13 November 2003 22:00
The Bear Hug
Growing Indo-US relations notwithstanding, that New Delhi shares a special relationship with Moscow was underlined by
the fact that the heads of the two countries have met four times in the space of just one year. During this current
visit, Prime Minister Vajpayee and President Putin have once again added to the plethora of agreements that already
exist between the two countries. Protocols and pacts have thus been signed on defence, space research, aviation, science
and technology and energy –– both nuclear and hydrocarbon –– apart from reiterating their continued support for the
battle against the scourge of global terrorism. However, given that in today’s changing global environment, economic
issues are increasingly becoming a major focus of most bilateral and multilateral relationships, Indo-Russian business
ties have till now mainly reflected the special relationship that existed during the Cold War. The current bilateral
trade figures, which are stagnating at an abysmal $1.4 billion, 80 per cent of which comprises India’s debt repayment in
rupees undertaken 10 years ago, are a case in point. Moreover, some legitimate concerns have been voiced that once this
special rupee-rouble arrangement comes to an end in 2005, bilateral trade will dip even further. That both governments
are cognizant of this problem is clear from the fact that a task force is being set up to work out the modalities of
utilising the balance of this fund as well as to identify prospective areas for investment. Also, a 100-man business
delegation is accompanying the PM on his three-day visit to Russia, with several businessmen looking at opportunities to
pick up some stake in Russian companies. This paper has pointed out the opportunities that may have been thrown up in
Russia’s business sector following the Yukos/Khodorkovsky issue and the subsequent flight of capital that took place. As
Mr Vajpayee has stated, the success of ONGC Videsh’s successful project in Sakhalin is "a measure of the
compatability and workability of efforts of mutual benefit." And time and again, leaders and representatives of
both countries have referred to the mutual trust that exists between their people. Hence, while defence and
security-based cooperation will, in all likelihood, continue and even be strengthened, it is time to look at infusing
this mostly narrow, almost unidimensional, relationship with a much-needed boost in the areas of trade, investment and
business.
[AIW [Asia Africa Intelligence Wire]] |
RUSSIA IN FACTS
