Ahead of his visit
to India, Vladimir Putin gave an interview to Rossiya Segodnya
International News Agency and IANS News Agency.
October 13, 2016
09:40
Question: Russian-Indian
relations can be qualified as privileged strategic partnership.
As to the economy, a perfect example of this point is
cooperation in atomic energy, I particular, the construction
of the Kudankulam NPP. What other areas of Russian-Indian cooperation
can speak to a similar success?
President of Russia
Vladimir Putin: India is Russia's especially privileged strategic partner.
Cooperation between our countries is making good headway in all areas
on the basis of strong traditions of friendship, trust
and mutual respect.
Russia and India are
allies in ensuring strategic security and stability,
and building an equitable world order. We work closely within
the leading multilateral organisations such as BRICS, the G20,
and the UN.
This October marks 16 years
of the signing of the key instrument
for Russian-Indian relations, the Declaration on Strategic
Partnership. We have done much to further the entire mechanism
of bilateral ties during this period.
The two countries
maintain active political dialogue, with summits taking place every year.
The Intergovernmental Commission on Trade, Economic, Scientific,
Technical and Cultural Cooperation is also working efficiently. Our
foreign ministers, heads of staff of security councils and line
ministries keep in touch on a regular basis. There is
a gradual increase in inter-parliamentary, interregional, business
and humanitarian exchanges. We have developed a strong legal
framework featuring over 250 agreements.
India has been
and remains Russia's major foreign trade partner. Even though in 2015
trade between the countries dropped by 7.8 percent, together with our
Indian partners, we are resolved to overcome the negative trend,
which, in our opinion, is largely associated with volatility
on the global markets and in exchange rates. Especially
since our commercial exchanges are mutually beneficial and their structure
shows the complementarity of the two economies. Chemicals
and engineering products account for a considerable share
of Russia’s exports and the exports from your country.
The energy sector plays
an important role in trade and economic cooperation between
Russia and India. Construction of the Kudankulam NPP is
the largest long-term project. In August 2016, Prime Minister Narendra
Modi and I took part in a ceremony dedicated
to the handover of the first unit
of the Kudankulam NPP to the Republic of India.
The second unit will be put into operation in the near future.
Operation of the first and second units at their rated
capacity will significantly increase the energy supply in India
and strengthen its energy security.
Rosatom State Atomic Energy
Corporation and the Nuclear Power Corporation of India began
preparations for the construction of units 3 and 4. Works
are being carried out according to the agreed schedule.
The project is implemented with funding from the Russian Federation:
the government loan stands at $3.4 billion, or 85 percent
of the total value of contracts concluded with the Russian
organisations. We are now working on the localisation of component
manufacturing in India. We began assessing the construction
of nuclear power plants at other sites in India. Technological
cooperation in the field of uranium enrichment is being
established.
We are strengthening
bilateral cooperation in the conventional energy sector. During
the St Petersburg International Economic Forum held in June 2016,
Rosneft and an Indian consortium signed a contract
for the sale of 23.9 percent of shares in Vankorneft,
which owns the Vankor field in the Krasnoyarsk Region. Besides,
Rosneft sold a stake of shares in the Taas-Yuryakh
Neftegazodobycha, a company developing a field in East Siberia,
to Indian companies.
Improving the structure
of goods turnover by increasing the deliveries of high
technology products and developing industrial cooperation is
a topical issue. Well-known Russian companies, such as Silovye
Mashiny, Gazprom, Stroytransgaz, Novolipetsk Steel (NLMK), Uralmashzavod, SIBUR
Holding, Mechel, KAMAZ and many others, are operating in the Indian
market.
Implementation of large
promising projects is underway in engineering, chemical and mining
industries, aircraft engineering, pharmaceuticals, medicine, nano-
and biotechnology. Cooperation in finance and banking, which
involves, among others, the VTB Bank and Sberbank of Russia, is
advancing. It is obvious that the Russian companies see real prospects
and high attractiveness of the Indian market.
Our countries actively
collaborate in the military technical field. Russia remains
in the lead in terms of both direct supplies of most
advanced weapons and military equipment and conducting joint
researches with India, as well as producing goods for military
purposes. The construction of the BrahMos supersonic cruise
missile and the development of a new, fifth generation
fighter aircraft are mong the successful joint projects.
Let me add that many
of the Russian projects in India not only have commercial importance
but also play a significant social and economic role
for the economies of the two countries. They harmoniously
fit in the new Indian industrialisation programme proposed by Mr
Modi.
Question: The level
of investment cooperation is one of the criteria
of reliable bilateral relations and trust between countries.
In this regard, what steps are planned to be taken in view
of the upcoming Russian-Indian Summit? Will the plans
to privatise Russian companies influence the development
of the investment partnership between Russia and India?
Vladimir Putin: Naturally,
during our visit to India we hope to give fresh momentum
to the bilateral trade and economic ties, given that companies
of both countries are interested in implementing new mutually
beneficial projects. Russia's cumulative investments in India amount
to about $4 billion, while Indian businesses have invested
in the Russian economy twice as much – about $8 billion.
I am convinced that
Russia and India can considerably boost bilateral investments.
To stimulate mutual investments, we plan to discuss with our Indian
partners the possibility of updating the bilateral Agreement
for the Promotion and Mutual Protection of Investments. We
encourage the development institutes – the Russian Direct
Investment Fund and Vnesheconombank – to be more active
in providing financial support for investment activities
of the Russian companies.
A Working Group
on Priority Investment Projects has been established and is now
successfully operating within the framework of the Intergovernmental
Commission. Line agencies of the two countries, jointly with
the India–Russia Forum on Trade and Investment, are engaged
in a rigorous selection of promising business initiatives and work
on identifying and removing barriers to the free flow
of goods, capital and services.
To date, 20 priority
projects have been selected – 10 Russian projects and 10 Indian
ones – in such spheres as transport engineering, chemical
industry, aircraft industry and pharmaceuticals. They include
the construction by the SIBUR Holding of a butyl
rubber facility with an operating capacity of 100,000 tonnes per year
in the city of Jamnagar, and production by Russia’s
Lighting Technologies Company of lighting equipment for general
and specific purposes in the city of Jigani, Karnataka
state. The Sistema Financial Corporation is developing a ”smart city“
model in India. Dauria Aerospace is working on the deployment
of the NextStar telecommunication satellite constellations
in the geostationary Earth orbit. The two countries’ governments
will assist in the implementation of these projects.
Question: BRICS summits
have been already included on the global agenda, and are held
regularly. Yet, the final declarations only slightly differ from summit
to summit. What do you think is essential in order to make BRICS
cooperation more substantial, effective and concrete?
Vladimir Putin: BRICS
is one of the key elements of the emerging multipolar
world. The five countries have consistently reaffirmed their commitment
to the fundamental principles of international law
and promote the central role of the United Nations. Our
countries reject the policy of coercive pressure
and infringement upon the sovereignty of other states. We take
similar stances on urgent international issues, including the Syrian
crisis and the Middle East settlement.
This is why
the summits’ final declarations, and the Goa Summit will be no
exception to this rule, reaffirm our shared commitment
to the fundamental principles of inter-state communication,
particularly, to the observance of international law with
the central coordinating role of the UN. With some Western
countries attempting to promote their unilateral approaches, this position
becomes even more relevant.
Traditionally,
the declarations of BRICS leaders outline fundamental consensus-based
stances on a wide range of issues and identify short-term
development goals for the five nations that would serve
as a target for follow-up steps aimed at strengthening
strategic partnerships among our countries in various spheres.
As for rendering
practical interaction among the five countries more substantive,
I would like to stress that today, there exist more than 30 formats
for inter-agency cooperation in the political, economic, humanitarian,
security and law enforcement areas.
The establishment
of the New Development Bank (NDB) and the BRICS Contingent
Reserve Arrangement with the total capital of $200 billion is
a concrete example of this cooperation. I am convinced that, as the bank
gets stronger, its output will only increase, including by means
of projects that promote integration among the BRICS countries.
The NDB started its work in 2016, having approved the first
projects in all five countries. The priority at the current
stage is renewable energy. In Russia, this implies the construction
of small 50 MW hydropower plants in Karelia worth $100 million.
Our countries actively
cooperate within the Group of 20, including under the current
Chinese chairmanship. Thus, the BRICS countries have undertaken a commitment
to implement the Action Plan on Base Erosion and Profit
Shifting. We seek to systematically converge our stances
in the WTO with a view to improving the rules
and spurring up multilateral negotiations within the organisation.
This is why I think the cooperation
within BRICS has already begun to yield practical results. It is essential
to continue work on consolidating these results
and on identifying areas of common interest.
The participants
in the BRICS Summit in Goa will look at the initial
results of implementing the Strategy for BRICS Economic
Partnership adopted in Ufa and finalise the draft of BRICS
Roadmap for Trade, Economic and Investment Cooperation until 2020. We
intend to establish new formats and mechanisms to cooperate with
our partners, in which concerted measures aimed at developing our
ties in various fields will be elaborated. At the same time we
intend to focus on addressing issues related to strengthening
international security and stability, enhancing the competitiveness
of our economies and the promotion of international
development.
We also support
the initiatives put forward by the Indian chairmanship
in such fields as BRICS collaboration in agriculture, railway
transport, sports, tourism and building people-to-people contacts.
Question: What
proposals are you going to make at the forthcoming BRICS Summit
and what do you expect from this meeting? What do you think
the participants in the association could claim as their
achievements after this meeting? What other projects beside the New
Development Bank, could serve as a proof that this cooperation format
is valuable?
Vladimir Putin:: First
and foremost, I would like to express gratitude to Indian
leadership who has, invariably throughout its chairmanship in BRICS,
focused on strengthening and consolidating the strategic
partnership within our association. I am convinced that the Summit
in Goa that will be held under the slogan of continuity
and innovation, will be very fruitful.
For our five countries’
leaders this meeting will be a good opportunity to harmonise our
positions on key issues on the international agenda. We are
determined to cooperate in the fight against terrorism, drug
trafficking and corruption. We will also contribute to settling
conflicts and ensuring international information security. All of us
remain concerned over continued lack of stability in the global
economy. Together with our partners we will reflect on what can be done
to further unite our efforts in order to address these
challenges.
We also expect that
the BRICS Summit in Goa will open new opportunities for economic
and humanitarian cooperation.
We will certainly discuss
the issues of project funding through the New Development Bank
and of a full-fledged launch of the BRICS Contingent
Currency Reserve Pool. This implies an exchange of views
on the ongoing work involving high representatives on security
issues, relevant ministerial meetings, expert interaction formats,
the BRICS Network University, and the Business Council.
For instance, preparations have now been completed
for the signing of memoranda of cooperation among
the customs services and the diplomatic academies of our
states, as well as of creating a platform for BRICS
agricultural research.
We are grateful to our
Indian partners for ensuring the continuity of the BRICS
agenda following the Ufa Summit held in Russia in July 2015.
The implementation of the adopted Ufa Declaration
and Action Plan has started. The Indian partners have also proposed
a number of initiatives that we plan to consider at the Summit.
As for the specific
Russian proposals for the Goa Summit, let me remind you that, during
our presidency, the Strategy for Economic Partnership was adopted,
which covers the promising areas of cooperation among the five
countries. An action plan for its implementation is currently being
prepared. The Russian side has proposed more than 60 projects, a kind
of a road map, which could be implemented in cooperation with
its BRICS partners (with a single partner or with all of them).
I believe that if we manage to jointly determine partners
for the implementation of these projects, it will be
an important step towards the modernisation of our countries’
economies.
Russia also supports
enhanced cooperation in electronic commerce (including analysis of key
barriers between the countries in this sphere, development
of the best regulatory practices, etc.), in trade facilitation
(with involvement of the Eurasian Economic Commission), supporting
small and medium-sized businesses (launching a web portal for BRICS
small and medium-sized businesses), and protection
of intellectual property.
Question: You often
mention the necessity to interlink integration processes,
particularly those of the EAEU and the Silk Road Economic
Belt. How could the current BRICS format be used to implement such
initiatives?
Vladimir Putin: The global
economic and financial situation remains difficult, with
the consequences of the global financial crisis still
persisting. It is therefore regrettable that certain countries seek
to solve the problems that have built up by introducing
protectionist measures and trying to engage in restricted
non-transparent projects, such as the Trans-Pacific Partnership
or the Transatlantic Trade and Investment Partnership. Russia,
just like all its BRICS partners, remains committed to shaping open
non-discriminatory economic areas based on the WTO principles.
Let me remind you that
on July 9, 2015, Ufa hosted an outreach meeting with
participation of heads of state of the Eurasian Economic
Union, the SCO, as well as the SCO observer states. Among
other things, the participants discussed the issue of major
regional and transregional infrastructure projects.
In this context, we
also proposed that work on establishing the Eurasian Economic Union
should be integrated with that on the Silk Road Economic Belt. This
process could eventually provide a basis for the Big Eurasian
Partnership that would involve a wide range of states
of the Eurasian Economic Union, the SCO, and ASEAN. We
expect that such partnership will be open for accession by all
countries concerned and will build on the principles
of transparency and mutual respect. The BRICS cooperation
potential may also be used to implement this initiative. We look forward
to the support from India, which is earnestly interested in this
proposal.
We are sure that this topic
will be further discussed at the BRICS and BIMSTEC heads
of state meeting in Goa.
Question: When you
think of the territory from India to the Russian border you
realise that the situation there is rather complicated, with numerous
problems and contradictions. What challenges and issues, in your
opinion, will be the most important and acute for the countries
of the region in the next ten years?
Vladimir Putin:The situation
on the territory between India and Russia remains tense.
In particular, the developments in Afghanistan still raise
concern. Decisive actions are required to help that country in dealing
with such challenges and threats as terrorism, extremism,
and illicit drug trafficking. Russia and India share the need
to support national reconciliation efforts under the international
law and are interested in deepening constructive multilateral
cooperation for the purposes of assisting Afghanistan
in solving the issues of national security, building
counter-narcotics capacity, ensuring social and economic development,
and enhancing interconnectivity.
In more general terms,
our country is willing to develop such formats of interaction
in the above-mentioned region that would allow responding swiftly
to emerging security challenges, jointly seeking for ways
to address potential threats. In our opinion, the Shanghai
Cooperation Organisation is to play the major role in it; it is
constantly expanding its geography – for example, India
and Pakistan are now joining the Organisation. The SCO is
stepping up its efforts aimed at building trust, strengthening genuinely
collective efforts in the area of crisis response,
and developing multifaceted cooperation.
The fact that Russia,
with support of its partners, is actively promoting
the above-mentioned projects to create a common economic space
in Eurasia also contributes to resolving the differences. Such
‘integration of integrations’ based on the principles
of transparency and taking into account the interests
of all national economies will allow integrating the region into
common development, and will strengthen its stability.
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