INDIA-RUSSIA BILATERAL SUMMIT
·
India-Russia
ink 10 defence pacts worth $ 4 billion
·
They
trumpet new partnership.
·
Putin
raises Sistema issue during talks.
During
Russian President Vladimir Putin's state visit to India in the last week of
December 2012, several agreements were signed between the two countries. These
include defence deals
worth around $ 4 billion.
(Rs. 22,000
crore) signed on Dec.24 following comprehensive talks, including
on differences over $ 3 billion investment by Russian telecom major Sistema,
whose licence was cancelled.
Mr. Putin
and Prime Minister Manmohan Singh underlook an extensive review of bilateral
cooperation, especially in the field of nuclear energy and discussed ways to
expedite an agreement for nuclear reactor 3 and 4 at Kudankulam. All key
bilateral issues, including defence, space, trade & investment, science and
technology, education, culture and tourism were discussed in the meeting which also
witnessed Russians raising their concerns over the issue of Sistema. Sistema,
with investment of $ 3.1 billion, has 56.68% stake in Shyam Sistema
Teleservices (SSTL) whose 21 out of 22 licences were cancelled by the Supreme
Court on February 2 as irregularities were found in their allocation.
The
Russian government, which has a stake of 17-14% in the company, has since been
expressing concern and pressing India to ensure protection of Sistema's
investments.
Russia and
India also resolved to further extend their partnership in the energy sector,
which has moved beyond investment (Sakhalin-I) to direct trade (Gazprom-Gail)
and is now seemingly set for joint investment in downstream and upstream
sectors. India put its interest areas on the table equity participation through
ONGC—OVL in existing and new projects in Siberia, Russia's Far East and the
Arctic Shelf besides interest in acquiring equity stake in discovered or
producing assets and in proposed Liquefied Natural Gas (LNG) projects in
Russia.
$ 2 billion Investment Consortium to
be set up
Russian
sovereign wealth fund Russian Direct Investment Fund (RDIF) on December 24,
2012 signed a pact with State Bank of India (SBI) for setting up a $ 2 billion
investment consortium for promoting investments between the two countries.
The RDIF
and SBI would each invest up to $ 1 billion in the consortium, a statement
issued by the Russian sovereign wealth fund said.
The
entities would team up to facilitate access to long term capital in Russia and
India and actively promote mutual investments.
Bolstering Ties
·
Russia
will sell 71 military helicopters for $ 1.3 billion to India.
·
India
will also get technological kits to assemble 42 Sukhoi jet fighters for $ 1.6 billion.
·
Russian
sovereign wealth fund inks pact with State Bank of India for setting up a $ 2 billion investment consortium.
