India eyes deals with Russia's Rosneft, other firms

By Al Mayadeen English
Source: Agencies
9 Jul 2024 23:23

After Russian President Vladimir Putin and Indian Prime Minister Narendra Modi met in Moscow in the past week, the two countries agreed to raise bilateral trade to $100 billion by 2030.

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Indian Prime Minister Narendra Modi, left, and Russian President Vladimir Putin visit Atom pavilion at the Exhibition of Achievements of National Economy in Moscow, Russia, July 9, 2024. (AP)

At a news conference on Tuesday, Foreign Secretary Vinay Mohan Kwatra announced India's plans to enhance its energy partnerships with Russia, including potential agreements with Rosneft and other leading Russian oil firms.

According to the diplomat, these plans are in line with efforts to increase bilateral trade.

"The two leaders when they spoke of cooperation in the [energy] sector, they did focus on how exactly to strengthen that partnership," Kwatra said.

"[And] in the similar vein, how exactly India in particular through the government-to-government route could also build partnerships with Rosneft and other energy entities," he added.

What is in the India-Russia agreement?

After Russian President Vladimir Putin and Indian Prime Minister Narendra Modi met in Moscow in the past week, the two countries agreed to raise bilateral trade to $100 billion by 2030, up from approximately $65 billion currently.

Measures will include balancing trade, reducing non-tariff barriers, and exploring a Free Trade Agreement between the Eurasian Economic Union and India.

In the realm of energy cooperation, the focus includes nuclear energy, oil refining, petrochemicals, and collaboration in energy infrastructure, technologies, and equipment.

Russian entities, including Rosneft, have a majority stake in India's private refiner Nayara Energy, while Indian companies are involved in Russian oil exploration and production projects in the Far East.

India's ONGC Videsh is in the process of seeking formal approval from Russian authorities to maintain its 20% stake in the Sakhalin 1 oil project.

Beyond energy, Kwatra highlighted India's significant role as a purchaser of Russian fertilizers and expressed the country's commitment to strengthening relations with Moscow to ensure the security of crop nutrients.

Modi and Putin also agreed to explore the establishment of a bilateral settlement system using national currencies, as stated in the joint statement.