported, but not paid
for, up to 31 December 1992; and counter-trade and other internationally recognized
forms of trade. It was decided that the Indo-Russian trade should follow “prevailing
international practices” instead of “Inter-Governmental Protocols”.

58
Shearman, Peter (Ed.), “Russian Foreign Policy Since 1990”, Article by Ramesh Thakur, “Russian
Policy Toward India: A Relationship on Hold”, Westview Press, Boulder, USA, 1995, pp.225-246
59
Shearman, Peter, ibid p 240.

46
Though, starting with disappointing note after the dissolution of the USSR,
the Russian defence cooperation went up gradually. For instance, the countries signed
an agreement on military cooperation on 22 October 1996, during the visit of Russian
Defence Minister, General Igor Rodionov to New Delhi. In October 1996, Shri
Mulayam Singh Yadav, the then Defence Minister of India, visited Moscow. During
the visit an agreement was signed to extend military-to-military cooperation.
President Yaltsin, during his discussions with Yadav, repeatedly referred to his
country’s relations with India as ‘brotherly’.

The uncertainty regarding the cooperation in nuclear field was overcome gradually in
the later phase of the Yaltsin period. The Russian leaders during the visit of Indian
External Affairs Minister, I. K. Gujral, to Moscow in February 1997, reiterated that
Moscow would honour its commitment to sell nuclear reactors to India. The Russian
Parliament on 14 March 1997 approved with applause the statement that each one of
its factions supports the policy of cooperation with India. This was an indication of
the overwhelming public support in Russia for strengthening relations with India.

However, the 1990s represented one of the most difficult decades in the Indo-Russian
relations. Though the initial two years were almost non-starters in bilateral relations, it
was only with the visit of then Russian President Yaltsin that the relations gathered
momentum. Though Politico-Strategic relations strengthened; but post-1993 period
was not much enthusiastic from the point of view of economic cooperation. It was in
the decade of 2000 that both the countries realized the “imperative of economic
cooperation”.

Trade between India & Russia declined sharply in the first half of the 1990s, which
was a crisis period immediately after Soviet break-up. This indicated the severe
impact of the Soviet break-up, on the Indo-Russian economic trade. An important
aspect of the bilateral trade was high fluctuations in trade over the years, which
indicated lack of stability in trade relations between the two countries. India-USSR
trade turnover in 1991 was US$5.5 billion. Indo-USSR trade was conducted in Rupee,
based on annual trade plans. Following the breakup of USSR, Rupee trading system
was abandoned, coupled with dismantling of the Central buying and selling system in

47
Russia, disruption in industrial output and restructuring of the Russian economy,
greater contact between Russian and western market, indo-Russian trade declined
during 1992-1993. Since then the bilateral trade continued to witness an upward trend
till the economy was caught up with financial crisis in 1998. The trade turnover which
reached US $ 1.9 billion in 1995-96 slumped to US $ 1.3 billion in 1998-99 a decline
of 34%. The bilateral trade turnover, however, registered a positive growth of 25% in
1999-2000 over the previous year. The reasons for positive growth could be increase
in the import demand of agriculture products like rice, fruit pulps, juices and
concentrates, potatoes, tea and coffee from India as the domestic production of these
items were badly affected in 1998. Secondly, due to the deteriorating health
conditions in Russia it is understood that there has been a great demand for medicines
from India.

The trend in India-Russian bilateral Trade during 1993-2000 was as follows:

TABLE - 2

Indo-Russia bilateral trade during 1993-2000 (in US $ Million)

Trade Exports Imports

Year Exports Imports
Balance (% Change) (% Change)

1993-94 649 257 392 6.80 0.91

1994-95 807 505 302 24.48 96.40

1995-96 1047 858 189 29.62 69,96

1996-97 812 629 183 (-)22.43 (-)26.65

1997-98 954 679 275 17.52 7.96

1998-99 709 545 164 (-)25.66 (-)19.68

1999-00 953 618 335 34.31 13.35

Source: DGCI&S, Calcutta.

48
In addition to the official trade between the two countries unofficial trade was carried
out by fly-by-night operators, which assumed a major proportion in the 1990.
According to unofficial estimates, another US $ 10 billion worth of shuttle trade by
fly-by-night individuals from Russia and other CIS countries, travelling to India on
weekly/ fortnightly/ monthly basis with hard currency and carrying back consumer
goods in great demand as air cargo, mostly by return flights, took place during 1990s
period. Besides India, Hong Kong, Singapore, Thailand, Turkey, Saudi Arabia were
other major countries from which shuttle trade was carried out. But these fly-by-night
operators often traded in substandard goods; and these substandard items going to
Russia affected India’s image in the Russian market.

Composition of India’s Trade with Russia

During the period of 1990s, readymade garments (as a group), tea, drugs and
pharmaceutical products, together accounting for 45% were the major items of India’s
export to Russia. Tea continued to be the major export item even with decline in
exports from 21% in 1997-98 to 17% in 1999-2000. Exports of drugs and
pharmaceuticals gained upward trend during the period. Other items such as cotton
yarn fabrics, made ups, coffee and tobacco, spices and rice continued to be important
in India’s export to Russia.

TABLE - 3

COMPOSITION OF MAJOR EXPORTS FROM INDIA (in US $ Million)

1995- 1996- 1997- 1998- 1999-

Item
96 97 98 99 2000

Tea 143 75 193 198 160

RMG of Cotton including Accessories 40 30 53 93 158

Drugs, Pharma and fine chemicals 91 109 106 48 114

Cotton yarn fab Made-ups etc. 36 62 77 51 68

Coffee 102 86 94 59 52

49
 1995- 1996- 1997- 1998- 1999-
Item
96 97 98 99 2000

Tobacco unmanufactured 22 30 59 25 45

RMG of wool 33 34 26 16 39

Non-basmati Rice 32 90 41 34 36

RMG of man-made fibers 12 12 16 26 34

Plastic and Linoleum products 28 33 31 13 24

Machinery and equipments 20 21 14 19 21

Electronic goods 18 5 20 6 19

Spices 9 9 15 8 12

Castor oil 14 2 2 1 12

Leather goods 6 6 8 5 10

Footwear of leather 19 12 28 12 10

Cosmetics and Toiletries 35 19 20 9 8

Processed minerals 60 32 1 16 6

Total (including Others) 1047 812 954 709 953

Source: Centre for Monitoring Indian Economy.

As regards imports from Russia, fertilizers, Iron and Steel, and Non-ferrous metals
together accounting for 51% enter the Indian market. Fertilizers with 31% share
during 1999-2000 continue to be the single largest item of import from Russia. Other
principle items of import from Russia include Newsprint, Coal, Coke and Briquettes,
Primary Steel, Synthetic Rubber, Cotton Raw and Waste indicated a substantial
increase from 1998-99 to 1999-2000.

50
 TABLE - 4

COMPOSITION OF MAJOR IMPORTS INTO INDIA (in US $ Million)

1995- 1996- 1997- 1998- 1999-

Item
96 97 98 99 2000

Fertiliser manufactured 168 30 77 149 191

Iron and Steel 131 77 157 75 63

Non-ferrous metals 179 164 136 56 60

Newsprint 85 74 82 61 50

Coal, Coke and briquettes - - - 6 41

Non-electrical machinery 48 28 39 22 30

Primary steel pig iron based items 29 9 10 4 24

Metaliferous ores and metal scrap 10 11 17 13 20

Synthetic and reclaimed rubber 4 5 8 12 16

Cotton raw and waste 5 - - 2 16

Organic chemicals 46 29 35 19 15

Project goods 16 9 1 18 15

Gold and silver 17 3 1 35 10

Transport equipment 13 38 17 6 8

Inorganic chemicals 2 14 18 13 3

Total (including Others) 858 629 679 545 618

Source: Centre for Monitoring Indian Economy.

Indian exports failed to make impressive gains in the rapidly changing market
situation in Russia, faced tough quality and price competition from other competitors.
Before the Soviet disintegration, for over four decades, they closely depended on
Soviet Foreign Trade Organization (FTO), Government of India Departments and
Banks; to secure contract and execute them without even knowing the ground

51
realities, like consumer preferences, quality of the goods/ service traded with. Often
their supplies did not match with the demand. In other words, they never faced a real
market competition. As a result, they were not prepared to adjust to the market
realities. Political uncertainty, inflation and cumbersome custom procedures and tax
laws, deteriorating security system, criminal mafia and non-availability of reliable
banking system during the 1990s further complicated their efforts. Moreover, the
1998 fiscal crisis in Russia led to total bankruptcy of thousands of foreign companies
including many Indian firms, and blunted their confidence to do business in Russia.
60
But the trade had started picking up only in 1999-2000. and crossed US $ 1.5
billion.

“Indo-Russian Trade and Economic Relations Since 2000”

When the USSR broke up in 1991, India Russia ties were virtually at the lowest point,
as Russia faced the “economic meltdown”. Further President Boris Yaltsin was not
very enthusiastic about “what he considered as ideology-driven special relationship of
the Soviet times”. 61
This resulted into collapse of the trade turn over between Russia
& India. The turning point in Indo-Russian relations came nine years after the
collapse of the USSR. Vladimir Putin became the president of the Russia. He visited
in October 2000. During his visit, a historic “Declaration on Strategic Partnership”
was signed, “which reversed the decade long downslide in bilateral relations”. 62
The
signing of “Declaration on Strategic Partnership” and sixteen other agreements in
various fields, boosted bilateral cooperation in “Defence, Political, Trade &
Economic, Science & Technology; and Cultural spheres”. As per the declaration it
was decided that the leaders of the two countries would meet annually, and respective
government departments would hold talks on the issues of common concern at regular
intervals. To boost bilateral trade, the declaration talks about “further developments of
cooperation in banking and finance; and improving credit and insurance facilities”.
Under the “Integrated Long-Term Programme (ILTP) of Scientific and Technical

60
Dash, P.L. & Nazarkin, Andrei M., “India and Russia: Strategic Synergy Emerging”, article by
Suresh Babu, “Indo-Russian Economic Cooperation: A Futuristic Approach”, Authors Press, New
Delhi, 2007, pp 125-134.
61
Vladimir Radyuhim, “Is the Glass Half Full or Half Empty”, the Hindu, December 16, 2010.
62
Ibid, the Hindu, December 16, 2010.

52
Cooperation” signed during the visit, both countries undertook more than “100 joint
scientific projects”, to develop cheaper technologies in different fields such as
computer chips, new materials and energy sources. President Putin visited India in
December 2002. During this visit a joint declaration resolved “to strengthen
economic, scientific and technological cooperation between the two countries”.

The last quarters of 2003 witnessed some positive development in economic

cooperation between India & Russia. The Confederation of Indian Industry (CII)
opened its office at the Russian Chambers of Commerce and Industry in October 2003
to facilitate the process of economic cooperation. When Prime-minister Atal Bihari
Vajpayee visited Moscow in November 2003, 85 Indian businessmen accompanied
him to study the prospects of investments and joint collaborations with Russian
63
companies. The third visit of Russian President in December 2004 reaffirmed the
“declaration on strategic partnership between India and the Russian Federation”. Both
the countries emphasized the traditional strong bilateral relations on the areas in
which the future of the Indo-Russian economic relations need focus. 9 agreements
were signed during this visit, which included arrangement for use of the “Russian
Global Satellite Navigation System (GLONASS)” by India, and “peaceful
cooperation in outer space” and a “strategic cooperation agreement in the Gas sector
between the two countries”. “Direct banking relations between Indian and Russian
entities were also agreed upon”. 64

Both India and Russia felt the need to cooperate in the development of the banking
sector. This was particularly necessary to provide support for promoting trade
between the two countries when the Debt Repayment Funds will cease to be
important for repayment facilities for India’s exports to Russian. In this regard the
creation of a new bank jointly by two Indian banks, “the State Bank of India and the
Canara bank”, might be able to meet the needs for facilitating payments for economic
& trade transaction.

63
The Hindu, December 10, 2003.
64
Baruah, Amit, “Putin not for diluting veto power of UN Security Council”, December 4,2004.

53
Both the countries decided to look into newer options to upgrade their economic
cooperation for reversing the abrupt decrease in mutual trade. The two countries
showed interest towards using “the joint venture set up to develop an oil field in the
Sakhalin peninsula as the template for such enterprises in the territories they control
as well as in third countries”.65

Since 2000, when Russian President Putin visited India for the first time, bilateral
summits became an annual feature. Since then 35 important bilateral documents have
been signed. These summits enabled assessment of the status of mutual cooperation in
all spheres, which included trade and economy. The sixth summit on 4-7 December
2005 in particular set the target to move away from declaratory stage to a constructive
phase of action. Both countries jointly earmarked goals to “expand trade in hi-tech
products to improve forms and methods of investments to bolster scientific and
technological partnership in priority areas such as space exploration, IT, Software
parks, Communications and Advanced and Alternative technologies”. Both the
countries were not contented with the level of the bilateral trade, which accounts for a
mere one and a half percent of the global trade with a turnover of $1.8 billion in 2004-
2005 which economic analysts attributed to India's remaining struck to public sector
and governmental engagements at a time when 70% of Russian economy was
controlled by the private sector.66

The 11th “Indo-Russian Inter-Governmental Commission for Trade, Economic,

Scientific and Technical; and cultural cooperation” held in October 2005 in Moscow,
which was co-chaired by the Former Foreign Minister and the Deputy Prime-minister
of Russia, set goals to involve public sector companies into investment cooperation
and to support efforts by big private companies in this direction. Large Russian and
Indian companies like Gazprom, Rosneft, Stroytransgaz, Zarubezhneft, ONGC and
GAIL were engaged in investment activities in the area of Hydro-carbons, including
upstream and downstream facilities, LNG, Modernization/ construction of power
plants at Tehri, Kudankulam, Highways, Railway lines, and Inland waterways.

65
Opinion Editorials, Friendship Reaffirmed, The Hindu, December 6 2004
66
Sachdeva, Gulshan, "Trilateral Economic Cooperation," World Focus, Vol. 26: No 4, April 2005, P-
19.

54
In the energy sector, including nuclear energy, security was emerging as the key
dimension of Indo-Russian economic partnership. In 2004, after a meeting between
the two heads of state, both sides agreed, “To promote and assist Indian investment
into Russian energy sector and Russian investment into Indian energy sector”. Both
the leaders re-iterated this during the Indian Prime-minister’s visit to Moscow in
December 2005. Referring to India’s investment in Sakhalin-I, Indian Prime-minister
Manmohan Singh showed interest in Sakhalin-III venture where Russian and
international energy majors such as Lukoil, Gazprom, Rosneft and Exxon Mobil were
all jockeying for position.

In 2005 Indian Prime-minister Manmohan Singh visited Russia. During the visit, theu
agreed on “technology safeguard while implementing the long-term cooperation in the
area of joint development, operation, and use of the Russian Global Navigation
Satellite System (GLONASS)”. The two countries also agreed on cooperation in the
field of “Solar Physics and Solar Terrestrial relationships within the frame work of
Coronas-Photon project”. The agreement facilitated “integration of the Indian RT-2
payload with the Coronas-Photon spacecraft; and the joint space experiment using the
RT-2 equipment”.

Indo-Russian trade, despite lot of complementarities between the two economies,

remains at an abysmal low level, which increased marginally to the volume of US $
2.72 billion in 2006. This was not in tune with high overall economic growth of both
India & Russia during that period. The leaders of both countries reiterated the
commitments made earlier to increase trade; and a target was set to increase the trade
volume to US $ 10 billion by 2010. In fact most of the economic engagements
remained confined to military and hydro-carbon sectors. India remained struck to
public sector governmental engagements while bulk Russian economy was controlled
by the private sector. The complaints of the “harassment of Indian businessmen by
immigration authorities at Russian airports, denial of entry to Indian company
employees even with valid business visas, optimizing the Indo-Russian shipment
route (the North-South corridor), the expansion of inter-banking cooperation and the
issue of utilizing the remaining funds under the Rupee-Rouble Debt agreement”; were

55
serious hurdles in the way of achieving desired level of economic cooperation
between the two countries.

Bilateral trade between India & Russia was about US $ 1.95billion in 2004-05. The
same increased by 39.5% during 2005-06 and reached the level of US $ 2.72 billion.

The details of Indo-Russian bilateral trade during 2000-2001 to 2005-2006 are as

under:

TABLE - 5

Indo-Russia bilateral trade during 2000-2006 (in US $ Million)

Year Exports Imports Total

2000-2001 889.01 517.66 1406.67

2001-2002 798.18 535.71 1333.88

2002-2003 704.00 592.61 1296.61

2003-2004 713.76 959.63 1673.39

2004-2005 631.26 1322.74 1954.00

2005-2006 729.89 1992.01 2721.90

Source: DGCI&S, Calcutta.

From the above table, it is seen that exports from India to Russia were US $ 889.01
million in 2000-2001, and came down to US $ 631.26 in 2004-2005. There was a
minor increase in exports to Russia during 2005-06. On account of the growth of
15.62%, the exports gained the level of US $ 729.89 million.

In 2006, a Joint Study Group was set up to “work out a programme for enhancing the
bilateral trade to US $ 10 billion by 2010 and to explore the possibilities of a
Comprehensive Economic Cooperation Agreement (CECA)” between India & Russia.

Russian President Vladimir Putin again visited India during January 2007. The visit
gave a new push to the mutual relations between India & Russia. This visit also

56
strengthened the “interests of both states in maintaining their traditionally close and
friendly relationship”.

During this visit President Putin attended the Republic Day military parade. In return
of this honour given by India, he displayed “enormous goodwill” for India. Both
countries had “friendly and detailed talks”. After long discussions, the heads of the
two countries signed “protocol on many areas of bilateral relations”. In addition to
arms and energy contracts, talks between the two sides opened new horizons for
cooperation in every field. Putin stated, “Both countries are market-oriented
economies and therefore need to make greater efforts to conquer each other’s
markets”. For this Putin assured his cooperation to ease out the norms and conditions
for Indian businessmen to make them comfortable to enter into the Russian market,
including the “non-traditional sectors”.

Russia’s Economic Report of December 2006 states that it has been experiencing
severe shortage of skilled labour due to demographic decline. This has had an adverse
effect on its economic growth. In this context, it could be of mutual interest if
professionals from India were to be hired to meet Russian requirements. This idea was
discussed during Putin’s January 2007. When the Russian Minister of Economic
development and Trade visited India in March 2007, the issue was further taken up.
During November 2007 Russian visit of Indian Prime-minister Manmohan Singh to
attend the eighth annual summit between the two countries, the two countries signed
agreements in defence and energy sectors.

The two day official visit of Russian President Medvedev to India in the first week of
December 2008 to discuss bilateral ties was significant. This visit happened at a time
of global financial crisis and just after the26/11Mumbai terrorist attacks. In all 10
agreements were signed in areas covering civil nuclear cooperation, economy,
defence, tourism, space and combating terrorism.

The leaders of both the countries voiced serious concern over the slow growth of their
trade and economic cooperation during the last two decades. The point of respite
expressed by the two countries was minor growth of bilateral trade since 2005. The

57
growth, though very meager, but provide hope of better days to come. In spite of all
this, the Annual Trade turnover between India & Russia remained around US $ 2-3
billion for years. In 2007, it was, about US $ 5 billion, causing some contentment on
both sides. Further, the volume of bilateral trade was anticipated to reach US $ 7
billion by the end of 2008. This trend raised the hope that the trade volume may US $
10 billion by the year 2010. The environment of hope resulted into higher mutual
investment. “The Joint Chief Executive Officers Committee co-chaired by Mukesh
Ambani from the Indian side and Russian tycoon Evgeny Yavtushenkov, whose
telecommunication company Systema planned to invest $ 5-7 billion in India, signed
an MoU, raising hopes that big private actors now play a dynamic role in promoting
economic and investment cooperation between the two countries”. 67

To prepare a road map for raising bilateral trade, a Joint Study Group was set up.
Based on its report submitted in 2007, “a Joint Task Force comprising the Indian
Ministry of Commerce and Industry and the Russian Ministry of Economic
Development was set up in February 2008 to monitor progress on CECA, but with
few concrete results emerging from the exercise”. 68

The second meeting of “India-Russia Joint Task Force (JTF)” in the area of
Economic cooperation was held on March 26-27, 2009 in Moscow. During this
meeting, the Joint Task Force reviewed the position of mutual trade and it was noted
that there was significant increase during 2008-09. Bilateral trade in the period April-
November 2008 witnessed an increase of over 80% in comparison to corresponding
period of previous financial year. Fertilisers and Pharmaceuticals sectors witnessed
particularly high growth. The JTF discussed the position in various sectors. The sector
which were specifically addressed were “Agriculture and Food Production,
Chemicals, Petrochemicals and Pharmaceuticals, Fertilisers, Construction and
Engineering Services, Transportation and Tourism”. The JTF recommended that the

67
http://www.mainstreamweekly.net/article1090.html
68
Kundu, Nivedita Das, “India Russia Strategic Partnership”, Academic Foundation, New Delhi, 2010,
p-116.

58
restrictions on import of Indian plant products to Russia should be removed. In this
context, the JTF also recognized the need for a mechanism for prior consultations
before imposition of country wide trade restrictions. The JTF recommended exploring
the possibility of setting up of joint ventures in both countries in the field of
pharmaceuticals and Fertiliser. India continued to be an appealing destination for FDI
“Foreign Direct Investment”, and over US $ 21 billion was invested in India during
April to December 2008. Accordingly, numerous Russian companies expressed
positive response for setting up of Joint Ventures with Indian companies in the areas
of “Pharmaceuticals, Fertilisers, Agro-processing, Construction and Engineering
Services”.

Apart from goods, services trade was also one of the significant factors of Indo-
Russian economic relations. As per the report of the Russian central bank, “India and
Russia had about US $ 680 million services trade in 2008”. 69
Services exports from
Russia were related to construction and maintenance of equipments. In 2008 services
trade was in favour of India. Indian exports increased from US $ 90 million in 2003 to
about US $ 500 million in 2008.

TABLE - 6

India-Russia Services trade during 2003-2008 (in Thousands of US $)

Russian Exports to Russian Imports from Total Trade

Year
India India
2003 442,875 92,130 535,005
2004 214,886 107,085 321,971
2005 192,291 96,154 288,445
2006 208,887 133,941 342,828
2007 235,575 217,619 453,194
2008 177,704 502,171 679,875

Source: The Central Bank of the Russian Federation.

69
http://www.cbr.ru/eng/statistics/credit_statistics/print.asp?file=trade_2002-08_e.htm

59
On 30th September 2009, Indian Commerce and Industry Minister met the Russian
Prime-minister Vladimir Putin, in Moscow. He reaffirmed “India’s abiding
commitment to nurture and consolidate the strategic partnership with Russia”. During
this meeting discussions were held on numerous issues of mutual interest, and
regarding “means to diversify and deepen the economic engagement with Russia”.
Indian Commerce and Industry Minister also met Russian Minister for Economic
development, and launched the “third India-Russia Forum on trade and investment”.
Deputy Prime Minister of Russia Alexander Zhukov addressed the forum. Over 300
delegates from Indian as well as Russian Industry also attended the forum. During the
meeting of Indian Minister for Commerce and Industry with his counterpart, Shri
Sharma emphasized on “the need to diversify bilateral trade and move away from just
commodity trading to high-level investments in identified sectors”. During the
meeting some sectors were acknowledged as the priority sectors, such as Energy,
Nuclear energy, Pharmaceuticals, Information Technology, Processing of agro
products, other High technology areas, and jewelry & gems. The two ministers agreed
that “the bilateral trade between the two countries needs to have an ambitious agenda,
given the strategic nature of bilateral engagement”. A trade target of US$ 15 billion
was set to be achieved by 2012. During the talks with Russian Minister of Industry
and Trade, it was emphasized to “encourage joint ventures through regular business to
business interaction”.70

For the annual summit, Indian Prime-minister, Manmohan Singh visited Russia from
6th to 8th December, 2009. On this occasions also, India & Russia signed 6 pacts for
stimulating the relationship, and to break the dull phase witnessed for few years. Not
only the “path-breaking civil nuclear energy agreement” was signed, but both sides
also agreed on signing three pacts in the military sphere. It was decided to carry “a
cultural exchange programme over the next two years and a credit line for facilitating
bilateral trade”. These contracts helped in strengthening the existing areas of
cooperation. Fresh areas, such as communications, IT, Energy & pharmaceuticals,
were also recognized so that bilateral trade can be increased. In spite of the worldwide

70
“http://commerce.nic.in/pressrelease/pressrelease_detail.asp?id=2479”

60
recessionary conditions, economic relations between us grew, ensuring sustainable
growth rates in investment and trade. During the meet, it was resolved “to triple the
modest bilateral trade of $ 7 billion to $ 20 billion over the next five years”. 71

The bilateral ties ascended to new heights, when Vladimir Putin, the then Russian
Prime-Minister, visited India in March 2010. Mutual economic & regional security
issues were an important part of the agenda for the meeting. Economy and energy
needs of India were rising exponentially; and to support India on the same, Putin
pronounced support “in all areas of civil nuclear cooperation, including the disposal
of nuclear waste”. Senior Russian ministers & officials, along with many Russian
business leaders were part of the delegation that accompanied the Russian leader. This
indicated that Russia was serious in increasing economic cooperation in all possible
areas, so that gloomy phase of economic relations can be ended. Putin talked to
businessmen from Mumbai, Delhi, Bangalore & Kolkata through video conferencing.
He said that “Indian and Russian banks are working out a legal document, a legal
foundation to enhance cooperation.” 72
He intimated about liberalization of banking
system by Russia so that global financial institutions can work there freely. These
measures were aimed to banking links between the two countries and to improve
economic bonds between India & Russia. The meeting was also significant, as many
commercial contracts were signed between Oil and Natural Gas Corporation Limited
(ONGC) & Gazprom, and also between NPCIL and Atomostroy export for two
more Nuclear Power Units at Kudankulam Nuclear power Plant in Tamil Nadu. Not
only arms contracts worth multi-billion USD were signed during the meet arms deals,
but Inter-governmental agreement was also finalized for cooperation in area of atomic
energy and to prepare a road map for the future.

Indian Russian trade registered an increase of 7.5% in 2009 over that of 2008 figures.
In the beginning of 2010, it picked up by 40%, with exports and imports both rising
by 40%. In 2009, the total machinery exports from Russia to India were US$3.03

71
India Russia Sign Six Pacts, Vladimir Radyuhim and Sandeep Dikshit, The Hindu, December 8,
2009.
72
Roy, Meena Singh, “Putin’s Visit to India: resetting the Indo-Russian Partnership”, Strategic
Analysis, Routledge, Vol. 34, Issue 4, 2010, pp 490-495.

61
billion which was 51% of the total figures. Similarly, fertilizers at US$0.8 billion
accounted for 13% of the total; and ferrous metals and related products at US$5.30
million for 9% of the total figures. The major item imported by Russia from India in
2009, was pharmaceuticals amounting to US$464 million (30% of the total). Other
imports from India were machinery and equipment, transport vehicles and instruments
amounting to US$268 million (18% of the total), agricultural produce and food at
US$165 million (11% of the total) and textiles at US$156 million (10% of the total).73

On 18th November 2010, sixteenth session of the “India-Russia Inter-Governmental

Commission on Trade, Economic, Scientific, Technological and Cultural
Cooperation” was held in New Delhi. During the same, the focus was on the
possibilities to expand cooperation in the field of Economic, Trade, Technology,
Culture and Science. Both countries demonstrated atonement at the rise of mutual
trade.

The India trip of the Russian President Dmitry Medvedev, in December 2010 injected
fresh contents in India-Russia partnership.74 This time also a series of “defence,
energy, trade and cultural agreements” were signed during the summit. Both sides
agreed that economic cooperation was a weak link in the strategic “multifaceted
relationship” and pledged to boost mutual trade. India & Russia reiterated to achieve
the target of US $20 billion by 2015. Both nations asserted that the investment by the
Russian Federation and India in each other’s country should be increased to tap
“considerable potential” available on both sides. Both sides recognized that the
“Privatization programs and Programs aimed at fostering technological innovation”
might be encouraged “in their respective economies”. A MoU was signed with Russia
to set up joint venture in the Pharmaceutical sector to enhance cooperation. It was also
identified that “Joint research projects and Knowledge exchanges” in various areas

73
Mikhail Rapota, “Trade and Investment Cooperation between Russia and India’, August 10, 2010,
Russia& India Report, http://in.rbth.com/articles/2010/08/10/trade_ investment_ cooperation_ russia_
india_ 04592.html”
74
Bhadrakumar, M.K., “India-Russia Ties in the Neo-liberal Era”, the Hindu, January 4, 2011.

62
were required. A deal for design and development of Supersonic fighter aircrafts
worth about US$ 35 billion was also finalized. 75

Medvedev’s visit was marked by a US$ 295 million deal, aimed at joint development
of the Fifth Generation Fighter Aircraft (FGFA). Russia’s Sukhoi Design Bureau and
Rosoboronexport and India’s Hindustan Aeronautics Limited were to carry out the
project. 76 India and Russia chose to “diversify the trade basket and participate in each
other’s privatization programme”.

Visa processing was a major hurdle in the way of developing better trade and
economic cooperation. Hence it was agreed to ease out the process to enhance mutual
cooperation in the time to come. Insufficient banking & financing facilities was also a
serious limitation in the matter. “In this context agreements, signed between the
Vnesheconombank of Russia and India’s Exim Bank and State Bank of India, were
encouraging signs”.77

Dr. Manmohan Singh, the then Prime-Minister of India, visited Russia from 15th to
17th December 2011. India and Russia during the meet signed five bilateral
agreements in a range of sectors including Defence, Health and Education. The
IRIGC-TEC, during the 17th session in November 2011, adopted decisions aimed at
“ensuring dynamic growth of bilateral economic ties focused on innovative and high-
technology components, as well as investment projects that would contribute to the
modernization and growth of both the economies”. Russia’s imminent entry into the
World Trade Organization was applauded by India. The two countries agreed to
jointly work towards the prospects of a “Comprehensive Economic Cooperation
Agreement” between India and the Belarus – Kazakhstan - Russia Custom Union. It
was decided that business missions in various fields of cooperation shall be
exchanged, and details on industrial modernization opportunities in India shall be

75
Mathur B., REUTERS, 22 December 2010, “India, Russia strike deals during Medvedev visit”,
http://in.reuters.com/article/2010/12/22/idINIndia-53727220101222
76
Borah, Rupakjyoti, “India-Russia Relations: Rekindling The Past”, January 20, 2011, http://oriental
review .org/2011/01/20/india-russia-relations-rekindling-the-past/
77
Mohanty, Arun, “Indo-Russian Strategic Partnership: A Reality Check”, MAINSTREAM, VOL
XLIX, NO 16, APRIL 9, 2011, http://www.mainstreamweekly.net/article2679.html

63
worked out. It was decided to explore the idea of a “joint investment fund and to
promote greater cooperation between the regions of the two countries. 78

Bilateral trade between India & Russia increased in spite of global financial and
economic crisis. The bilateral trade during 2011 was US$ 8.893 billion, out of which
US$ 6.094 billion was Russian exports to India and balance US$ 2.799 billion being
imports from India. It was also observed that the Indian exports to Russia increased
by 31% during 2011, whereas Russian exports to India came down by 4.66%, as
compared to the respective trade figures of 2010. Pharmaceutical products, Fabrics &
Textile products, Agro products, Machine equipments, readymade cloths and vehicles
and tools etc. were the major items imported by Russia from India. Major items
imported by India from Russia were “Machinery and mechanical appliances, transport
equipments, vehicles, aircrafts etc., Fertilizers, Ferrous metals and articles thereof, Oil
and Gas, Paper and paperboard”.79

The year 2012 was marked the 65th anniversary of diplomatic relations between India
and Russia. Russian President Putin visited India on 24 October 2012 for the 13 th
annual Indo-Russian summit. Putin assumed the office of President of Russia for the
third time and this was his first visit after that. The agenda of the talks focused on
expanding bilateral trade and economic ties. Trade between Russia and India had
increased by nearly six times since 2000. Vladimir Putin commented on prospects
for future cooperation. Mutual trade amounted to nearly $9 billion in 2011 and both
sides expected it to grow to $10 billion in 2012. The Russian President termed the
trade between the two countries as “balanced”; exports and imports from both sides
being almost 50% of the total trade. Both Russia-China and India-China trade figures
expected to be US $ 100 billion in 2015, but compared to the Russia-China and India-
China trade figures, the Indo-Russia trade figures were very low.

78
“Joint Statement furthering the India-Russia Strategic Partnership to meet the challenges of a
changing World, Moscow, December 16, 2011, available at http://www.indianembassy.ru/index.
php/en/bilateral-relations/statements-speeches-interviews/798-joint-statement-furthering-the-india-
russia-strategic-partnership-to-meet-the-challenges-of-a-changing-world.”
79
“The website of Indian embassy in Moscow, “OVERVIEW OF INDIA-RUSSIA ECONOMIC
COOPERATION’, available at http://indianembassy.ru/index.php/economic-cooperation/overview”

64
A deal was signed between the State Bank of India and the Russian Direct Investment
Fund. Under the deal both are to contribute US$ one billion to create a consortium,
and to invest the funds “in high return projects in attractive sectors in manufacturing
and service sector companies”. The aim of the same was to strengthen the economic
and business relations. Another agreement was signed for joint investment in health
and pharmaceutical sector. Russian Pharm Eco entered into agreement with Indian
partners for a modern biotechnological plant, where medicines worth about US $ 100
million of investment will be produced. Russia and India signed ten bilateral
documents during the summit, including eight agreements and MoUs in the field of
“Defence, Science and Technology, Space, Investment, Software, Pharmaceuticals
and Culture. The defence contracts worth about $5 billion reaffirmed Russia’s
continued domination in the Indian defence sector”. 80

Under the framework of the “St Petersburg International Economic Forum (SPIEF
2013)” a meeting was organized in June 2013. Shri Anand Sharma Minister of
Commerce & & Industry from India and Denis Manturov, Russia’s Minister of
Industry & Trade were the co-chairman of the meeting. Many leading Indian and
Russian companies attended the meeting. In this dialogue the progress of Indo-Russia
trade and economic cooperation was appreciated. Anand Sharma in his address said
“there was significant potential for cooperation in areas such as infrastructure
development, aviation, power generation, energy, information technology, bio and
Nano technologies, fertilizer, pharmaceuticals and chemicals”. 81

The 14th India-Russia summit was held on 21st October, 2013 at Moscow. The meet
was co-chaired by Prime-Minister of India Dr. Manmohan Singh and the President of
Russia Vladimir Putin. Both India and Russia expressed satisfaction over the fact that
bilateral trade touched a record of US$ 11 billion in 2012. They also agreed that to
enhance economic cooperation, it is important to have better investment collaboration
between the two. Both countries noticed the fruitful results on the “2nd session of

80
Sharma, Rajeev, “Russia and India Report”, December 24, 2012 “http://in.rbth.com/articles/2012
/12/24/13th_indo-russian_summit_reaffirms_time-tested_ tie_ 21243.html”
81
Korablinov, Alexander, “Russia and India Report”, June 25, 2013 http://in.rbth.com/ economics/
2013/ 06/25/india-russia_ business_ dialogue_held_in_st_petersburg_26471.html

65
India-Russia working group on Modernization and Industrial Cooperation” held in
Moscow. India and Russia both agreed to further reinforce bilateral cooperation in
various areas like mining, civil aviation, fertilizer industry and automobiles. Both the
countries also decided to create “a Joint Study Group for studying the possibility of
signing of CECA agreement between India and the Customs Union of Belarus,
Kazakhstan and Russia”. Both India and Russia emphasized the role of the IRIGC-
TEC, as a key mechanism for evolving better bilateral interaction in the field of
economy & investment. The two countries reached to an understanding to
explore the prospects of transporting hydrocarbons directly from Russia to India
through the land route. Both agreed that a Joint Study Group may be set up for this
purpose. The summit meeting dealt seriously with the issue of steeply increasing the
India-Russia mutual trade. It was also identified that the same is possible by stressing
on some “key sector like defence and sun-rise sectors like pharmaceuticals, fertilizers,
IT, alternate energy, Nano-technology and environmental sciences”. 82

Traditionally both India and Former Soviet Union had close economic ties, and after
the disintegration of the USSR, there have been sustained efforts to promote mutual
economic ties. This is also evident from the agreements reached at the various summit
meetings. This is helped by various Inter-Governmental Commissions and also
various Committees set up for the purpose.

India-Russia Trade and mutual economic cooperation is seen as the most fragile of the
“vibrant bilateral partnership” between India and Russia. Bilateral trade turn-over
hovered around $2 billion for more than a decade till 2006 triggering all around
pessimism. But after 2007, India-Russia trade volume started increasing at a faster
pace. Registering a 30% increase, the bilateral trade reached $10 billion level in 2012.
Encouraged by the same, India and Russia realized the vast potential available for
expanding the volume of investment & trade between the two countries. Considering
the size of economy of the two countries; it was resolved to achieve a trade target of
US$20 billion by 2015. The figures may still be small amount as compared to the

82
Sharma, Rajeev, “Russia and India Report : Many important takeaways from 14th Indo-Russian
Summit”, October 22, 2013, http://in.rbth.com/politics/2013/10/22/many_important_ takeaways_
from_14th_indo-russian_summit_30299.html

66
projected trade figures of both countries with other trade partners, but still “it is
widely perceived by analysts as aspirational rather than realistic”. 83

India is the only country with which Russian trade witnesses a progressive structure
with share of machines and equipment growing very fast in its exports to our country.
Both India and Russia need to adopt necessary methods to diversify each other’s
export basket and change the trade structure. Of course there are a lot of avenues for
increasing our turnover which should be looked into seriously. To give boost to
economic ties, India and Russia concurred to work towards a “Comprehensive
Economic Partnership Agreement (CEPA)”. To study the related issues a Joint Study
Group has been set up.

---------------------

83
Foshko, Katherine, “Re-energising the India-Russia Relationship”, Gateway House, Mumbai, 2011,
p 53.

67
 2C - Strategic Relations

India-Russia bilateral relationship has been marked by deep compatibility and

convergence of opinions on all major issues. There is special place for Russia in
India’s foreign relations. Both the countries geopolitical interests have always had
much in common and both are optimistic about the future of strategic partnership.
This partnership is genuinely strategic in nature, and is based on many years of
evolution of fruitful relationship tested by time and dramatic events of historic
dimensions. This multifaceted relationship has created a special environment of faith
and mutual concordance between the two countries. It is very clear that India-Russia
strategic cooperation will endure well into the future as there are obvious long-term
interests between both the countries. The significance of this relationship is stressed
by the fact that both countries are world powers; and now also among the biggest
economies.

The high level of bilateral ties and wide scope of cooperation between India & Russia
make it possible to coordinate our activities in all directions, confirming the realistic
basis of the emerging “strategic partnership”. For both, Russia and India it is
necessary to keep developing close relations. This would undoubtedly contribute to
reinforcing stability and security in Asia as well as in rest of the world and ensuring a
“balanced multi-polar system” of international relations in the new millennium. India
and Russia have relished

close “strategic relations” during greater part of the “cold war era”. The relations were
all-inclusive and were the result of the “geostrategic and geopolitical alignments” that
ruled the cold war era. Since early 1947 itself, India and the erstwhile USSR had
joined hands for diplomatic mutuality in the domain and range of international
relations. India’s leadership role in Non-Alignment Movement in view of the
ideological rivalries between the US and the USSR was favourably looked upon by
the Soviet leadership. The USSR supported India’s policy of non-alignment which

68
fitted with the Soviet strategy of restricting US influence in the Afro-Asian regions.84
In June 1955, Prime-minister Jawaharlal Nehru paid first official visit to the USSR.
The relations started assuming a strategic character after Soviet leader Nikita
Khrushchev’s return visit in November 1955. New Delhi and Moscow began
meaningful defence cooperation in the early 1960s, which became a central element
of their growing strategic partnership subsequently. By the mid-1960s, Russian
military hardware supply to India surpassed that of the US. By the end of 1960s the
Soviet establishment was fully convinced that India was its most reliable and natural
partner in Asia. In conditions of India’s conflicts with Pakistan and China; and serious
deterioration of relations with the US, Moscow emerged as the natural choice for
India as the most reliable partner.

In August 1971, the “Indo-Soviet Treaty of Peace, Friendship and Cooperation” was
signed, which laid a strong legal and political foundation for strengthening the
productive bilateral cooperation in many vital sectors. Thanks to this treaty, the threat
of US and Chinese military intervention against India at the peak of the Indo-Pak
conflict in 1971 was neutralized. By the end of the 1970s, the Soviet Union met
almost 75% of India’s requirement in military hardware. By the end of the 1980s,
Indo-Soviet relations peaked in the political, economic, defence, cultural, scientific
and technical spheres; making it a special relationship. But thereafter a decline came
about, following the Soviet leader Mikhail Gorbachev’s ‘new political thinking’ and
‘de-ideologization’ of foreign policy.

With the disintegration of the Soviet Union, the successor state, Russian Federation
lost its status as “Super Power”. In the new developing geo-strategic environment,
Russia had to reconstitute its foreign policy required to adjust to the changing
environment. In the early 1990s, the Russian foreign policy went through drastic
transformation. There was obvious lean and slide towards the West, especially the

84
Kundu, Nivedita Das, “India’s Strategic Cooperation with Russia and its near abroad states”, India
Quarterly, Vol. LXIV, No. 4, 2008, p 73.

69
US; and that its top most choice. Therefore, during that period Russia started
following a “look west policy” and considering itself mainly as a European power and
forgot the territories of Asia in its foreign policy. Russia under President Yaltsin and
his foreign minister Kozyrev, in their attentiveness to de-idealize Russian foreign
policy attempted to re-orient towards west, by placing India and Pakistan at equal
footing even though Pakistan was a US ally during cold war. Russia weakened its
support to India on Kashmir, announced Kashmir a controversial territory, desired to
sell arms to Islamabad, shut down the supply of spare parts to the Indian army,
favoured Pakistan’s motion for de-nuclearization of South Asia, “attempted to annul
the deal for supplying cryogenic engines to New Delhi under US pressure; stalled
spare parts supply to the Indian army etc. thus delivering a heavy blow
to bilateral Relations”. 85

In the movement of implementation of its “Euro-centric foreign policy”, Russia lost

its old and trusted friends and was unable to find ant new reliable ally in the West. It
had already lost the “Super Power” status. As a result of the same, the newly oriented
Russian foreign policy was disliked by the Russian people. From mid-90s, there was
again a noticeable change in Russia’s foreign policy, when Primakov took over as the
foreign minister of Russia. Primakov was keen to establish good and cordial relations
with old friends such as India. He preferred “look east” policy known as “Eurasian
Orientation” by placing India as the first country in his priority list. He visited India in
March 1996 to re-energize diplomatic relations between India and Russia. In the
intervening time, India had also amended and modified its foreign policy to suit the
new international environment. However, both countries started discussing about
developing a “strategic partnership” towards the end of 1990s. But this remained on
low priority till President Putin visited India in 2000. During this visit, Delhi and
Moscow signed the “Strategic Partnership Declaration” that provided a solid
foundation to India Russia relationship in the succeeding period. The signing of the
“Declaration on Strategic Partnership”, and other agreements in different fields, raised

85
Mohanty, Arun, “Indo-Russian Strategic Partnership in the Twenty-first Century”, Indian Foreign
Affairs Journal, Vol. 5, No. 1, January-March 2010, pp 69-84.

70
India Russia relations to a higher and qualitatively new level in trade; defence;
economic; political, scientific & technological; & energy sectors. Since the Putin visit
in 2000, Annual summits between India & Russia have become an illustrating mark.
16 highly successful summits have been held in India & Russia alternately so far.

To assess the character as well as the intensity of this bilateral relationship, it will be
apt to deliberate on these aspects of the strategic partnership – “Defence Cooperation,
Political Cooperation, Cooperation in Science and Technology, Energy Cooperation,
Cultural and Cooperation in Economics and Trade”.

Defence Relations

India and Russia began a meaningful defence cooperation in the early 1960s, which
became central element of their growing strategic partnership subsequently. By the
mid-1960s Russian military hardware supplies to India, surpassed that of the US.
Changes in the global scenario as well as domestic political developments brought
corrections in the Soviet policy towards South Asia. By the end of 1960s, the Soviet
establishment was fully convinced that India was its most reliable and natural partner
in Asia. The USSR was consistently the key source of military hardware to fulfill
India’s defence requirements. Since the 1970s, “the Indian military has been
dominated by Russian equipment with the share of Russian origin hardware peaking
at 80% by the end of the Soviet period”. 86

India-Russia Defence Relations in Post-Cold War Period

In the initial period of 1990s, Indian army’s primary concern was the limited supply
of spare parts for the Soviet origin equipment. After the dependence on Soviet
produced military equipments for over 30 years, India reached on a position in which
Russia accounted for 70% of Indian Army military hardware, 80% of the aircrafts for
IAF and 85% of the Navy’s vessels. The breakup the Soviet Union disrupted India’s
prominent source of military supplies. Due to the lack of internal capability for

86
Foshko, Katherine, “Re-energising the India-Russia Relationship”, Gateway House, Mumbai, 2011,
p 33.

71
production of spare parts, India’s defence system faced an immediate trouble. Not
only production but shortage in supplies of spare parts also badly affected India’s
existing military weapon systems. All this created a lot of problems for India.

The major problem for India was the production, maintenance and up-gradation of
Soviet equipments. All this aggravated the situation, and India faced a terrible crisis.
Due to economic crisis and other difficulties, there was steep fall in the military
expenditure; and the arms deals by India with Russia. This “weakened the primary
bond that had united India and the Soviet Union during cold war”. 87

It became an extremely difficult task for India to coordinate supplies from the huge
military complex of the former Soviet Union, spread over 15 newly independent
countries. This situation imposed considerable logistic problems for India. India’s
domestic arms production was badly affected by the disruption in arms supplies from
the newly created independent states. The situation raised a question mark on the
India-Russia defence ties. By some experts, the reliability on Soviet Union and Russia
was described as a strategic fault.

The new Russian President, Boris Yeltsin, had a West-world focus and down played
Russia-India ties. The Yeltsin administration yielded to US pressure on non-
proliferation issue and curtailed its space launch cooperation with India, which US
analysts feared, was contributing to India’s ballistic missile capabilities. For instance,
Russia delayed transferring cryogenic (low temperature) “rocket engines”; and also
the technologies related to it, which the USSR had promised to assist India’s Outer
Space programme. The Russian government also urged India to join the “Nuclear
Non-proliferation Treaty (NPT)”; and in March 1992 applied “full-scope safeguard”
to future nuclear supply agreements with India; which constrained the latter’s use of
its “civilian nuclear power programme” to produce “fissile material for nuclear
weapons”.

87
Conley, Jerome M., “Indo-Russian Military and Nuclear Cooperation: Implications for US Security
Interests”, INSS, Occasional paper – 31, February 2000.

72
Moscow Regains Position as a Reliable Partner

The worrisome situation considerable improved when Yeltsin visited India in 1993. In
1994, Prime-Minister of India, Narasimha Rao, paid a return visit. A flurry of high-
level visits started taking place between the two countries, with a view to boosting
mutual defense cooperation. There were some positive moves. In 1998, though Russia
approved the United Nation’s Security Council’s denunciation of nuclear tests, but it
abstained from putting any restrictions against India. In spite of the pressure by US to
abandon the deal with India to build two light water reactors having capacity of
1000MW at Kudankulam, Russia went ahead to materialize the same. This
strengthened Russia’s position as a trusted friend and important source of highly
developed military equipment. In December 1998, Prime-Minister of Russia,
Primakov visited India. During this visit, both countries extended the “Long-Term
agreement on Military Technical Cooperation”. “The agreement envisaged shifting
the emphasis from buyer-seller relationship to the joint development of new
technologies”. 88

It needs to be underscored that this experience of breakup of former Soviet Union and
drying up of primary source of spares and equipment had a deep impact on Indian
security planners. As a result of these developments; India was forced to look
alternative sources which reduced the stake of Russian defense industry in India’s
arms market. Meanwhile Israeli defense industry and the European defense
companies captured the marketing space lost by Russia. 89

Despite the above concern, however, around the late nineties major defense sales from
Russia commenced once again. A major breakthrough was achieved in October 2000.
During the visit of President Putin at that time, a “Declaration on Strategic
Partnership” was signed. Many weapon deals amounting to US$3 billion were being
negotiated for some time without any result. These deal were also finalized during this
visit. The level of “The India-Russia Inter-Governmental Commission on Military-

88
Kumar, Satish (Ed), “India’s National Security Annual Review 2001”, article by Jyotsna Bakshi,
“India-Russia Military Relations”, Vikas Publishing House, New Delhi, 2002, p 99.
89
Kundu, Nivedita Das, “India Russia Strategic Partnership”, Academic Foundation, New Delhi, 2010,
p-28.

73
Technical Cooperation” was raised to the minister level, whereas earlier only defence
secretaries were involved.

Russian-Indian cooperation remains greatest in the defense sector. India has some
such “weapon-systems” from Russia, which have not been given by them to any other
country. The “defense cooperation” have been institutionalized in regular annual
meetings of the “India-Russia Inter-Governmental Commission on Military-Technical
Cooperation”. “Russia is the only country with which India has such an
institutionalized military cooperation mechanism at such a high level”. 90
The
Commission supervises implementation of the “10-year umbrella Inter-Governmental
Agreements on Military and Technical Cooperation”. The first agreement covered the
2001-2010 periods. In 2009, when Prime-minister Manmohan Singh visited Russia,
second one was signed to cover the period of from 2011to 2020.

Major Weapon Systems Purchased from Russia

According to Russian calculations, during the past four decades the total value of all
“Russian-Indian Military-Technical Cooperation” has surpassed $35 billion, “about
one-third of Russia’s total arms exports”. 91
Indeed, Russia’s arms sales to India
remain the most important element of their overall relationship. Bilateral defence ties
recovered from the problem filled 1990s, when the Indian military had difficulties
receiving adequate maintenance support and spare parts for its previous Soviet era
weapons purchase. USSR had an unrestrainedly funded “Military Industrial
Complex”. Dissolution of the USSR changed the equation. Russian defence industry
was handling the complexities created by the new situation. Hard currency was now
required “for arms transactions instead of the traditionally favourable soft terms
offered by New Delhi during the Soviet period”. In spite of these problems, Russia
remained the major source of most of the “advanced weapons systems” acquired by
India, even after dissolution of the Soviet Union. For example, approximately half of
the major surface combatants and two-thirds of the combat

90
Ministry of Defense, Government of India, Annual Report 2011-2012, 2012, p-195.
91
Weitz, Dr. Richards, “The Maturing of Russia-India Defence Relations”, JOURNAL OF DEFENCE
STUDIES, July 2012, Volume: 6, Issue: 3, pp 75-98 available at http://www.idsa.in /jds/6_3_ 2012_
TheMaturingofRussiaIndiaDefenceRelations_RichardWeitz

74
submarines in service with the Indian Navy were constructed in Russia or the Soviet
Union. Even many of the Indian-made ships are equipped with Russian-made
weapons systems such as “Ship-to-Ship” and “Surface-to-Air” missiles, guns,
torpedoes, and anti-submarine weapons. Furthermore, Russian companies receive
much revenue from servicing and upgrading India’s primarily Soviet-based military
hardware. 92

Even now the highly “advanced military systems” are procured by India from foreign
suppliers only, especially Russian companies. Some two-third of India’s defence
procurement budget is spent on foreign supplied weapons and services making India
93
the largest arms importer in the world. Indian defence firms have found it difficult
to “successfully make the transition from prototype achievements to the steady,
reliable production of large number of high tech or complex heavy weapons like Main
Battle Tanks, Missiles or Submarines for reliable operational use”. 94
Russia has
sought to meet Indian demands that Russia transfer more defence technologies to
India and engage with India in more joint research, development, and production of
new military systems.

The Indian Government initiated subsidizing the research and development of

“Indian version of the Sukhoi Su-30 (known as the Su-30MKI”, where “MKI”
stands for “Modernizirovannyi (modern), Kommercheskiy (commercial), Indiski
(Indian- produced)’. This is specifically done for the Indian Air Force and is one of
the world’s best air superiority fighters. India-Russia defence cooperation received a
new thrust during the tenure of President Vladimir Putin. He emphasized “the need
for redefining and reviving bilateral ties that had got lost following the collapse of the
Soviet Union”. Putin visited India in 2000. During the visit he stressed on “the
institutionalizing of defence and strategic cooperation between Moscow and New

92
Gorenburg, Dmitry, “India-Russia Defense Integration Is Likely To Endure”, russiamil. worldpress.
com/ 2011/ 01/07/india-russia-defense-integration-is likely-to-endure/
93
Kumar, Amit, ‘The Indian Navy Chief ’s Visit and Indo-Russian Defence Cooperation’, IDSA
Comment, July 29, 2011, available at http://www.idsa.in/idsacomments/ TheIndianNavyChiefs
VisitandIndoRussian Defence Cooperation_akumar_290711, accessed on June 29, 2012.
94
SIEFF, MARTIN, “BMD Focus: BrahMos progress -- Part 1”, Business news, March 6, 2008, http:/
/ www.upi.com/ Business_News/Security-Industry/ 2008/03/06/ BMD-Focus-BrahMos-progress-Part-
1/ U P I -87461204821925/

75
Delhi”. Indo-Russian relations attained a “qualitatively new character with enhanced
levels of cooperation taking place in almost all areas of bilateral relationship including
political, security, trade and economy, defence, science and technology, and
culture”.95 This was strengthened when the “Declaration on the India-Russia Strategic
Partnership” was signed in October 2000. According to the same, “Russia promised to
deliver military hardware worth $3 billion, including the delivery of 320 T-90 tanks,
96
SU-30 aircrafts, the Admiral Gorshkov, the INS aircraft carrier rechristened”.
Between 2002 and 2004, India got 32 twin-seated Su-30MKIs. The Indian
Government also bought a license from Sukhoi to manufacture 140 additional Su-
30MKI aircraft. Indian company, Hindustan Aeronautics Limited (HAL) is currently
manufacturing 222 Su-30 aircraft. As per plan, HAL was expected to deliver the “All-
Weather Air-Dominance Fighters” by 2015. In 2012, another deal was finalized
between India & Russia. The deal amounting to US$3 billion, was done to purchase
42 new Su-30MKI combat aircraft. 230 Sukhoi earlier were contracted earlier, and
this deal was in addition to that. “This will take the total number of
Su-30MKI fighters in the IAF to 272 over the next four to five years”. 97
This is the
“largest Russian arms export contract since the dissolution of the Soviet Union”. 98

The Indian Army purchased about two thousand numbers of “T-72” tanks and
hundreds of “BMP-1” and “BMP-2” armored vehicles from the Soviet Union.

India and Russia signed many important arms deals in 2004. The Indian Air Force
ordered three Russian-Israeli A-50EI Airborne Warning And Control System
(AWACS) aircraft for $1.1 billion that combined the “Russian II-76MD military
transport plane” with the “Israeli made Phalcon radar system”. Phalcons boost the
effectiveness of both offensive and defensive operation by enhanced detection of
fighters. To strengthen its radar capability Indian Air Force has ordered two additional
A-50EI AWACS, which can detect targets as far as 400 Km, worth $800 million

95
Scotts, David (ed.), “Handbook of India’s International Relations”, article by Sachdeva, Gulshan,
“India’s Relation with Russia”, Routledge, London, 2011, p-213.
96
Jain, B.M., “India and Russia: Re-assessing the Time-Tested Ties”, Pacific Affairs, vol. 76, no. 3,
Fall 2003, p-383.
97
Menon, Jay, “Su-30MKI Delivery To Indian Air Force Slips”, AVIATION WEEK, March 6, 2013
available at http:// aviation week.com/defense/su-30mki-delivery-indian-air-force-slips
98
Bogdanov, Konstantin, “India’s Arms Market: Everyone In, Nobody Out”, RIA Novosti, Russia &
India Report, March 30, 2012 available at http://en.ria.ru/analysis/20120330/172479402.html

76
 99
contract. India purchased 310 T-90S tanks in 2001 which were delivered in 2006.
This included off-the-shelf delivery of 120 tanks. 90 tanks were received in “semi-
knocked down kits” and were assembled in Avadi “Heavy Vehicles Factory” of the
Ministry of Defence. Remaining 100 were received in “completely-knocked down
kits”. Another “follow-on contract” amounting to US$800 million was signed in
October 2006. This included 330 “T-90M MBTs”, to be built with “locally-sourced
raw materials”. One more contract (3rd one, amounting to US$1.23 billion) signed in
December 2007, included for 347 “upgraded T-90Ms”. The bulk of these tanks were
to be “licensed-assembled” by “Heavy Vehicles Factory”. The final round of
successful “user-trials” for T-90Ms were completed in 2008, and it was “cleared for
100
series-production”. A substantial proportion of artillery and missile systems of the
Indian Army is of Soviet or Russian made, which includes “Tunguska and Shilka self-
propelled anti-aircraft guns”, “Smerch and grad multiple-rocket launchers”, and
“Surface-to-surface missile systems”.

The Indian military is one of the largest buyers of the “Russian Helicopters
Corporation”. Currently both, the Indian Air Force and the Indian Navy, operate
Russian made helicopters. In 2008, a contract was signed for 80 armed “Mi-17-V5s”.
In 2010, 59 “Mi-17-IV” transport helicopters were acquired. An agreement for further
supply of “80 Mi-17-V5s was signed in June 2011, with delivery anticipated over the
next five years”. 101

In December 2012, India signed one more contract to buy “71 Mi-17B5 Hip
helicopters worth $1.3 billion”. 102

A large number of “Russian weapons systems” have been purchased by India for
indigenously manufactured Indian Navy vessels. These include various types of “anti-

99
India set to buy additional Russian-Israeli AWACS planes, RIA Novosti, Russia & India Report,
November 9, 2011 available at http://en.ria.ru/military_news/ 20111109/ 168530024.html
100
India’s ‘Born Again’ T-90M MBT, Trishul Group, January 28, 2009, available at http://trishulgroup.
blogspot.in/2009/01/indias-born -again-t-90m-mbt.html
101
Gorenburg, Dmitry, “Russian Military Reform - An Enduring Partnership: Russian-Indian military
cooperation (Part 2: aircraft and ground forces)”, November 30, 2011, available at http://russiamil.
Word press.com tag /mig/
102
RIA Novosti, “India to Buy $3 Billion Worth of Russian Warplanes, Helicopters - Russia-India
partnership”, December 24, 2012, available at http://en.ria.ru/business/20121224/ 178368313.html

77
ship” and “surface-to-air” missiles, frigates, (Talwar stealth class), torpedoes, ASW
rocket launchers, and naval guns. In August 2010, Russia “officially transferred an
Akula-II class SSN to India, which will lease it for a ten year period at a cost of $25
million per year”. 103

India’s newest and biggest warship, the Aircraft carrier INS Vikramaditya (Admiral
Gorshkov) has joined the Indian Navy in November 2013. The 44,500 ton Indian
warship completed a painful process of renegotiations, price escalations, delays,
modifications and refurbishment, which lasted for nine years. This warship has the
capability to carry over thirty aircrafts. The aircrafts can be a combination of Sea
Harrier, Kamov 31, MIG 29K, Sea King, Kamov 28, ALH-Dhruva and Chetek
helicopters. This new carrier introduces many capabilities, which the Indian Navy did
not have so far. 104

In 2013, India made heavy defence purchases amounting to US$6 billion. In

December 2014, Russian president Vladimir Putin visited India for the annual
summit, the two countries reaffirmed the “long standing partnership between Russia
and India in the field of state of art weapons and increased diversified military
technical collaboration”. 105

India has purchased a large number of weapons from Russia over the years. Hence
Defence companies in Russia have great opportunity to supply spare parts required to
maintain these weapon systems. There will be more opportunities in future for
upgradation of the old weapons. In 2005 a US$250 million deal was signed for
upgradation of the engines of the MIG-29 fighters sold to the Indian Air Force earlier.
The contract allowed HAL to manufacture, under license production, 120 “RD-33
series-3 Jet engines” at its Koraput plant. This series-3 upgrade provides superior

103
Gorenburg, Dmitry, “Russian Military Reform - An Enduring Partnership: Russian-Indian military
cooperation (Part 1: naval cooperation)”, November 28, 2011, http://russiamil. wordpress.com
/2011/11/
104
Indian Navy, “News - About INS Vikramaditya - The newest & largest ship of Indian Navy”,
http://indiannavy.nic.in/news-events/about-ins-vikramaditya-newest-largest-ship-indian-navy
105
Upadhyay Dadan, “Major defence deals set to be signed during Putin-Modi summit”, Russia and
India Report, December 3, 2014.

78
 106
maneuver ability and improved performance in close air dogfight. Defence
Ministry of India signed a deal amounting to US$1 billion in 2008 with the MIG
Corporation, for modernization of the 60 to 70 MIG-29 fighters India purchased in
1980, to extend their service lives by several decades. Russia will give the planes with
more “advanced avionics”, new “multifunctional Zhuk-ME radars”, a new “weapon
control system”; and “improved engines”.

Joint venture

On one hand India purchases weapons and other defence equipment from Russia, and
on the other hand defence industries of both the countries are intending to go for a
range of “Joint projects”. The “Joint Venture” projects have yielded excellent results.
Some of such projects are as under:

1. BrahMos

In 1998, India & Russia signed the most prominent deal to jointly design, develop,
and manufacture “Supersonic Tactical Cruise Missile” by establishing a Joint
“BrahMos Aerospace”. “The BrahMos missiles incorporate advanced Russian
technologies, which Moscow has not made available to China or any other country
but built in India”. 107
The BrahMos missile can be launched from air, land and sea
platform. This would enable India to build a fast flying cruise missile with a speed of
about Mach 2.8 (more than 2000 miles per hour). The missile can sustain
conventional warhead of 300Kg and has 290 Km range. Targets from a very low
altitude, such as 10 meters, can be engaged by this missile. Tomahawk is a very high
tech US cruise missile and BrahMos is three times faster than it. This makes BrahMos
one of the fastest cruise missiles in the world.

The supersonic BrahMos cruise missile started to enter the armed forces of India in
2005. Land and sea trials have been successfully conducted. Test firing of “BrahMos

106
RIA Novosti, ‘Russia to Deliver Engines for Indian MiG Fighters’, August 21, 2008, available at
http://en.rian.ru/mlitary_news/20090821/155878138.html, accessed on June 29, 2012.
107
Sieff, Martin, ‘India Buys T-90s—Part 2’, UPI, January 16, 2008, available at http:// www. upi.
com/ Business_ News/Security-Industry/ 2008/01/16/Defense-Focus-India-buys-T-90s-Part2/UPI-
70451 2004 952 75, accessed on June 29, 2012.

79
supersonic cruise missile” from INS Kolkata, the latest stealth destroyer, in the
Arabian Sea by Indian Navy was successful. Two more warships (INS Kochi and INS
Chennai) like INS Kolkata are being equipped with the universal vertical launched
108
BrahMos missile system as their principal precision strike weapon. According to
the Director of BrahMos Aerospace, the Indian Air Force will start using the SU-30
MKI with BrahMos missiles in the year 2016. 109

The BrahMos is the only operational supersonic cruise missile in the world, and other
countries are making efforts to obtain such a missile. It is an example of what we can
achieve when we cooperate with each other. The BrahMos became operational in the
Indian Military in 2006. This would enable India & Russia to develop weaponry
required by Russia to get back the world power or super power status. A new variant,
the “BrahMos-II should be ready for flight tests by 2017, with a capability of flying at
higher speed of Mach 5 to Mach 7”. 110

2. Multirole Transport Aircraft

The success of BrahMos Aerospace Project provided the necessary impetus to both
sides to explore newer vistas for joint design and development of other military
hardware. A contract to develop 205 “Multirole Transport Aircraft (MTA)” was
signed in May 2012. “United Aircraft Corporation (UAC) Transport division” from
Russia and “Hindustan Aeronautics Limited (HAL)” from India agreed to form a Joint
Venture, in which both will invest $300 million each. Both the companies, along with
their joint venture firm, “Multirole Transport Aircraft Ltd (MTAL)”, signed the
venture deal. Out of 205, 45 planes will be given to “Indian Air Force”, and 100
planes to “Russian Air Force”. Balance 60 planed can be sold to other countries.
“Capable of flying a range of 2500 Km at a maximum speed of 800 Km/hour, MTA is

108
“Supersonic BrahMos successfully test-fired from INS Kolkata”, The Times of India, February 15,
2015 available at http://timesofindia.indiatimes.com/india/Supersonic-BrahMos-successfully-test-fired-
from-INS-Kolkata/articleshow/46248399.cms
109
“First test-launch of BrahMos missile from Indian Su-30MKI in March 2015”, Russia and India
Report, January 22, 2015 available at http://in.rbth.com/economics/2015/ 01/22/first_test-launch _of_
brahmos_ missile_ from_ indian_su-30mki_in_februa_40967
110
“BrahMos Aerospace to Develop First Prototype of BrahMos 2 Hypersonic Missile By 2017”,
Defence Now, available at http://www.defencenow.com/news/752/brahmos-aerospace-to-develop-first-
prototype-of-brahmos-2-hypersonic-missile-by-2017.html

80
officially expected to be test-flown in 2017 with a serial production due to begin in
2019”. 111
The Russian Air force will replace its Il-214 planes with new planes; and
Indian Air Force will replace its AN-32 planes, which Russian will upgrade “under a
separate contract worth almost $400 million”. 112
The joint venture also aims to sell
some planes for export. More worrisome, some Russian analyst doubt that it is still on
the drawing board, and only 2025 it may make its maiden flight. By that time the
project will become obsolete, “as MTAs major competitor Brazilian Embraer KC-390
has made significant progress in the development of the aircraft”. 113

3. The Fifth Generation Fighter Aircraft (FGFA)

The other major joint venture has been for developing a “Fifth Generation Fighter”,
the T-50 or its Indian designation, the “Fifth Generation Fighter Aircraft (FGFA)”.
This $35 billion project is designed to produce an aircraft analogous to the American
F-22 Raptor. India was invited to become a partner in the development of the FGFA
by Moscow in 2007, so that the Russian side could access both the Indian financial
clout and certain niche capabilities that India had to offer, but there was ambiguity on
“scope of work”. They were not clear who will develop what systems and
components. Consequently, a “general contract for the joint venture” was negotiated
from the “Inter-Government Agreement”. In 2010, a contract was signed. HAL thus
came on board with the Sukhoi Company. The two companies already had experience
of working together on the license production of the SU-30MKI. “Each side plans to
invest $6 billion to co-develop plane in the project”. 114
HAL will additionally be
responsible for designing the two seat version of the aircraft preferred by the Indian
side. The T-50 Fifth Generation Jet will be “highly stealthy and highly
maneuverable”. Its maximum velocity will go beyond 2000 Km/hour, it will have a
range up to 5000 Km. The deal requires “Russia to procure 200 Single-seat and 50

111
RIA Novosti, “Russia-India partnership - Russia, India Sign Multi-Role Transport Plane Deal”, May
30, 2012, http://en.ria.ru/business/20120530/173751557.html
112
Weitz, Richards, “The Maturing of Russia-India Defence Relations”, http:/ /idsa.in/ system/ files/
jds_ 6_3_ RichardWeitz.pdf
113
RIA Novosti, May 30, 2012, ibid
114
Shukla Ajai, “India, Russia to Ink gen-5 fighter pact”, Business Standard, September 11, 2010,
“http://www.business- standard.com/ article/ economy-policy/ india-russia -to-ink-gen-5-fighter-pact-
110 09 110 0058_1.html”

81
Twin-seat aircraft, while India purchases 50 Single-seat and 200 Twin-seat
aircrafts”.115 The T-50 Fifth Generation Fighter would be developed by 2016. 116

Challenges to India-Russia Defence Cooperation

Despite the historic strength, the defence relationship between India and Russia faces
a number of notable challenges.

On most of the occasions there has been inordinate delay in supplies from Russia.
Late receipt of the supplies makes them unreliable. Many times the parts have been
found to be defective and there have been repeated disputes over warrantees &
pricing. Non-availability of spare parts and maintenance support for Russian
equipment is also another point of dispute. It is mentioned that Indian negotiators
repeated failed to do their duty when contracts are being finalized. They could not
visualize the life-cycle requirements of the equipment, particularly considering the
higher wear & tear due to different climatic and operational conditions in our country.
It is also alleged that there has been lessor transparency with regards to cost and
quality of spare parts. Monopolistic approach of Russian suppliers has also caused
friction between us. When spare parts are provided, the equipment becomes unusable
and sometimes it has to be declared obsolete much before its life. In 2005, there are
instances of supplying “old repaired parts” by Russia, though order was placed for
new parts. There are other issues of “late deliveries” and “unexpected price hikes”.
For instance, “the relationship was marred by a scandal concerning T-90 tanks that
came from Russia without a missile firing system and with overheating problems”. 117
There were delays in the delivery of AWACS system by Russia, and this along with
Price disputes have been raised by India on various platforms.

115
Thornton Rod, “India-Russia Military Cooperation Which Way Forward?”, http:/ /idsa.in /system/
files/ jds_ 6_3_RodThornton.pdf
116
“New missile for Russian fifth-generation fighter to be developed by 2016”, Russia and India report,
May 23, 2014, “http://in.rbth.com/news/2014/05/23/new_missile_ for_russian_fifth-generation_ fighter
_ to _ be_ developed_ by_2016_35489.html”
117
Bakshi Jyotsna, “India-Russia Defence Cooperation”, Strategic Analysis, IDSA, June 2006,
available at idsa.in/system/files/ strategic analysis_ jbakshi_0606.pdf

82
The case of Soviet era aircraft carrier Admiral Gorshkov is the most notorious
example of strained Indo-Russian cooperation. The carrier was to be supplied to India
after refurbishing by Rosoboronexport, which is a Russian arms firm. The
negotiations went on for about 10 years, and finally the deal was signed in 2004.
Under the terms of the deal amounting to US$ 1.5 billion the carrier was to be
supplied to Indian Navy along with a complement of warplanes. These include
“single-seat MIG-29K and two-seat MIG-29KUB fighters as well as Ka-27 Helix-A
and Ka-31 Helix-B anti-submarine helicopters”. 118
During the course of refit, the
Russian side escalated the cost of the vessel to $2.3 billion, citing unforeseen costs
towards repairs. India & Russia again went through long & tough bargaining to re-fix
the terms of the contract. During the 2010 visit of President Putin to India, the price
was fixed at US$2.34 billion. As a result of the renegotiated deal, the ship was set for
sea trials in September 2012. The big setback came when during sea trials, the
insulation of the boiler failed and defects emerged in boilers. The carrier could not
reach the top speed and had to be sent to shipyard again. After the rectification of the
fault with boiler, the ship again had to undergo sea trials. The final round of these
trials to test all systems was conducted in July 2013. Finally, on 16th November 2013
119
the Gorshkov (INS Vikramaditya) was handed over to the India Navy. India has
renamed the ship ‘INS Vikramaditya’. It will replace India’s British-made INS Viraat
carrier, which is barely sea worthy having served in the Indian Navy for 50 years.

India’s military establishment has expressed concerns about the quality and delay in
delivery of Russian naval purchases. For example, they have objected to the lengthy
time it has taken Russian shipbuilders to deliver some multi-role frigates and to
upgrade the Indian Navy’s fleet of Kilo class diesel submarines, originally purchased
from Russia from 1986 to 2000. Another challenge in the relationship has been the
failure of the Russian MIG-35 to survive even the first round of the multi-billion
dollar competition, in which India was to buy 126 “Medium Multi-role Combat

118
“Russia to start supplying MiG-29K fighters to India in May”, RIA Novosti, March 14, 2008,
available at http://en.ria.ru/world/20080314/101340254.html
119
Pubby Manu, “Russian-built aircraft carrier INS Vikramaditya ready to sail, finally”, Indian
Express, November 25, 2013, available at “http://archive.indianexpress.com/news/ russianbuilt-aircraft-
carrier-ins-vikramaditya-ready-to-sail-finally/1140744/”

83
Aircraft (MMRCA)”. This tender, dubbed the combat aviation contracts in history,
was one of the most lucrative procurement aviation contracts worth an estimated $ 10-
12 billion. 120

In January 2011, the Indian Government announced the Dassault Rafale had won the
competition. The official Russian reaction to the bid loss demonstrated the insecurity
felt among the country’s leadership about Russia’s formerly solid position as India’s
primary defence supplier. Indian analysts speculated that the subsequent Russian
decision to cancel the April 2011 INDRA Joint Naval exercise at the last minute could
have been aimed to express “Russia’s displeasure at India ruling out the MIG-35 in
the race for MMRCA contract”. 121
The Indian warships had already arrived at the
port of Vladivostok, the headquarters of the Russian Pacific fleet and the site of the
planned exercise, when they received word that the Russian ships were preoccupied
with the relief and recovery operations in Japan, which had been struck by a
devastating earthquake and Tsunami. 122 In 2011, the Indian Defence Ministry bought
the US AH-64D Apache Longbow Attack Helicopters rather than the competing
Russian made Mi-28N Night Hunter Attack Helicopter. 123

The explosion on a submarine in August 2013, has also caused strain in the
relationship of the two countries. A diesel-electric submarine, named the INS
Sindhurakshak purchased by Indian Navy from Russia, exploded and sank in Mumbai
killing 18 sailors. The loss of INS Sindhurakshak adversely affected the Indian Navy,
bringing the fleet strength of Indian submarines down to thirteen. 124

120
Richard Weitz, “The Maturing of Russia-India Defence Relations”, Journal of Defence Studies,
Vol-6, Issue-3, 2012, pp- 75-98
121
Kumar Amit, “The Indian Navy Chief’s Visit and Indo-Russian Defence Cooperation”, IDSA
Comment, July 29, 2011, http://www.idsa.in/idsacomments/TheIndianNavy Chiefs Visit
andIndoRussian Defence Cooperation_ akumar_290711%20.html
122
Ramachandran Sudha, “'Snub' just a snag in Russia-India ties”, Asia Times, South Asia, June 8,
2011, available at http://www.atimes.com/atimes/South_Asia/ MF08Df01.html
123
“Russia loses $600 million Indian attack helicopter tender”, RIA Novosti, October25, 2011,
available at http:// en.ria.ru/world/20111025/168096811.html
124
Sharma Rajeev, “INS Sindhurakshak sunk in Mumbai naval dockyard after explosion”, Russia &
India Report, August 14, 2013, available at http://in.rbth.com/economics/2013/08/14/ ins_ Sindhu
rakshak_ sunk_ in_mumbai_naval_dockyard_after_explosion_28441.html

84
In 2012, India was to purchase about 15 heavy-lift helicopters and 22 Combat
helicopters. The Russian firm, “Mil Moscow Helicopter plant, a unit of Oboronprom”
lost bids amounting to $2.4 billion to Boeing Company. In another contract worth $ 1
billion for supply of “aerial refueling planes”, Russia lost out to a European firm
EADS (EAP.PA). Moreover, it was decided by the Indian Air Force decided that
“Russian II-76” having a capacity of 40 tonnes, may be replaced with “American C-
17” having higher capacity of carrying 70 tonnes. Defence experts say that Russia has
repeatedly lost in the recent past to get orders from Indian Military, total amounting
up to $13 billion.

Despite all the trials and tribulations, India does need to maintain close military
cooperation with Russia. There are challenges in our bilateral relations and these
should be treated as warning signs, as the same these can be turned into opportunities.
India has a lot of Russian and Soviet defence equipment, and it will always need spare
parts for the same. However, the scenario for fresh purchases may be different and
Russia will face difficulties in that area. Though for maintenance needs India cannot
ignore Russia as it requires Russian spare parts. Otherwise also Russia always offers
“cutting-edge” technology at a very low cost, particularly in Aeronautics. Hence for
this reason also India cannot ignore Russia. Thirdly, Russia is always willing to
transfer technology and go for joint ventures with Indian companies.

There is no doubt that military-technical cooperation remains a ‘pillar’ of India-

Russia bilateral relations. In terms of defence procurement relationship, while no
doubt Russia will remain the main associate for India in the near future. The Russians
will have to compete with other countries to get orders. It has to compete with the
West & Israel; and even with fast developing Indian industry. As it goes about broad
basing its defence procurement and creating indigenous capabilities. Except for some
high technology items, the defence market is dominated by the buyers, and India is
one of the largest buyers at present.

85
 Scientific and Technological Cooperation

Cooperation in Science & Technology with Soviet Union, and now Russia, has
always been considered as a matter of primary importance for our bilateral relations.
Various institutions were set up with the help and aid of the Soviet Union, to develop
India’s infrastructure. Many Research Centres as well as Laboratories were
established in India by active cooperation of the USSR with Scientific Groups in
India. These include “Indian Institute of Technology in Bombay (now Mumbai);
Indian R&D Institutes of petroleum at Dehradun and Ahmedabad; Technical College
of Metallurgy in Ranchi; Petroleum in Baroda; Heavy Engineering in Bhopal; and
Radio Engineering at Hyderabad”. Various facilities created with Soviet aid have
“personnel training centers” in them for creating a trained work force.

Many research facilities have been created in independent India in various disciplines
of science. India Russia bilateral relations in science and technology received a boost
due to these facilities. India & Soviet Union signed The “Integrated Long Term
programme (ILTP)” in 1987. In 1992, it was changed from “Indo-Soviet ILTP” to
“Indo-Russian ILTP”. The Indo-Russian ILTP is by far the largest cooperation
between any two countries in this sphere. It was renewed in 1994 and once again in
2010. The ILTP includes work in agriculture science, meteorology, construction
material, standardization, metrology and certification, oceanology, biotechnology,
medical science, commercialization and technology transfer; and seismology. “The
ILTP is coordinated by the Indian Department of Science and Technology ; and by the
Russian Academy of Science and the Russian Ministry of Industry & Science and
Technology”. 125

The “Declaration on Strategic Partnership” signed in October 2000, reiterated goals of

enhanced cooperation within the framework of the “India-Russia Inter-Governmental
Commission (IRIGC) for Trade, Economic, Scientific, Technological and Cultural

125
Foshko, Katherine Tsan, “Re-Energizing the Indian-Russian Relationship: Opportunities and
Challenges for the 21st Century”, Jindal Journal of International Affairs, VOLUME 2, ISSUE 1,
August 2012, pp 140-184 available at “http:// www.jsia. edu.in/ JJIA/PDF/Katherine-Re-
Energizing.pdf”

86
Cooperation”. Under IRIGC, 12 working groups for different areas were set up.
During the visit by B. S. Rawat, India’s Minister of State for Science and Technology,
to Russia in May 2001, the Memorandum of Understanding (MoU) was signed on
Science and Technological Cooperation. Under the MoU, both countries emphasized
to push forward with “industrial applications in ongoing areas of cooperation with
Siberian scientists – laser technology, catalysts, high purity material, accelerators and
heat physics”. 126
The delegations from both countries deliberated on means of
enhancing cooperation in the field of Aviation, Hydrocarbons, and composite material
technologies. They reached an “agreement to set up a joint venture to convert jet
engines for power production”. 127 In November 2003, a MoU for setting up of “Indo-
Russian Centre for Earthquake Research” has been signed under ILTP. To identify
and Implement Joint projects, there has been continuous discussions and
communication amongst scientists from Russia & India, so that both can benefit from
it. By 2003, the “ILTP is credited with about 3000 exchange visits from both
countries, 300 completed joint research projects and establishment of 6 joint research
centers in important areas if science”. 128

India and Russia have been active in pushing their scientific and technological
cooperation forward. In 2005, agreement was signed for cooperation in “Solar Physics
and Solar Terrestrial Relationship” with in the framework of the “Coronas-Photon
Project”. In 2007, an Association between the “Department of Science and
Technology (DST)” from Indian side and the “Russian Foundation of Basic Research
(RFBR)” was set up. The purpose of the same was to provide funds for seminars &
joint research projects in the area of Basic Science including Physics and Astronomy;
Mechanics and Informatics; Mathematics; Chemistry; Earth Sciences;
Telecommunications and Computer Sciences; Biology and Medical Sciences; and
Fundamentals of Engineering Sciences. By March 2013, the “association of DST-
RFBR has launched 100 projects ever since; and about 20 joint workshops have been

126
Vladimir Radyuhim, “India signs MoU with Russian regions on S&T”, The Hindu, May 23, 2001.
127
Ibid.
128
Dash, P.L. & Nazarkin, Andrei M., “Indo-Russian Diplomatic Relations, Sixty Years of Enduring
Legacy”, article by A. M. Katre, “ Indo-Russian Cooperation in Science and Technology: Retrospect
and Prospect”, Academic Excellence, Delhi, 2008, pp 12-26.

87
organized”. 129
Many agreements were signed in 2010, covering almost all spheres of
life, such as setting up joint ventures; capacity building in disaster forecasting and
emergency management; Information Technology and IT-enabled services; exchange
of Technology in Pharmaceuticals and Bio-pharmaceuticals; and other agreements on
joint Research and Development in high innovation. The department’s official report
for 2011-2012, states that “over 100 joint R&D projects were supported during the
years, in areas covering basic and applied sciences”. 130

The 14th annual summit was held in October 2013 in Moscow. Both Dr. Manmohan
Singh and President Putin welcomed the new mechanism, created by the “Russian
Ministry of Education and Science” and the “Indian Ministry of Science
and Technology”. The new mechanism will support joint R&D projects, having a
potential for generating “Intellectual Property” and having possibility of “technology
development”. These joint India-Russia R&D projects would be under the programme
“Research and Development in Priority fields of Science and Technology Complex of
Russia in 2014-2020”. 131

As per Government of India, the joint efforts have yielded following

accomplishments: Development of lasers for industrial and medical purpose, Design
of Light Transport Aircraft (LTA) ‘SARAS DUET’, Development of porous silicon
luminescent devices and detectors, Development of 10MeV Linear Accelerators
(LINAC) for industrial radiation application and the “integration of Russian Seismic
Sensors with Indian digital recorders and stationing them at various IMD (Indian
Meteorological Department) sites for field observations”. 132

Cooperation in the field of Science and Technology between India & Russia goes on
at ”long-standing and productive research centers”. The first major achievement under
the ILTP was the establishment of “Advanced Research Center for Power metallurgy

129
Gera, Priyanka, “Science and Technology Cooperation to grow between India and Russia”, March
12, 2013, Russia India Report available at “http://in.rbth.com/ economics/ 2013/ 03/12/ science_ and_
techno logy_ cooperation_to_grow_between_india_and_russia_22837.html”
130
Ibid.
131
Alexander Korablinov, “14th annual summit: Singh, Putin focus on trade, energy and defence”,
Russia & India Report, October 21, 2013.
132
“A Brief Background on Indo-Russian Cooperation in Science & Technology”, department of
Science & Technology, available at www.dst.gov.in/inter-russia.pdf

88
and New Materials” at Hyderabad which is operational since 1995. ARCI is a R&D
center under Indian Department of Science and Technology, has been established “for
creation of unique technologies and application oriented programmes in the area of
advanced material with technology transfer to Indian industries”. 133

One more achievement is the establishment of “Russian-Indian Center for Advanced

Computing Research (RICCR)” in Moscow in 2001, for carrying out joint research in
computer programming, “particularly in relation to seismology and weather
economics”. The RICCI has “a network of powerful parallel computers such
PARAM-10000, developed by the Pune-based Center for Development of Advanced
134
Computing (C-DAC)”. C-DAC has developed many computer applications with
the use of PARAM series of computers. These applications are used for “weather
forecasting; seismic data processing”. Some applications are related to space.
Applications related to Biotechnology, Chemistry and Physics have also been
developed. Various business applications used in Insurance, Banking, Financial
modelling, Telecom and E-governance are also developed there.

In 2001, one more prestigious joint venture, “Indo-Russian Center for

Biotechnology”, was established at the IIT campus in Allahabad. Biotechnology is a
field of biology having applications in “engineering, technology, informatics and
medicine”. This center coordinates research related to Biotechnology and carries out
collaborative activities related to the field. Areas of mutual interest are identified, and
research is done in those areas. One such area is “plant and medical biotechnology”,
specially related to “potato, sunflower and wheat for abiotic/ biotic stresses”. This
research is used for increasing agricultural production. This field is a “strategic
objective” for India. Another area is “pharmaceuticals”, which forms a substantial
part of Indian exports to Russia. India & Russia signed “Biotic Network agreement”.
This provides “online system” for “database support, online seminars, placements,
exchange programs, and faculty visits”.

133
ARCI, www.arci.res.in
134
Gera, Priyanka, ibid.

89
Polio vaccine is manufactured by India on industrial scale, where technology
developed by the “Institute of Poliomyelitis and Viral Encephalitis of the Russian
Academic Medical Science” is used. Russia has helped India in developing “new
generation immune-modulator”. They have set up a specialized anti-tuberculosis
center using the Russian laser system. There is also “cooperation among
medical personnel in studying and applying Ayurveda methods and joint research
in immunology, epidemiology, bio-physics, oncology, endocrinology and
cardiology”.135

Nanotechnology has become the most rapidly upcoming technology of this Century.
Therefore, many companies and industry sectors are taking keen interest to create
innovative technologies to sustain themselves for this new challenge. The
governments of two countries are also taking interest in nanotechnology, “a
pioneering science of manipulation of matter on an atomic and molecular level”,
which can be used in medicine, commerce, and industry. Russia alone has invested
about US$ 3.25 billion on nanotechnology during the period of 2008-2010, “making it
the fourth largest investor in nanotechnology after United States, Germany and
Japan”. 136
Similarly, India is also investing in this field. In spite of having
“nanotechnology parks” in Hyderabad and Bengaluru since 2007, India has been
facing problems in actual production of goods, due to lot of already existing patents.

In 2011, India explored the possibility of establishing India-Russia Joint Venture

Company in Russia to manufacture some of the main components needed for solar
energy equipments. It was discussed by the officials of Indian “Department of Science
and Technology (DST)” with their counterparts in “RUSNANO, the nanotechnology

135
Stobden P. (ed), “India-Russia Strategic Partnership: Common Perspectives”, article by Shaumyan
Tatiana,“Russian-Indian Bilateral Cooperation”, INSTITUTE FOR DEFENCE STUDIES AND
ANALYSES, 2010, p154
136
Foshko, Katherine Tsan, “Re-Energizing the Indian-Russian Relationship: Opportunities and
Challenges for the 21st Century”, Jindal Journal of International Affairs, VOLUME 2, ISSUE 1,
August 2012, pp 140-184 available at http://www.jsia. edu.in/ JJIA/PDF/Katherine-Re-Energizing.pdf

90
initiative of the Russian government”. The search was also on for other “Indian
partners to collaborate with the Russian Organisation”. 137

Use of nanotechnology in creation of new weapon systems is actively attempted in

defence establishments of both countries. India is concentrating its efforts to use
nanotechnology for creation of new methods of diagnosis and treatment which may
cure diseases such as cancer. India is also interested to use nanotechnology for water
purification systems.

Space Cooperation

Space has been the most successful area of India Russia Cooperation. India & Russia
has been conventionally collaborating in the field of aerospace for many years, and
they agree to multiply their cooperation in the field. Over the years, Space Programme
in India has been carried out with the help of high technology from the USSR.
Carrying forward this traditional cooperation, Russia & India have undertaken
numerous “high-technology space projects” under the “2004 Inter-Governmental
Agreement on Cooperation in the area of exploration and use of outer space for
peaceful purposes”. The Unmanned Lunar Probe launched by India in 2008, name as
Chandrayaan-I, was jointly developed by the “Indian Space Research Organization
(ISRO)” and the “Russian Federal Space Agency (RFSA or Roscosmos). Russia &
India are now working “Chandrayaan-2 project”, a follow up project of the earlier one
that will have the moon orbiter, lander and rover module. Development work will be
done partly by India and partly by Russia. As per agreement between ISRO and
Roscosmos, India will be developing two modules, the moon orbiter and rover, and
Russia will develop the third module called moon lander. Discussions between
scientists of two countries have taken place to decide on “various interfaces and
mission related operations”. Chandrayaan-2, India’s 2nd moon mission is expected to
be launched by 2016 or 2017.138 Russia has also been helping India since 2008, in
developing the “Human Space Flight Project (HSP)”. This project is of “key strategic
137
“Solar photo-voltaic cells: Joint venture planned in Russia”, The Hindu Business Line, February 20,
2011 available at http://www.thehindubusinessline.com/government-and-policy/solar-photovoltaic-
cells-joint-venture-planned-in-russia/article1475067.ece
138
India to Launch Chandrayaan-2 by 2017, The Hindu, January10, 2014.

91
priority” for India, in which crew will be carried to low Earth Orbit. Since 2007, India
& Russia have also been collaborating on the developing “Youthsat”. On 20 th April
2011, the “jointly developed Indian-Russian Student Satellite (Youthsat) was
successfully launched by India on a PSLV rocket”. 139
Information regarding solar
flares and their influence on upper atmosphere of the Earth will be collected by this
spacecraft. Youthsat is a joint Indo-Russian atmospheric satellite mission with the
participation of students from universities to motivate the younger generation towards
space research. Russia has expertise in this area; and moreover they are willing to
share technology with India. This help has stimulated the indigenous space
programme of India.

In 2004, when Russian President Putin visited India, a space related agreement was
signed by the two countries. This agreement was on “Cooperation in the Russian
Satellite Navigation System – GLONASS”. Later on, many “follow up agreements on
GLONASS” have been signed. The ongoing cooperation in Russia’s GLONASS
project includes “joint development of satellites, launch of satellites, and joint
manufacture of satellite navigation equipment for civilian user”. 140 As per the
agreement GLONASS Satellite will be launched with “GSLV Launch Vehicle of
India”, and signals from the GLONASS system shall be available for use by India.
The “Russian GLONASS” satellite network is similar to the “US Global Positioning
System (GPS)”. These systems provide real time positioning and speed of the objects
on surface, on sea; as well as airborne objects.

India has interest in GLONASS for its use in military equipment also. A large part of
India’s military hardware has been purchased from Russia, and hence for navigation
GLONASS would be more compatible with it. Keeping this in view, India would like
to have greater stakes in GLONASS. In December 2011, the two countries signed a
deal “for receiving precision signals from GLONASS, which would allow missiles,
including those fired from nuclear submarine Chakra, to strike with in a meter of

139
Sharma Rajeev, “Indo-Russian Inter-Governmental Commission to meet in mid-October”, Russia &
India Report, September 26, 2012 available at http://in.rbth.com/articles/2012/09/26/indo-russian_inter-
governmental_commission_ to_meet_in_mid-october_17907.html
140
Nanda Prakash, “A Time-tested Partnership Debate – India, Russia and the shift in Global Balance
of power”, Foreign Affairs Journal, Vol. 5, No, 3, July-September 2010.

92
distant targets”. 141 India has been using GLONASS technology for the last few years.
When GLONASS opened its showroom in Mumbai in September 2012, its Deputy
Chief Designer Igor Kuzetsov stated that “Indian citizens were already unknowingly
using the Russian technology. The iPhone 4S supports GLONASS technology”. 142

Cooperation between Russia and India in private sector received a boost on July 16,
2014 when an agreement for the manufacture of two space satellite was signed
between Dauria Aerospace and Bangalore-based Aniara Communications. “Dauria
Aerospace” is a “multinational aerospace company”. This company develops small
satellite constellations and provides global satellite based remote sensing information
service to its clients. By using lower cost satellite and higher performance satellites,
the company provides Earth imaging data and communication services directly to its
customers. Aniara supports global telecommunication and high technology
enterprises. It has offices in the US and Bangalore. According to Aniara president
Raghu Das, “Small satellites are an ideal solution if there is the lack of the needed
volumes of satellite communication and broadcasting that India has at present”. 143

Roscosmos, the space agency of Russia, is looking up to establish a joint venture with
India to produce equipments for GLONASS. In addition to placing ground stations in
the country, Roscosmos is also planning fourth GLONASS navigation equipment
being manufactured in India.144 GLONASS has total of 29 satellites in orbit. Out of
them 24 are active and provide global coverage. 4 satellites act as backups; and the
remaining one undergoes test flights. In addition to using the GLONASS services for
the past few years, India is now developing its own “Indian Regional Satellite
Navigation System (IRNSS)”. It will have a “constellation of 7 satellites which will

141
Sharma, Rajeev, “Space Pacts to put Indo-Russian ties in still higher orbit”, Russia & India Report,
December 6, 2012 available at “http://in.rbth.com/articles/2012/12/06/ space_pacts_to_put_indo-
russian_ ties_ in_still_higher_orbit_19591.html”
142
Korablinov Alexander, “Russia planning to place three GLONASS ground stations in India”, Russia
& India Report, May 28, 2014, available at http://in.rbth.com/economics/2014/05/28/russia_ planning_
to_ place_ three_ glonass_ground_stations_in_india_35583.html
143
ITAR-TASS, “Two space satellites for India to be made in Russia”, July 18, 2014, available at
http:// in. rbth. com/economics/2014/07/18/two_space_satellites_for_ india_to_be_made_in_ russia_
36783.html
144
Korablinov Alexander, “Russia planning to place three GLONASS ground stations in India”, ibid.

93
be placed in the geostationary orbit to give maximum coverage of India and its
neighbours”. 145

Space cooperation between India & Russia has been continuing by establishing Joint
Ventures. This arrangement has provided numerous prospects for future space
projects. Both India & Russia should work collectively for “deep space mission” and
the “Mars mission”. This could provide a “significant step in space and technological
cooperation”.

Nuclear Cooperation

Collaboration between India & Russia in the Nuclear field has been continuing for
long. After independence India entered into nuclear cooperation agreements with
many countries, both for research and development efforts and supply of materials. In
respect of nuclear cooperation on material transfer, India entered into an agreement
with USA in August 1963 for the supply and construction of a nuclear power plant
(two units of 220MWe each, at Tarapur), followed by a similar agreement with
Canada in December 1963 for the supply of two Pressurized Heavy Water Reactors
(PHWRs) at Rajasthan Atomic Power Station (RAPS) each with a capacity of 220
MWe. 146

However, subsequent to the first Indian nuclear test in 1974, Indo-US and Indo-
Canadian nuclear cooperation came to an end. For the running of the two nuclear
reactors, India signed nuclear supply agreements with USSR in September 1976.
Before the break up of the USSR, a “nuclear cooperation deal” was signed by India
and Soviet Union in 1988. This deal was updated in 1997. The deal was extended
with other agreements like the “2002 agreement for the construction of the nuclear
reactors” by Russia at Kudankulam, Tamil Nadu.

145
Kandelwal Deepanshu, “Russia may soon establish 3 GLONASS ground stations in India”,
available at http://thetechportal.in/2014/05/30/russia-may-soon-establish-3-glonass-ground-stations-in-
india/
146
Kundu, Nivedita Das, Ibid, p 66.

94
In response to India’s testing a nuclear explosive device in 1974, the exporters of
nuclear related goods established the Nuclear Suppliers Group (NSG) with the aim of
holding nuclear proliferation in check. As India is neither a member of NSG nor did it
agree for comprehensive safeguard to be implemented in its nuclear industry, India’s
nuclear cooperation with other nations and particularly with NSG member countries
came to an end. NSG guidelines restricted any nuclear trade with India for (33) thirty
three years, while India did not sign the “Nuclear Non-Proliferation Treaty (NPT)”, as
it never wanted to risk its weapon programme. This state of affairs dramatically
changed on 6 September 2008, when NSG permitted its member states for “civil
nuclear cooperation” with India. Following it, there was a dramatic change in US
stance. Indian isolation ended when US signed the “2008 civil nuclear agreement”
with India. This provided India an opportunity for more cooperation from the West
also. After the US, Russia & France signed nuclear deals with India. One purpose of
the “Indo-US nuclear deal” was to improve the Indo-US relations and to remove
distrust of the Cold War period. This removed hurdles in the way of integration
between India and rest of the nuclear countries. US wanted to have better relations
with the “emerging Asian power”, exploit the markets provided by growing India, and
“tie up India within evolving global structures superintended by the west”. 147
After
this agreement, India acquired a lot of nuclear technology as well as nuclear fuel as
part of its its energy strategy. Civil Nuclear Deals were signed by India with UK,
Russia, Canada, France, South Korea, Argentina & Kazakhstan. Russia actually had
cooperated with India in nuclear sphere even before it was legitimized by the NSG.
Russia supplied 58 Tons of low enriched Uranium fuel pellet in 2001. In 2006, Russia
supplied “60 Tons of Uranium fuel for the Tarapur Atomic Power Station (TAPS)
under the safety exception clause of the NSG guidelines in spite of US opposition”.148

The Russian officials made it clear that the supply of n-fuel to India did not violate
any international obligations. When President Putin visited India in January 2001,
India and Russia signed a MoI (Memorandum of Interest) between “Department of
Atomic Energy (India)” and “Federal Atomic Energy Agency (Russia)” for

Sibal Kanwal, “India’s Relations with the US and Russia,” Force, June 13, 2011, p. 3.
147
148
Jain, B.M., “Global Power: India's Foreign Policy, 1947-2006”, Lexington books, Lanham, MD,
2008, pp 109-133

95
construction of additional nuclear power plant units at Kudankulam (Tamil Nadu). As
part of this more sites in India were to be identified for installation of nuclear power
plants of Russian design. The original Kudankulam agreement was signed in 1988,
and Russia went ahead with the agreement for the two reactors even though it came
under some criticism from other NSG members for allegedly breaking the NSG
guidelines. Russia, however, stood its ground and justified the supply as predating the
NSG agreement.

Mutual interest of Russia and India in nuclear cooperation was clearly expressed by
the leaders of both the countries during, when President Medvedev visited India from
4th to 5th December 2008. Medvedev emphasized Russia’s willingness to move to
deeper relations with India; and also emphasized that “the strategic partnership
between India and Russia can establish a base for the Indian economy’s overall
development and for supplying it with electricity using the production possibilities
which the nuclear power plants offer”. Since then Russia has been participating in
setting up four more nuclear reactors at Kudankulam. The first unit of Russian built
“Kudankulam Nuclear Power Plant (KNPP)” is now generating 100% of its capacity
of 1000MW of power. KNPP is the first pressurized water reactor that belongs to the
light water reactor category in India.149 Unit-2 is expected to be commissioned
shortly. Russia has secured its place as India’s top nuclear energy supplier. The
Technology & Design of Kudankulam project are its unique features. The impact of
this project on Indian Atomic Reactor design technology is an excellent aspect of
Indo-Russian Cooperation in the strategic area. It is relevant to mention here that
strong pressures were built on Russia, by the US and other nuclear weapon powers, so
that Kudankulam project is not implemented. These pressures were built by the
“London club” and Russia is also a member of the club. The Russian contract price
for this technology and reactor is also significantly competitive. In the process of
building reactors in India, Russia seems to be eager and willing to share technical
information. This sharing also leads to better bargains for India. For instance, the

149
Korablinov Alexander, “Kudankulam-1 reaches 100 percent capacity, focus now on unit 2”, Russia
& India Report, June 9, 2014, available at http://in.rbth.com/economics/ 2014/06/09/kudankulam-1_
reaches_ 100_percent_capacity_focus_now_on_unit_2_35847.html

96
market price of one nuclear unit of the type that is being built in Kudankulam is $2
billion, but India get a 30% discount, as Russia only supplies the equipment while
building, construction and assembly are done by Indian workers. Russia is also
planning to keep supplying the plant with fuel throughout its life – the cost of that is
comparable to the cost of building the plant. In 2009, “TVEL Corporation, a
subsidiary of Russia’s Atomenergopram (Nuclear Energy Power Corporation) has
signed contracts for the supply of 2000 Tons of Uranium pellets worth $700 million to
India’s nuclear reactors”.150 This willingness to share technological information with
India can be illustrated by the fact that only about 80 Russian personnel are working
on the site in Kudankulam, while about 2000 Russian personnel are working on the
site of a similar Tianwan project in China.151 This approach gives opportunity to train
and develop a skilled work force in India.

The Russian approach towards transfer of know how sharply contrasts with that of
USA. The U.S. does not want the client to have access to cote high technologies.
They would like to supply the equipment as part of turnkey project, and even would
like to get involved in the operation of the facility along with the client. This is called
“black box approach”. “The intent is to lessen an importer's access to the underlying
technologies and, thereby, the possibility that the technology might be replicated or
reverse engineered for other purposes”. 152 However, Russia is also not willing to give
India access to the latest enrichment and reprocessing technology (ENR). As per a top
Russian official, “Russia is a signatory to the Nuclear Non-Proliferation Treaty and it
intends to comply with its provisions. The transfer of ENR technology will be
restrained to countries that want to develop this sensitive technology”. In 2011,
Nuclear Suppliers Group (NSG) stiffened the rules for the transfer of ENR technology
to “non-NPT signatories, of which India is one”. 153

150
“India, Russia ink $700-mn nuclear fuel pact”, Business Standard, February 12, 2009 available at
http:// www.business-standard.com/ article/economy-policy/ india-russia-ink-700-mn-nuclear-fuel-
pact-10 90 21 200087_1.html
151
Pobedash, Dmitry, “Russian-Indian nuclear cooperation” available at http://www.acad emiaedu/ 11
23 813/ Russian-Indian_Nuclear_Cooperation
152
Boese, Wade, “U.S. Joins Others Seeking Nuclear Export Criteria” Arms Control Today, May 2008
available at http://www.armscontrol.org/act/2008_05/NuclearExport
153
“Russia plays hardball on ENR transfer to India”, The Hindu, June 8, 2012.

97
Following the India US nuclear deal, Russia & India signed a deal for “long-term civil
nuclear cooperation”. This deal did not have any restriction clause for India. It has
sufficient provisions so that no curbs are imposed even in the future. The contract was
welcomed as a “major step forward in strengthening our existing cooperation in this
field by setting up more nuclear reactors in India, transferring a whole range of
nuclear technologies and uninterrupted Uranium fuel supply to India’s nuclear
reactors”. 154
The document opened opportunities for India to have access to other
Russian technologies, such as “enrichment and re-fueling technology, and also light
water reactors technology”. The deal raised our bilateral relations and cooperation in
the nuclear field to the next level. Now India had better openings for getting involved
into joint research, and be a part of the “development and design of next generation
reactors; and have “enrichment and reprocessing rights”. Another advantage of the
deal with Russia was that “Russian reactors would be built under an advanced flow-
line technology that reduces construction time and expenditure by 25-30 per cent”,155
and these reactors being the safest in the world.

As per “Indo-US nuclear 123 deal”, India will be required to return the equipment as
well as fuel supplied by US, if the deal gets terminated. Also it will mark the end of
US cooperation. In contrast to the same, India-Russia deal has no such clauses. There
was no request from “ROSATOM, the State-run nuclear power cooperation from
Russia” for any liability cover, whereas US private companies such as
“Westinghouse” and “GE” insisted on it. As per some sources, 30 tons of pallets of
nuclear fuel were supplied to India for its “Pressurized Heavy Water Reactors” in
April 2009 by “Russian nuclear fuel manufacturer TVEL” under the deal. As a part of
this nuclear deal “Russia will set up four new reactors in Kudankulam and another
nuclear park of 6-8 nuclear reactors in Hazipur in West Bengal”.156

Our nuclear cooperation with Russia received further impetus in March 2010, when
Prime-minister of Russia, Vladimir Putin, visited India; when both sides adopted a

154
“India, Russia sign nuclear deal”, The Times of India, December 9, 2009.
155
Mohanty, Arun, “Indo-Russian Strategic Partnership Enters New Stage”, Mainstream Weekly, Vol.
XLVII, No. 52, December 12, 2009 available at http://www.mainstreamweekly.net/ article1834.html
156
Mishra Sitakanta, “India’s Civil Nuclear Network: A reality check”, Academia, available at
http://www. academia. edu/ 534 757/ _Civil_Nuclear_Network_A_Reality_Check

98
road map for closer ties in the sensitive area. Under the road map, Russia would build
16 nuclear reactors in India’s east coast to help India meet its growing energy
requirements for maintaining country’s high rate of economic growth. Prime-Minister
Putin also promised “the supply of fuel for nuclear reactors and expressed interest in
helping India in the disposal of nuclear waste”.157 India also conveyed its willingness
to increase import of Russian uranium fuel. Russia proposed to have a joint venture
with India to undertake “exploration and exploitation of uranium mining” in Russia as
well as in other countries. Russia has offered India, a stake in Elkon Mine Project in
Yakutia.158 Alexander Kadakin, the Russian Ambassador to India, said, “this
agreement will be a core element of India’s plan to more than quadruple India’s
nuclear power capacity by 2020 – a target outlined by Indian Government”.159

As Russia steps forward to help India in setting up more Nuclear Units at

“Kudankulam Nuclear Power Project (KNPP)” and also at other sites in India, our
cooperation in this strategic area is bound to flourish. In 2012, Russia & India Russia
prepared another roadmap for setting up of about 18 Nuclear Power Plants each
having a capacity of about 1000MW. But this important step of nuclear cooperation
has not implemented so far due to disagreement on finding “common ground on the
law and the costs”. Consequently the countries failed to reach an agreement on KNPP
3rd and 4th units.

Finally after almost two years of tough negotiations over their inclusion in India’s
civil nuclear liability law, the two countries reached a deal for building the 3rd and
4thunits of the KNPP in April 2014. The long standing problem with KNPP’s 3rd and
4th reactors came up when the “Civil Liability for Nuclear Damage Act” was passed
by the Indian parliament in 2010. As per this act, the client can demand compensation
from a supplier, if an accident occurs due to the faulty equipment. Russia demanded
that the terms and conditions of 1st and 2nd units of KNPP should also be applied to 3rd

157
Roy, Meena Singh, “Putin’s Visit to India Resetting the Indo-Russian partnership,” Strategic
Analysis, Vol. 34, No. 4, July 2010, pp 490-495
158
Shukla Vinay, “Russia offers India Joint Ventures for Uranium Mining”, Outlook, November 21,
2010 available at “http://www.outlookindia.com/news/article/Russia-Offers-India-Joint-Ventures-for-
Uranium-Mining/702015”
159
ITAR TASS, “Russia and India expand ties”, December 20, 2010 available at “http://in.rbth.
com/articles/ 2010/ 12/20/ russia_and_india_expand_ties04996.html”

99
and 4th unit. India chose not to apply the civil nuclear liability law to unit-1 and unit-
2, as these units were set up under the 1988 agreement – long before the 2010 civil
liability for Nuclear Damage Act. After discussions between the “Nuclear Power
Corporation of India Ltd. (NPCIL)” and “Russia’s Rosatom”, the agreement was
finalized. Russia agreed to supply its “pressurized water reactors” under the purview
of the Act, and India agreed to increase the cost of the equipment cost in view of the
additional liability under the Law.160 The cost of project for building the third and
161
fourth unit of KNPP works out to Rs. 33,000 crores or $5.5 billion. The
construction work would start in April-May 2016.

The full scope of India Russia Civil Nuclear Energy Cooperation was reviewed at the
3-day conference being organized by Rosatom during the Atomexpo-2014 exhibition
in Moscow. Russia said that India could reprocess the spent nuclear fuel from KNPP.
India has three operating processing plants that can reprocess spent nuclear fuel based
on solvent extraction process. Countries like the US were vary of India’s capability to
process spent nuclear fuel; worried that it could be used in country’s nuclear weapons
programme. The Indo-US nuclear deal negotiations were slowed down on account of
American concerns over the Indian use of spent nuclear fuel. 162

Agreement regarding peaceful use of nuclear energy was one of the sixteen deals
finalized during the 15th annual India Russia bilateral summit. The two countries
consented to construct about twelve Nuclear Units, over a period of 20 years. Two
new units of “Kudankulam Nuclear Power Plant” are also included in this number.
India & Russia decided to also identify a new site for construction of the nuclear
power plant. As per the “Russian State Nuclear Corporation Rosatom”, the agreement
is a “strategic vision to strengthen cooperation in the field of nuclear energy”. The
leaders of the two countries issued a statement entitled “Druzhba-Dosti -A vision for

160
“India-Russia accord on TN N-plants soon”, The Tribune, March 30, 2014 available at http://www.
tri bune india. com/2014/20140331/nation.htm#9
161
Korablinov Alexander, “India, Russia sign Kudankulam 3 and 4 agreement”, Russia & India Report,
April 14, 2014, available at http://in.rbth.com/economics/2014/04/14/ india_russia_sign_kudankulam
_3 _ and_4_agreement_34491.html
162
Korablinov Alexander, “Indo-Russian nuclear cooperation reviewed at Atomexpo-2014”, Russia &
India Report, June 10, 2014, available at http://in.rbth.com/economics/2014/06/10/indo-russian_
nuclear_ coope ration_ reviewed_at_atomexpo-2014_35893.html

100
strengthening the Indian-Russian partnership over the next decade”. As per the same,
“the two countries view nuclear energy as a clean, reliable and viable source of
energy”. Like the defense sector, Russia also aligned nuclear cooperation with ‘make
in India’ programme, as the deal for construction of nuclear reactors will also include
manufacture of equipment and components in India.163 While Putin and Modi during
the summit decided to speed up the implementation of defense and nuclear energy
cooperation programmes between India & Russia, the US fears that “their decision to
increase bilateral cooperation in these spheres may make it lose the Indian market to
Russia”. 164

Furthermore, for several years now, a working group has been identifying areas of
mutual interest in scientific and technical cooperation. These fields are fast reactors,
thorium fuel cycle, blanket acceleration systems, high current proton and ion
accelerations and controlled thermonuclear fusion. A separate topic is the construction
of a nuclear facility for distillation desalination systems that would resolve the
problem of water supply.

Rosatom willingly shares its technologies, experiences and competences with India;
which would open up the possibility not only to develop new products in the nuclear
fuel cycle but also to jointly enter the markets of third countries. After the “2008 US-
India Civil Nuclear deal”, India has many partners for nuclear energy requirements.
Hence both India & Russia will have to put more effort to sustain the bilateral nuclear
cooperation., by motivating private companies also to be involved in the process.
“Indian companies need to invest more in joint nuclear projects beyond reactor
construction in India that can combine the engineering expertise of both nations”. 165

163
Jacob Jainath, “Putin backs Make in India with copter; nuclear deals”, Hindustan Times, New Delhi,
December 11, 2014.
164
Upadhyay Dadan, “ US ‘troubled’ over slew of deals during Putin-Modi summit”, Russia & India
Report, December 17, 2014, http://in.rbth.com/world/2014/12/17/us_troubled_over_ slew_of_ deals_
during _ putin-modi_summit_40385.html
165
Foshko, Katherine Tsan, “Re-Energizing the Indian-Russian Relationship: Opportunities and
Challenges for the 21st Century”, Jindal Journal of International Affairs, VOLUME 2, ISSUE 1,
August 2012, pp 140-184 available at “http:// www.jsia. edu.in/ JJIA/PDF/Katherine-Re-
Energizing.pdf”

101
 Cooperation in the Energy Sector

Energy security is a vital aspect of Indo-Russian relations. India has a lot of energy
requirement. Russia is the largest exporter of natural gas in the world and second
largest oil producer. Russia possesses large energy reserves and India expects its
energy to satisfy the domestic needs. Both the countries cooperate with each other to
develop of their energy resources, projects and energy infrastructure.

India Russia Cooperation in the energy sector is not a new development; it is rooted in
the history. The former Soviet Union played a major role in setting up of hydropower
stations in India, in developing Indian coal industry, in exploration of crude oil in
India; and in setting up of India’s energy major ONGC. Soviet Union provided
technical and financial assistance for the construction of Obra and Corba Thermal
Power Stations, the Bhakra Right Bank Hydropower Station, the Heavy Electrical
Equipment Plant at Haridwar. Again it provided credit and technical assistance to the
Barauni Oil Refinery for the construction in Bihar. 166 India Russia cooperation in the
field of energy, acquired new dimensions in the post-cold war period, particularly in
the hydrocarbon and nuclear sector. Most importantly, India and Russia share a high
level strategic partnership since 2000, when the two countries signed the strategic
partnership to take their relations to a higher level and revived the idea of large scale
energy cooperation.

The consumption of hydrocarbons in India will increase very rapidly. After the US
and China, India is the 3rd largest oil importer. During 2013-14, India daily imported
about 3.8 million barrels of crude oil. “The International Energy Agency (IEA) says it
will become world’s largest oil importer by 2020”. 167
India imports a maximum of it
from the volatile Middle East region, accounting to 75% of India’s energy need. This
requirement will grow to 85-90% with time. Secure and diversified sources of energy
are to be identified by India, to sustain its current high growth rate”. Russia, being

166
Maharana, Sanjukta, “Indo-Russia Security Cooperation’, World Focus, Annual Issue, 408,
December 2013.
167
Choudhury, Jhink, “When energy starved India meets oil rich Russia”, RT, 14 May 2014 available
at “http://rt.com/op-edge/158880-energy-starved-india-russia-oil/”

102
world’s largest supplier of oil and natural gas, is well positioned to meet those needs.
India Russia cooperation in this area will ensure India’s energy security in the coming
decades.

India has invested $2.7billion in the Sakhalin-I, an upstream offshore natural gas
development project in Siberia, which is India’s largest investment abroad in a single
project till date, where 20% stakes belong to us. India has also been seeking a stake in
Sakhalin-3. In 2006, ONGC took over “Imperial Energy”, which is a London listed
company of Russia. The deal was done in US$2.58billion, and ONGC acquired share
in Russian oil market. In 2014, Oil India Limited (OIL), the second largest state
owned oil explorer in India bought a 50% stake, worth $85billion, in a block in
Russia’s Tomsk Region. 168
India has been eying energy projects at Timon Pechora
basin and Vankor in the East Siberia.

India is also considering an option to invest $1.5billion for an opportunity in Yamal

peninsula that houses 1/5th of global gas reserves, offered by “Russian firm Navatek”.
Some State-run Energy Companies, such as ONGC, Petronet LNG and GAIL are
looking forward to have stakes in Energy Sector in Russia. Gail intends to put in
about US$ 1.5 billion in the “Yamal Nanets region”. GAIL will either market the
LNG their or bring it to India.

Due to large reserves, Russia has surplus energy sources. On the other hand, due to
fast growth India requires lot of energy. This requirement cannot be fulfilled from
local production. Hence India has immense interest in the Oil & Gas sector. Presently
Russia supplies bulk of its oil and gas to European countries. The European demand is
stagnating or even declining and Asian, particularly Indian, demand is likely to grow
multi-fold. This makes Russia to diversify to new clients. Indian access to Russian oil
& gas sector is thus aligned with Russian needs.

Currently Russia supplies only about 5% of its total exports of Natural Gas to Asia.
Russia intends to raise it to 25% in near future. Russian President Medvedev indicated

168
Korablinov, Alexander, “Oil India buys 50 pct stake in Siberian block”, Russia & India Report, May
8, 2014 available at “ http://in.rbth.com/economics/2014/05/08/oil_india_buys_50 _pct_stake_in_
siberian_ block _35101.html”

103
in 2010 “that Russia is considering participation in the TAPI (Turkmenistan-
Afghanistan- Pakistan- India) pipeline, the project to deliver gas along the ancient
Silk Road”. The project is funded by “Asian Development Bank”, as per an
agreement signed in December 2010. “Gazprom, the world’s largest extractor of
natural gas, would serve as the supplier for the project”. 169
The TAPI project was
launched on 13th Dec 2015 and is expected to become operational only by 2019.

India has always promoted the idea of Russian companies participating in Oil and Gas
projects in India. This includes both upstream projects as well as downstream
projects; and also the joint exploration projects in third countries. India has prepared
its energy diplomacy to swiftly penetrate energy market in Russia. Indian Public
Sector Energy Companies have made substantial investments in Russia. In addition to
the same, India is stimulating its private sector companies to make investments in
“downstream petroleum units” in Russia and obtain stakes in Russian petroleum
refineries. India has mooted the idea of Joint Ventures for Gas Liquefaction projects
in Russian offshore fields, and transportation of liquefied gas to India. India favours
Joint Ventures for oil exploration with Gazprom and Rosneft, Russian oil and gas
majors. India also desires stake in the Sakhalin-III project. In March 2012, an Indian
company, Reliance Industries Limited, entered into a contract with Republic of
Tatarstan, which is part of the Russian Federation, for petrochemicals and crude
refining business. “Tatarstan is one of Russia’s most economically developed regions,
located 797km from Moscow on the eastern frontier of the country. Its main wealth is
crude oil and gas from the casing head of an oil well”. 170

In October 2014, Rosneft offered ONGC to acquire stakes in two Siberian oilfields,
nearly 49% in Yurubcheno-Tokhomskoye and 10% in Vankor. Russian experts feel
that the offer would prove to be mutually beneficial for Rosneft and ONGC; and at
the same time would help the Russian company to secure position in the Indian
markets. Both fields are export oriented and produce high quality oil. The experts

169
Foshko, Katherine, “Re-energising the India-Russia Relationship”, Gateway House, Mumbai, 2011,
p156.
170
Datta Aveek & Shrivastava Bhuna, “RIL, Tatarstan in pact for petrochem, refining biz”, “Live Mint,
April 5, 2012 available at http://www.livemint.com/ Companies/ ZfwJwYC3M7I Vk73AFOFksN/
RIL-Tatarstan-in-pact-for-petrochem-refining-biz.html”

104
believe that Rosneft’s key interest is to attract funds for promising projects. Due to
invasion of Ukraine by Russia, US and Europe imposed sanctions. As a result
Rosneft's access to funds and technology from the west was cut off, and it required
Asian partners for the same. India needs Russian oil even despite having its problems
fixed by Iran. As for India, considering the presence of Iran and other fuel suppliers in
the region, its participation in these projects is not vital in the short run; bur
collaborating with Moscow is very important in terms of diversification of supplies.171
Vankor is a desirable ‘price of pie’ for the Indians, but the share they get is smaller.

Cooperation in the Oil sector

India-Russia annual summit was held in New Delhi on December 11, 2014, during
which an agreement was signed by Russian oil company Rosneft Corporation, which
will deliver 10 million tonnes of oil to India, annually for 10 years. This, of course,
will not satisfy all the needs of India, but will allow hedge against situations like the
one that occurred in 2012. Then, under pressure from the US, India was forced to
reduce oil imports from Iran, which led to higher prices not only for fuel, but also for
172
all consumer products. In the field of oil exploration, most of the land deposits in
Russia seem to have been explored. Hence new field can now be explored on the
shelf. Russian state-run company Rosneft has offered two fields for Joint Exploration,
and India’s ONGC Videsh Limited (OVL) is looking for the Magadan 2 and Magadan
3 shelf projects in the Sea of Okhotsk.

It is expected that Russia will have a greater role in world’s energy security. At the
same time, India’s energy requirements are increasing rapidly. It is expected that by
2020, the growth in oil demand from India will be about 45% of the total demand.
Hence, there is a need to improve pipeline connectivity between Russia and India.
Some proposals are given by energy experts for possible pipeline connectivity

171
Kuzmin Viktor, “Analysts optimistic about Rosneft’s recent offers to ONGC”, “Russia & India
Report, October 30, 2014, available at http://in.rbth.com/ economics/2014/10/30/analysts_ optimistic_
about_ rosnefts_ recent_offers_to_ongc_39415.html”
172
Volkhonsky Boris, “New energy, new horizons: India-Russia ties moving into higher orbit”, Russia
& India Report, December 16, 2014, available at “http://in.rbth.com/blogs/2014/12/16/ new_ energy_
new_ horizons_ india-russia_ties_moving_into_higher_orbit_40369.html”

105
between the two countries which both the countries are looking into. One is East
Siberian Oil Pipeline, which will start from the Angarsk in Siberia and reach Daqing
in China. Using this pipeline, India could pick up the oil from Nakhodka port in the
Pacific, which would be an important step for creating an Asian Oil Market. It is
proposed by India’s ONGC Videsh Limited (OVL) to go for an energy highway in the
form of “Russia-China-India (RCI)” pipeline. As per the proposal , this pipeline will
start from Russia and reach Kashgar in China, after passing through Turkmenistan,
Uzbekistan, and Kazakhstan. Thereafter it will cross the Siachen glaciers in Laddakh
to enter India. Other route to enter India can be through Himachal Pradesh.
Construction of a $30billion oil pipeline for transporting Russian crude to India is
possible only if there is a joint deal between all the countries through which it will
pass. If executed, this project will be the most expensive in the world. In July 2014,
Russian President Putin and Indian Prime-Minister Narender Modi discussed the
possibility of building another pipeline along the route of the planned TAPI, which
would carry hydrocarbons to India. This meeting took place in Brazil where both
leaders had gone to attend BRICS summit. If implemented, such a pipeline would be
the biggest ever energy project in history and would enhance India’s energy security.

India is keenly observing Russia’s hydrocarbon scenario. Russia has massive

reservoirs of hydrocarbons and India desires that it should have a strong presence
there to ensure India’s vital energy security in the long term. India’s policy makers are
trying to “promote energy cooperation based on political understanding. India has
geared-up its energy diplomacy and is moving quickly to penetrate in the Russian
energy market”. 173
Russia and India could promote nuclear energy with the high
safety standards of safety in accordance with their respective nuclear policies and
international obligations, as Russia is now actively involved in India’s nuclear
programme. It is expected that in the near future, India-Russia energy cooperation will
receive a considerable boost.

173
“Russia moots mega energy pipeline project with India”, The Hindu, July 21, 2014 available at
http://www. thehindu.com/ todays-paper/ tp-national/ russia-moots- mega-energy- pipeline-project-
with-india/ article6232177.ece

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 Cultural relations

There is a long history where India & Russia culturally influenced each other. Russian
travelers and representatives have been showing profound respect and goodwill for
the Indian people. Many Indians and Russians have always regarded the affinity
between the two countries as an essential component of bilateral cultural contracts,
which is confirmed as well by archaeological findings, linguistic and ethnological
research. This affinity is possibly is the reason for mutual spiritual attraction between
India & Russia that has outlived centuries and continues to overwhelm our
relationship. In the fifteenth century, the merchant Afanasy Nikitin visited India, and
was probably the first Russian to do so. Since that time, India has had a constant
presence in the Russian heart and mind. Russian literature and art treated India as a
fabulous land with all the opulence of oriental tales. Indians reciprocated with a no
less interest in Russia. 174

Historically India & Russia have relished concrete cultural bonds. Before 1991, there
used to be abundant “long-term scholarly and student exchanges” between the two
countries. As an integral part of the bilateral relationship, we had cultural festivals
and art exhibits in both countries. Mahatma Gandhi and Leo Tolstoy, those
two pillars of humanist philosophy, started an active correspondence at the dawn of
the twentieth century. Rabindranath Tagore, one of India’s greatest modern poets,
visited the Soviet Union in 1930. The event of India’s independence provided a fillip
to the expansion of our cultural relations, as both were now sovereign states. The
writers, artists and performers from both the countries have been taking special
interest in cultural development of each other and in the exchange of their views and
works to our mutual advantage. A far reaching partnership in education, literature,
painting, stage theatre, cinema, music and dance spectacularly promoted the two
nations’ interest historical and cultural heritage of each other, and it all enriched our
everyday life. Russian based academia was particularly robust in Indian studies:
Indology related five chairs still exist in Moscow (since 1851), St. Petersburg (since

Dash, P.L. & Nazarkin, Andrei M., “India and Russia: Strategic Synergy Emerging”, Authors press,
174

New Delhi, 2007, p 104.

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1855), Vladivostok & Kazan; and Moscow state university offers such specializations
as Indology and Buddhism and South Asian Studies. “The Institute of Oriental
Studies at USSR (now Russian) Academy of Sciences” was home to prominent
Indologists, including Grigory Bongard-Levin, a noted specialist in ancient Indian
civilizations, and Academician Yevgency Chelyshev, who has written fifteen books
and over 500 articles on Indian literature and culture. Moscow’s Progress Publishers
brought out Russian literary classics and academic books, translated into Hindi and
other Indian languages, for consumption in India. At the height of the relationship
Russian also helped inculcate the study of its language and culture in India –
instructors of Russian, armed with the most up-to-date textbooks and other
educational material, were sent to teach at the University of Mumbai until mid-1970s,
when a cadre of native Indian teachers took over. 175

Unfortunately, in 1990s Russian Indology, as most other branches of knowledge and

cultural activities, had indeed a hard time but it did not perish. Governments may
quarrel or may forget about their duties, but scholars, teachers, and artists go on with
their work. Thus, it was in the 1990s that Prof. Elizarenkova finished her translation
of the ‘Rigveda’. During same period, ‘Mahabharata’ was also translated and
published. Some people, mostly women, in Russia developed an admiration for Indian
classical dances of various schools. Enthusiasts go to India, take classes there, then
come back to Russia and propagate the art among the compatriots. Thus an important
centre of classical Indian dances now flourishes in Petrozadsk, in Karelia in the north
of the Russia. In Moscow there are also several centres, one of them at the
“Jawaharlal Nehru Cultural Centre affiliated to the Indian Embassy in Moscow”. 176

Since 2000, the relations between India and Russia have got a new fillip. In October
2000, the “Declaration of Strategic Partnership” between the two countries was
signed. No doubt, the ‘Strategic Partnership’ has already brought about a considerable
growth of Indo-Russian relations in various peaceful spheres. The “Integrated Long-
Term Programme of Cooperation in Science and Technology”, first signed by Mikhail

175
Foshko, Katherine, “Re-energising the India-Russia Relationship”, Gateway House, Mumbai, 2011,
p74.
176
Dash, P.L. & Nazarkin, Andrei M., ibid, p 110.

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Gorbachev and Rajiv Gandhi in 1987, was extended up to 2010 when Putin visited
India in October 2000.

An inspiring example of collaboration between Russian scholars and Indian diplomats

has been a series of enlightening travels all over Russia, in 2000-2003, by research
fellows of the Moscow Institute of Oriental Studies and people from the Indian
Embassy in Moscow, including in most cases the ambassadors themselves, first Mr.
Lambah, and later Mr. Raghunath. Composite Russian-Indian scholarly-diplomatic
groups visited many cities, organizing seminars, in local universities or other seats of
higher education, on various aspects of Indian and Russian history, as well as on Indo-
Russian relations. The Institute of Oriental Studies in Moscow got published a series
of booklets covering the seminars. The booklets make a very interesting reading. They
show once again the vastness and variety of lifestyles in multifarious Russia, the rich
potential for the development of Indo-Russian ties at the regional level and the vivid
interest of the people in the regions in developing such relations. In the meantime, the
booklets also show how little Russian people outside the metropolis of Moscow and
St. Petersburg know about India and her culture. Much more is required to be done to
spread the real knowledge of India among Russians indeed.

The Joint Statement issued after the summit of 2002 held in New Delhi, “stressed the
need to strengthen the cultural bonds between the two countries”. 177
Worthy
demonstrations of the survival of our cultural ties were the historic events of 2003:
“Festival of St. Petersburg in New Delhi and Mumbai, Days of Indian Culture in
Russia, Days of Russian Culture in India”. Different regions of Russian Federation as
well as different Indian States participated in the cultural exchange programmes,
resulting in cultivating direct contacts, which in turn helped to “elevate cultural
relations to even an ever higher level”.

Indians are taking a lively interest in present-day Russia, and are eager to know more
about its culture, customs and traditions. Some want to study the Russian language to

177
“India - Russia, Joint Statement”, Embassy of India, Moscow, 4 December 2002 available at
http://indianembassy.ru/index.php/ru/itec/51-bilateral-relations/important-official-documents-/182-
04122002-india-russia-joint-statement-

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read the original Russian literature, history, and story books about places of interest.
Others want to enroll in Russian colleges and universities, yet others wish to establish
direct links with business partners in Russia, while many plan tourist trips to diverse
parts of Russia. All of this brings hundreds of people to Russian Centres of Science
and Culture. Near 40 years now, these centres have been offering information about
Russia, and representing its cultural and academic potential in New Delhi, Mumbai,
Chennai, Kolkata and Thiruvananthapuram. The centres regularly arrange art and
photo exhibitions, concerts, literary and research seminars, Russian and Indian film
shows, and chess competitions for the local public. Each centre has a library and
offers Russian language classes. The cultural centre in New Delhi also offers piano,
classical ballet and art classes to interested learners.

Disseminating objective information about current developments in Russia is one of

the principal goals of “Russian Centres of Science and Culture”. In particular, they
offer information coverage of landmarks in bilateral relations. The centres promote
direct Russian-Indian ties in commerce and other economic fields, science,
technology, information, culture and education. They pay special attention to making
all their efforts comprehensive, and seek to attract members of the two countries’
political, business and academic communities to their programmes. The Russian
centres of Science and Culture focus attention on working with young Indians, who
will eventually determine Russian-Indian links. Thus, the centre in New Delhi has for
many years been in contact with the local public schools such as Springdales and Blue
bells, whose pupils have the opportunity to study Russian language, and with the
Nehru Bal Samiti children’s charity organization, which is active international
children’s exchanges.

In 2004, the centres set up more than ten cultural programmes intended for secondary
and higher school students. There have been art contests, concerts, Russian language
and literature quizzes and competitions, and lectures on Russian history, research and
education. Young people eagerly visit regular lectures and Russian film shows – some
of them premiers; and Russian language courses, using cutting-edge teaching methods
and curricula, at the centre are also very popular.

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During 2004, in order to bring Russian entertainers to Mumbai, the Cultural Centre of
Russia, Mumbai organized a series of performances by the ensemble of the popular
Russian songs: ‘The Samara Patterns’, a young talented pianist Irina Shkourindina,
the Oriental Dance-Drama Folk Theatre ‘LEELA’. Dynamic ties are being established
with Indian higher schools, including the Jawaharlal Nehru University New Delhi, the
Delhi University, the Mumbai University, the Anna University Chennai and the
Kolkata University. These contacts do not merely enthuse Indian students in Russia,
but also help Russian University alumni to establish themselves in medicine,
engineering, computer technologies and other fields.

Contacts with ethnic Russian are another aspect of the centres’ work. Having spent
many years in India, those Russian are well versed with the Indian way of life and its
traditions. At the same time, they are anxious not to lose touch with their ancestral
land. They want their children to speak Russian and know the Russian culture. Many
take part in programmes arranged by the Russian Research and Cultural Centres, be
that art shows, concerts or seminars. Among current priorities for the “Russian Centre
of Science and Culture” are promotion of Russian high technologies in India and
establishment of direct links between Russian and Indian enterprises engaged in that
field.

Many initiatives aim at pioneering forms of public contacts. Deserving of special

attention here are multimedia public introductions. The centre’s staff prepares and
advertises them single-handedly for public political, cultural and educational events.
These patterns of circulating information have become highly popular with
journalists, leaders of public organizations, heads of research centres, NGOs and
diplomats alike. The Russian Centres of Science and Culture are doing painstaking
work to preserve the Roerich academic, artistic and literary heritage. The Roerich
family tremendously contributed to global culture, and built a bridge between
twentieth century Russia and India. They also built a bridge among continents – from
America to Europe to Asia. The Anniversaries of Nicholas Roerich, his wife Yelena
Roerich and their son Svetoslav Roerich offered the most spectacular instance of
Russian-Indian friendship with memorable festivals in both countries being held year

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after year for the last few years. The birth centenary celebrations of Svetoslav Roerich
were a great success in October-November 2004 in many towns across India with
Roerich connections. The celebrations involved top level Indian statesmen and
Russian delegations. The “Russian Center of Science and Culture” in New Delhi
opened a Roerich museum and an art club on the occasion. These will be in the
foreground of efforts to preserve the heritage and promote the cultural and political
impact of the renowned cultural family.

On the eve of its 30th anniversary the Cultural Centre of Russia in Mumbai organized
two international scientific and research conferences with participation of delegation
of Russian specialists and scholars: Indo-Russian Literary Conference ‘The Great
Contemporaries – Leo Tolstoy, Anton Chekhov, Mahatma Gandhi and Rabindranath
Tagore’ in November 2004 and Indo-Russian Conference on ‘Contemporary Trends
in Russian Language and Literature – Issues and Perspectives’ in December 2004.
The Russian-Indian cultural and information contacts are at a level high enough to
produce ever more links between the two outstanding cultures. Many fields offer
ample room for progress, including tourism, cultural and youth exchanges and direct
inter-regional economic partnership.

Exchange in all areas of culture and the arts are well received in both countries and
are growing. The “Jawaharlal Nehru Cultural Centre at the Indian Embassy in Russia”
is doing no less to acquaint Russians with India’s millennia-old culture and traditions.
There are cultural centres in St. Petersburg, Kazan, Vladivostok, Ufa, Ekaterinburg,
and Sakha Republic set up together with regional and republican authorities. India has
long and greatly attracted Russian hearts, and exerts an ever greater attraction
nowadays. Suffice it to mention that the number of young people who study Hindi,
Indian music and classical dances at Indian cultural centres in Russia has been
steadily growing in recent years.

One more sector for cultural relations is education. There are many Indian students in
Russian universities, and this has helped in creating direct contacts between Indian &
Russian specialists and faculties, working in various Indian Universities and Russian
regional educational centres. This provides opportunities to know each other’s culture.

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”Chairs of Indian studies have been established in Russian institutions in Moscow,
Vladivostok and St. Petersburg and Vladivostok. Institutions in other areas also get
project support and examples of emerging Indo-Russian cooperation in the field of
academics. The current three-year inter-governmental cultural exchange programme
is to provide for great exchange. Cultural cooperation has been supplemented with
contacts in the world of scholarship and education.

An indisputable fact about indo-Russian relations is that our people, by and large,
have had very insufficient and inadequate knowledge about each other. It cannot be
denied that in the twentieth century, especially in its second half, as the contacts
between Russia and India developed in many ways, the sum total of the mutual
knowledge must have increased to dispel this ignorance. The overall balance,
however, is still heavily tilted towards the side of the mutual ignorance. Now, at the
beginning of the new century and the new millennium, many hope for more intensive
contacts between our peoples and a steady progression in their knowledge about each
other. This may be due not so much to any efforts of the governments (though, of
course they are also welcome), as to the breakthroughs in the means of
communications. More and more Indians and Russian can travel all over the world,
and the newest electronic media, first of all, the World Wide Web, can bring people
together even if they remain physically in their homes. The contacts would surely
affect various walks of life and various spheres of cultural activities of our peoples. A
special in this process shall belong to those who professionally study cultures of India
and Russia, and who may serve as mediators in the difficult process of mutual
acquaintance and mutual understanding of the peoples.

This process indeed has never been and is not going to be an easy one. India and
Russia are two quite different worlds. Nevertheless, there are some dimensions of
similarity that ought to be explored to make our contacts and relations mutually
enlightening, enriching and mutually beneficial. The disintegration of the Soviet
Union as well as other changes of political borders in Europe inevitably brought to
one’s mind the old question of whether or not the present political borders in South
Asia ate stable and durable enough. The political elite in the Republic of India has

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proved to be wiser than their counterparts in the former Soviet Union and in the post-
Soviet Russian Federation. Historians and political analysts explain this fact by a
longer tradition of parliamentary democracy in a multi-ethnic federal state as a very
valuable element to build democracy in Russia.

Indian economists and industrial managers, too, have proved to be more sophisticated
than their Russian colleagues. Our two countries started their market economy
reforms approximately around the same time, at the beginning of the 1990s. The
Indian reforms are considered by and large successful, whereas in Russia the results
of the reforms have been rather controversial. It seems, in the field of economics and
industrial management as well, Russia has many good lessons from India to learn.
However, the transfer of knowledge and know-how from India to Russia, as all
intercultural transfers, is a difficult task. One should not forget that India and Russia
are two different civilizations. A Russian, who comes to India without any
preparation, experiences a cultural shock. The same problem exists for an Indian who
comes to Russia despite a long history of studying each other.

On February 8, 2005 the Cultural Centre of Russia in Mumbai celebrated its 30th
Anniversary. Its continued association with India over all these 30 years has enabled
us to witness the ongoing historic transformation of this great country of India, the
“dynamic growth of the economy and entrepreneurship, and a great new flowering of
national culture and social vitality”. The Centre, during these three decades of its
existence, has been doing a number of activities to promote the friendship between
people of our two great countries. Despite a lot of economic & socio-political changes
in both the countries during the last decade, the Indian friendship organizations and its
activists along with the Russian friends have worked tirelessly at this centre for
strengthening bonds between the Indians & Russians, and because of these efforts the
Russian-Indian friendship is growing deeper and stronger day by day.

When Vladimir Putin visited India on 25th & 26th January 2007, cultural agreements
were signed between the two countries regarding cultural exchange programme
between the two countries during 2007-2009. The year 2008 was celebrated as the
“Year of Russia in India”, and the year 2009 was celebrated as the “Year of India in

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Russia”. Similarly, the “festival of Indian culture” was efficaciously held in Russia
during 2011, and 2012 was acknowledged as the year of “festival of Russian culture”
in India. During the official visit of Putin to India in 2012, the “programme of cultural
exchanges between Russia and India for 2013-2015 was signed. It was planned that
the two countries will share technical performances, exhibitions of contemporary art,
visits of art groups, museum staff, writers and filmmakers”. 178

In May 2015, Namaste Russia, a “festival of Indian culture in Moscow”, was

inaugurated by India President Pranab Mukherjee. It was a six month long festival
starting in May and ending in November 2015. It was organized jointly under the
patronage of Russian Ministry of Culture and Indian Council for Cultural Relations
(ICCR). This festival seeks to “enhance and boost cultural bonds that build solid
bridges of friendship and understanding between peoples of both countries". 179

Culture occupies a special place in our relations. Our cultural exchanges are centuries
old and have been put on a strong new foundation in the last five decades. The
Russian classics have been translated into all major Indian languages. Most of the
works of Indian writers have been translated into Russian; Russian plays are regularly
performed in India in translation; Russian music, dance and films attract great
attention of the Indian public. Indian people are elated to know about the sustained
curiosity of Russian people in various regions have in Yoga, Dance, Indian music,
Literature, Ayurveda and Indian Philosophy.

The Cultural Centre of Russia in Mumbai has always endeavoured to enrich the
multifaceted cultural life of one of the most attractive cities of India by presenting
Russian films, ballet, music, dances, literary and cultural heritage of friendly people
of Russia. Today this Cultural Centre stands as a premier cultural centre not only in
Mumbai but also in the western part of India, and it has a vital role in bringing the

178
International events: The program of cultural exchanges between Russia and India in 2013-2015 is
approved, 25 December 2012 available at http://www.prlib.ru/en-us/news/Pages/Item. aspx?
itemid=6001
179
“President Pranab Mukherjee inaugurates Namaste Russia festival in Moscow”, 11 may 2015
available at http://currentaffairs.gktoday.in/president-pranab-mukherjee-inaugurates-namaste-russia-
festival-moscow-05201522622.html

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people of Russia and India closer and closer. One important lesson, that we learn
from the history, is that despite

numerous ordeals and hardships facing our countries, they have always found courage
and strength to stand up to the odds of life, fight against all odds and ultimately
triumph over the challenges. Russia and India may face temporary glitches that from
time to time, but they will always be an vital constituent of any world order; and will
contribute uniquely towards the improvement of international conduct and the
progress of mankind.

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