Diplomatist Magazine Diplomatist October 2019 | Page 22

SPECIAL REPORT
were many breakthroughs in India and Russia
relations. Furthermore, India’s economic
development was inspired by the Soviet Union.
In fact, India received fi nancial assistance from
USSR in several ways to develop India and
towards economic self-reliance. Thus, some
of India’s well known public sector companies
like Oil and Natural Gas Corporation (ONGC),
Hindustan Aeronautical Limited (HAL), Bharat
Heavy Electricals Limited (BHEL) have been
established with the assistance of USSR.
Another major development India and USSR
was in 1971. The treaty of Peace, Friendship
and Cooperation between India and erstwhile
USSR laid the greater foundation for solid
relations between the two countries. Later,
the 1993 treaty of friendship and cooperation
between India and new Russia, 2000 declaration
on Strategic Partnership between India and
Russia and the 2010 Joint statement elevating
the partnership to a special and privileged
strategic partnership. The relations between
two countries spans across the whole gamut
of sectors and rests on the fundamental pillars
of political and strategic cooperation, military
and security cooperation, cooperation in the
areas of the economy, energy, industry, science
and technology, and cultural and humanitarian
cooperation. However, economic cooperation is
an important component of all these. To bolster
the economic cooperation India and Russia and
India should focus on the areas where they can
increase it, such as energy.
new level corresponding to the changing global
economic environment. So Russia and India are
in dire need of innovative and novel approaches
in the energy sector. At present India Russia
cooperation in energy sector centred on nuclear
energy and oil investments. Russia accounts for
less than 1 percent of India’s energy imports,
whereas India’s energy imports from Russia is
under US$ 1 billion. Indian oil companies have
multiple investments in Russian oil fi elds. It
said that these investments have exceeded US$
10 billion so far.
S. No
1
2
3
4
5
Project Name
Sakhalin 1 Project
Imperial Energy
License 61
Vankorneft
Taas Yuriakh
Indian Partners
OVL
OVL
OIL-IOC
OVL, BPCL, OIL-IOC
BPCL, OIL-IOC
Stake (%)
20
100
50
49
29.9
Source: Gateway House
Energy cooperation
Both India and Russia have a long history
of cooperation in the energy sector, and the
prospects for the development of the energy
dialogue are as promising now as they were
during the period of friendship between the
Soviet Union and India. As part of it, since
the late 2000s, the Russia-Russia energy
partnership has been enjoying a renaissance.
Over a period of time, India and Russia have
implemented a wide range of long-term and
large-scale joint projects in the energy sector,
in this fi rst and foremost in the nuclear area.
Thus, making it one of the foundations of India
and Russia relationship’s special and privileged
strategic partnership. Furthermore, in order to
cement comprehensive ties and bring them to a
22 • Extraordinary and Plenipotentiary Diplomatist • Vol 7 • Issue 10 • October 2019, Noida
Thus it should be diversifi ed in new areas
like LNG, natural gas mobility, renewable
energy, financial markets for energy and
hydroelectricity, nuclear technology cooperation
and start scientist’s exchange programmes for
sharing scientific knowledge between two
countries.
Prospects
Russia is the second-largest producer of
crude oil in the world after Saudi Arabia, and
which is at 12.65 per cent and 13.36 per cent
respectively in global share. India is the third-
largest consumer in crude oil in the world and
the second-largest consumer in crude oil in the
Asia Pacifi c region after China. Russia is the
second-largest producer of the natural gas in the
world after the US and that is 16.23 and 21.50
respectively. The NITI Aayog 2017 project says
that India’s coal need will be persisted even in
2050 also with an envisaged share of 40 per
cent to 50 per cent in the energy mix. India’s
coal import increased from 39 MT in 2005-06 to
200 MT by 2015-16 but India’s coal production
will reach peak level by 2037 after that again
we have to import from other countries. On
August 08, 2018 NITI Aayog CEO Amitabh
Kant made a presentation at a review meeting