India, Russia sign deals worth 10 billion dollars; Putin holds talks with PM

New Delhi
12 March 2010

India and Russia on Friday agreed to intensify their consultations on
Afghanistan and evolve a joint strategy to meet the challenges posed by terrorism in
their proximate neighbourhoods. Both sides signed pacts in defence, space and civil
nuclear energy spheres worth over 10 billion dollars.

Russian Prime Minister Vladimir Putin, who held detailed discussions on regional
issues with Prime Minister Manmohan Singh here, shared New Delhi's concerns about
terrorism emanating from the Af-Pak region. In a further indication of the convergence of
interests, he reiterated Russia's decision not to develop military ties with Pakistan.

"[Unlike many other countries], Russia is not maintaining military cooperation with
Pakistan as it takes into account the concerns of [our] Indian partners," Mr Putin said
after talks with Dr Singh. Russia's position is in welcome contrast to that of the US,
which continues to give military aid to Pakistan despite India's reservations.

Analysts here are of the view that Mr Putin's visit would have contributed to
reinforcement of the New Delhi - Moscow axis in regional and global affairs. His talks
with Dr Singh can lead to a hedging strategy involving India, Russia, and possibly Iran
and central Asian states, against the rise of Taliban in Afghanistan when NATO forces
begin to withdraw from the war-torn country.

Several pacts were signed on the occasion, including an inter-governmental agreement
on atomic energy cooperation, a road map for serial construction of Russian-designed
nuclear power plants at Kudankulam in Tamil Nadu and elsewhere in the country, and an
MoU on joint production of satellite navigation equipment for "Glonass", Russian
equivalent of the American global positioning system or GPS.

Both sides also finalised and signed 14 supplementary agreements pertaining to costing
and technical details of the 2.3-billion-dollar Admiral Gorshkov aircraft carrier, an
agreement for the purchase of 29 MiG-29K maritime fighter aircraft worth 1.6 billion
dollars, a protocol of cooperation between Gazprom and ONGC in hydrocarbon sector,
two pacts in the field of fertilisers and five in the diamond sector. Joint ventures in
pharmaceutical sector are under consideration.

In his statement after the talks, Prime Minister Singh described Mr Putin as "a great
friend of India".

"[He] has been the architect of the strategic partnership between India and Russia, and
we owe a deep sense of gratitude to him for bringing our two countries so close to each
other," Dr Singh said.

He added: "[Our] relations with Russia are a key pillar of our foreign policy, and we
regard Russia as a trusted and reliable strategic partner. Ours is a relationship that not
only stands independent of any other, but whose significance has grown over time."

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