New Delhi: Russia is committed to being the “largest contributor” to India’s energy security after accounting for more than a third of the country’s oil purchases and is giving priority to long-term contracts for crude, coal and fertilisers, a senior Russian diplomat said on Wednesday.
India and Russia on Tuesday set a trade target of $100 billion by 2030 during Prime Minister Narendra Modi’s talks with President Vladimir Putin in Moscow. The two sides have already raced past an earlier target of $30 billion by 2025, with two-way trade currently worth more than $65 billion mainly because of India’s massive purchases of discounted Russian crude.
“Russia is committed to remain the largest contributor to India’s energy and food security. We prioritise long-term contracts for crude oil, coal, energy and fertilisers,” Roman Babushkin, chargé d’affaires at the Russian embassy, told a media briefing.
The two sides are eyeing investments in energy infrastructure, including oil refining and manufacture of petrochemicals and energy transition. The two sides also plan to diversify civilian nuclear cooperation as the “strongest pillar” of the bilateral strategic partnership, and there have been discussions on floating nuclear reactors and small and modular reactors, nuclear medicine and fast breeder reactors, Babushkin said.
Russia’s crude oil supplies to India have jumped from 2.5 million tonnes in February 2021 to 45 million tonnes in 2022 and 90 million tonnes in 2023, Evgeny Griva, deputy trade commissioner at the Russian embassy, said. “We now have a stable share of Indian crude imports, and Russia covers between 30% and 40%,” he said.
Russian LNG majors such as Gazprom, Novatek, RusChemAlliance and Sakhalin Energy too are eyeing the Indian market, and Russia is prepared to meet the technology needs of India’s petrochemical industries that are growing at more than 10% annually, Griva said.
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Though India and Russia signed an agreement in 2018 on building a second nuclear power plant after the one in Kudankulam, Babushkin said this pact was not binding and only reflected a commitment to such a project. “In order to meet the growing Indian demands in this area, we need to identify a second site for the nuclear power plant along with the Kudankulum nuclear power plant, which we are successfully implementing,” he said.
Several aspects have to be considered for a site for a second nuclear power plant, such as land acquisition, uninterrupted water supply, safety conditions, negotiations with local governments, and a feasibility study with details of seismic activity, he said.
Replying to a question on India’s demand for the repatriation of all Indian nationals recruited into the Russian Army, Babushkin said, “It is a common problem which has strong domestic implications for India. Unfortunately, this topic can be politicised, including internationally.”
Russia has “never wanted” Indians to be part of the Russian Army, which has not made any announcements about wants to specifically recruit Indians, he said. Most of the Indians currently in the Russian Army had entered the country on student, tourist or business visas and were ineligible to seek employment.
“The problem is there, and we are on the same side with the Indian government to resolve this problem as quickly as it is possible,” Babushkin said, adding this will be done through an established mechanism.
India demanded the release and repatriation of an estimated 50 Indians serving in the Russian Army as support staff after four Indians were killed while serving on the frontlines in the war with Ukraine. The matter figured in Modi’s discussions with Putin.
Babushkin played down criticism by the West, especially the West, of Modi’s visit to Russia, saying this was an engagement of two independent global powers and a demonstration of sovereignty by two countries promoting their national interests.
“Multipolarity is a matter of fact, and engagements between the two leaders were aimed at unlocking the full potential of the multifaceted, mutually complementary and all-weather special and privileged strategic partnership despite attempts to derail our legitimate cooperation and reduce India’s natural ties with Russia,” he said.
