India-Russia: News & Analysis

renukb · Post by **renukb** » 20 Nov 2008 10:54

Medvedev's December visit: Strangely in the Indo-Russian relationships thus far, I am seeing a change when a Ru dignatory visits India. For the first time, this time around the focus is not the defense deals but rather trade, and bilateral relationships. Definitely there is something going on at the very top levels between India and Russia. It looks like India and Russia need to mend their courses and get along.

renukb · Post by **renukb** » 20 Nov 2008 11:06

Will Russia cancel aircraft carrier deal with India?
2008-11-19

As the Sevmash shipyard in Severodvinsk, Arkhangelsk Oblast, is preparing for the moving of the aircraft carrier Admiral Gorshkov from the dry dock to the water, tough bargaining over sales conditions now face Russian and Indian defence officials.

Russia is significantly toughening conditions for the sales of the vessel, which originally was to be handed over the Indian Navy in 2008. A contract on the sales of the Admiral Gorskov was signed in 2004. However, the Russian shipyard has been unable to complete the vessel in line with contract time period and contract price.

Now, the Russians demand more time and 2 billion USD extra money for the job. The new contract conditions spark speculations that Russia might actually try to keep the vessel in its own fleet.

According to Russian defence plans, the country will need to build several aircraft carriers over the next ten years. The sales of the Admiral Gorshkov to India come highly inconvenient for the current Russian defence establishment.

According to The Times of India, the Indian government is willing to pay "substantially more" for the 44,570-tonne Gorshkov, which is crucial to its plan of having two operational `carrier battle-groups' by the middle of the next decade. However, the 2 billion USD cost escalation which is being quoted by Russia is proving a little hard to swallow, the newspaper writes.

Analysts say that Russia is "arm-twisting" India on the matter.

Under the original deal, India was to get a fully-refurbished Gorshkov -- renamed INS Vikramaditya after India paid an initial 500 million USD -- with 16 MiG-29K fighters by August 2008. Russian Embassador to India, Vyacheslav Trubnikov, says to The Times of India that cost escalation is unavoidable due to the "rise in prices of everything", while denying Russia was trying to squeeze India on the matter.

RajeshA · Post by **RajeshA** » 20 Nov 2008 13:42

If Russia is keen on building a strategic relationship with India, Russia should probably look at reasons why India found it so easy to upgrade India's relations with the USA from cold to strategic. The reason is a strong expatriate or immigrant Indian community in the host country. Same is the case for many other countries. With Great Britain, Fiji, Mauritius, Trinidad & Tobago, and Guyana India already has very good relations. When Canada's, Australia's, New Zealand's governing elite decide that they would want to improve their relations with India, these relations can warm up very quickly. It is not that this is the only way to have good solid strategic relations, but having Indian diaspora in the country certainly is the short but sure route to that end. To some extent the lack of a language barrier also plays a part, but considering that India is a multilingual country, perhaps Indians do not see this to be too much an impediment.

Russia should rethink its policy on migration. Russia's Far East is desolate with few people living and working there. Russia could ask Indians to migrate there and help Russia get more out of the land, in terms of agriculture, mining, industry, construction and business. Indian migration can make small Russian communities self-sustainable. These can become a new infusion of energy and cultural diversity. Of course Russia can demand that the migrants learn Russian and get integrated into the Russian society. It would help Russia increase its GDP. It may also help Russia to counter the influx of too many Chinese, which can become a security issue, if it continues unabated. Indians from far away India will never be a security issue. The only condition is that any Indian, who migrates, be treated with dignity and respect and his personal security be assured, especially in view of the nationalistic feelings in Russia at the moment. Those nationalistic constituency should be explained, that Indians are there for Russian progress (and security).

A vibrant Indian diaspora in Russia would do wonders with Indo-Russian relations. It would go beyond simply this buyer-seller relationship, where Russia sells India defense items, nuclear reactors, oil and gas. That may not be sufficient for a strategic partnership, because Indians like to feel the soul of our friends in order to reach the depth in a relationship. At the moment, Indians just perceive purely commercial transactions and nothing more. We don't know about the Russian fairy tales, we don't know about Russian literature, about the Russian melancholy, the Russian love of Vodka, the Russian music, both folk and classic, about the new Russian youth, about Russian thinking, about Russian sense of its place in the world. Indians don't feel Russia any more.

If Russia wants to be an active power with national interests in the Indian Ocean Region and lower Central Asia, then Russia needs India. If Russia wants to be up to date with the activities of Chechens separatists spread around in Asia, India could help with such intelligence. As and when the UN Security Council is widened, India can provide Russia with further support. Russia would want to be befriended with the next third largest economy in the world.

The romanticism of socialism and the protective blanket of Soviet Union over India, while we were still a baby and despised by the imperialists, had a strong lure on the Indian mind. The world has moved on from there. India is now a grown up and wants a grown-up relationship with Russia, strong but grown-up. A strong relationship can however only grow, if Russia is willing to facilitate that our hearts meet. The relationship should be built upon the Russian and Indian civil society. Only then will it be truly strong.

renukb · Post by **renukb** » 20 Nov 2008 17:55

Russia, India to hold joint naval drills in Jan. 2009
14:03 | 20/ 11/ 2008
http://en.rian.ru/russia/20081120/118428187.html

VLADIVOSTOK, November 20 (RIA Novosti) - Russia and India will conduct joint naval exercises in the Indian Ocean in January next year, a spokesman for Russia's Pacific Fleet said on Thursday.

INDRA is a biennial Russian-Indian exercise aimed at practicing cooperative engagement to enforce maritime law and counter piracy, terrorism, and drug smuggling. It is the fourth such exercise since 2003.

"A task force from the Pacific Fleet, led by the Varyag missile cruiser, will leave Vladivostok in December and set sail for the Indian Ocean to participate in joint drills with the Indian navy," Capt. 1st Rank Roman Martov said.

He said that the task force will also conduct joint exercises with a task force from Russia's Northern Fleet, led by the Pyotr Veliky nuclear-powered missile cruiser, which will arrive in the Indian Ocean after joint drills with the Venezuelan Navy in late November.

"Following the exercises, the Russian warships will pay friendly visits to several ports in India and China," the spokesman said.

Martov also cited Vice Admiral Konstantin Sidenko, commander of the Pacific Fleet, as saying that Russian warships from the fleet will make several long-range training sorties in the South Pacific and Indian oceans in 2009, and participate in a number of exercises involving live-firing drills.

Russia announced last year that its Navy had resumed and would build up a constant presence in different regions of the world's oceans.

renukb · Post by **renukb** » 20 Nov 2008 17:59

Putin: Russia will come out stronger from crisis
By NATALIYA VASILYEVA – 38 minutes ago

MOSCOW (AP) — Russian Prime Minister Vladimir Putin promised Thursday the country would emerge stronger from a world economic crisis he said was triggered by U.S. recklessness.

Putin said the global financial system had made the crisis "impossible to avert."

"Cheap money doping and mortgage troubles in the United States have caused a real chain reaction, paralyzed the global financial system and brought global distrust to the market," Putin said, addressing a meeting of United Russia, the dominant pro-Kremlin party he leads.

The prime minister said Russia had prepared for the crisis in advance through economic growth and abundant currency reserves — benefits of the oil-driven economic boom during his eight-year presidency.

But he acknowledged that "low diversification of the national economy, its low efficiency and the insufficient development of the financial system" made Russia's economy "extremely dependent on global factors."

Despite that vulnerability, Putin assured the nation it would emerge stronger from the turmoil. "We can and must come out of the global instability stronger and more competitive," he said.

Putin promised that Russia's currency reserves generated during oil boom "will ensure the stability of the Russian budget system for the coming years, with no dependance on world oil prices or traditional export goods."

"We'll do all it takes to make sure the collapse of the previous years does not repeat in our country," he said.

The party congress gave Putin a chance to take center stage and cast himself as an indispensable leader at a difficult time. Putin's 45-minute speech dwarfed President Dmitry Medvedev's much shorter opening remarks, and his mix of sweeping statements and detailed plans seemed designed to assure Russians that he is hard at work to protect them from the effects of the crisis.

Putin came up with an array of tax breaks to support the real economy.

He admitted that the crisis may leave thousands of people jobless as weaker global demand for metals and other goods is affecting Russian producers.

"In these conditions, we must be prepared for structural transformation in the labor market," Putin said. He also called for an increase in unemployment payments as of Jan. 1.

On the international front, Putin said Russia will provide up to $1 billion to the International Monetary Fund to add to reserves intended to help countries hit by the crisis. Putin added that Russia would also provide credits to China and India to encourage them to buy Russian goods, and provide Belarus with a $2 billion loan.

Associated Press Writer Steve Gutterman contributed to this report.

renukb · Post by **renukb** » 20 Nov 2008 18:03

Russia to provide credits to India, China

MOSCOW: Russia will provide credits to India and China for purchasing its machinery and equipment as part of a stimulus package to back the domestic industry amid the global financial crisis, Premier Vladimir Putin said.

"We are ... allocating credits to China and India for purchasing the Russian equipment. By doing this (we are) ensuring jobs and income for our enterprises and domestic manufacturers," Putin said, addressing the 10th Congress of the ruling United Russia party.

He, however, did not elaborate the amount and the projects for which the credits will be offered to India. It may be possible that Moscow could provide credit for the construction of four more nuclear reactors, including two new third generation units of 1200 MWTe at Kudankulam nuclear power plant. An agreement to this effect is to be signed next month during President Dmitry Medvedev's New Delhi visit.

"We are behaving with responsibility with our partners, taking direct part in the international anti-crisis efforts as well as supporting our allies on the bilateral basis," Putin said, also announcing transfer of up to USD 1 billion to IMF.

The Russian Prime Minister described the situation as serious, saying that "what started as financial crisis has now transformed into global economic crisis." He proposed a set of measures, including tax cuts and other incentives, to focus on the development of "real sector of economy."

Neela · Post by **Neela** » 20 Nov 2008 19:52

Folks , with oil prices down to 2 year lows ( $52 today ) the negotiation stance of the Russians might weaken a little.

I am hoping for some good news on the Gorky soon !

NRao · Post by **NRao** » 20 Nov 2008 20:59

WSJ, yesterday, reported that oil price could go down to as much as $30.00!!!!!!!!!!!!

India SHOULD use the RU Amby's statement that it is business and that the new cost is the cost of doing business. The reverse is true too.

Also, the cost of doing business should be declining in the West too. Boeing is laying of 800 in the defence sector. More companies should follow.

Now, ASSUMING India will have the funds, India should be in a very good position - RU or West - I would imagine. The issue could be timing. Even with funds India needs these toys on time.

Raj Malhotra · Post by **Raj Malhotra** » 21 Nov 2008 02:39

India should ask UK to build it a copy of its new carrier. It will be cheaper in long run and with falling prices/good negotiations it may be better deal compared to Gorky porky

prabir · Post by **prabir** » 21 Nov 2008 03:56

This makes sense... because of some amount of political posturing is needed to convey the right message.

Sanku · Post by **Sanku** » 21 Nov 2008 10:40

Russia-India joint interests?

The corner stone of Geo-politics is shared interests and the talk on now are whether Indian and Russian interests are drifting apart -- well at least to me that does not seem to be the case and I wanted to put down some thoughts on the same

1) While the focus seems to be on things going wrong -- let us also for a moment look at things going right

; the list still continues to be a long one -- many examples (in on particular order) include -- help with Chandrayan lander; Bramhos; The Talwar family of frigates and their follow ons. T 90 deliveries on schedule and with quality. Submariner training on Nuclear vessels; Su 30MKI yada yada yada.....

So the point is while there is ALWAYS tension and friction between two giants which interact so closely together; the moments of friction should not take centerstage to the extent that all the good work get marginalized. Focusing only a specific while not looking at the context is what DDM does; and does not suit BRFites

2) Overall geo-pols -- I would actually argue that in reality the concerns that Russian's and Indians face are the same and not different. Let us list
1) A rising China -- destablizing the region. (even if for Russia the threat is not immediate)
2) A energy bond -- we the consumer and they the provider. We can both gain big time by being good clients and good suppliers and keeping the SA robbers out of the loop.
3) Shared geo-pol interests of stability in Afghanistan and CAR and a check on Pak-Chin axis -- note this one of the cases where the western concept of stability and Indo-Rus concept of stability are very divergent.
4) Interest in a multi-polar world
5) A WTO which is fair to all parties (unlike a WTO where the western bloc tends to skew the rules away from us)
6) No history or reason of conflicts on geo-pol issues.
yada yada yada

Now the big question is why despite
1) The shared history of successfully working together
2) Continued Russian support in UN even today
3) All the future indicators actually showing an alignment of interests rather than a divergence thereof.

Do we have perceived cooling of relationship -- here we dont have to do the tough thing of making a new friend merely keeping an old one.

In my opinion as stated many times there is more here than meets the eye -- after all a relationship is nurtured by BOTH parties -- and it is entirely possible that the cooling was started by top level neglect of crucial points. We have often seen that the helmsmen of GoI often have a different understanding of Indian interests than is commonly understood and is seen on BRF. We have seen this in nearly every case that has come up for examination -- why would it be a stretch of imagination of extrapolate the same in this case as well?

arnab · Post by **arnab** » 21 Nov 2008 11:30

Sanku wrote: 2) Overall geo-pols -- I would actually argue that in reality the concerns that Russian's and Indians face are the same and not different. Let us list
1) A rising China -- destablizing the region. (even if for Russia the threat is not immediate)
2) A energy bond -- we the consumer and they the provider. We can both gain big time by being good clients and good suppliers and keeping the SA robbers out of the loop.
3) Shared geo-pol interests of stability in Afghanistan and CAR and a check on Pak-Chin axis -- note this one of the cases where the western concept of stability and Indo-Rus concept of stability are very divergent.
4) Interest in a multi-polar world
5) A WTO which is fair to all parties (unlike a WTO where the western bloc tends to skew the rules away from us)
6) No history or reason of conflicts on geo-pol issues.
yada yada yada

Now the big question is why despite
1) The shared history of successfully working together
2) Continued Russian support in UN even today
3) All the future indicators actually showing an alignment of interests rather than a divergence thereof.

Do we have perceived cooling of relationship -- here we dont have to do the tough thing of making a new friend merely keeping an old one.

In my opinion as stated many times there is more here than meets the eye -- after all a relationship is nurtured by BOTH parties -- and it is entirely possible that the cooling was started by top level neglect of crucial points. We have often seen that the helmsmen of GoI often have a different understanding of Indian interests than is commonly understood and is seen on BRF. We have seen this in nearly every case that has come up for examination -- why would it be a stretch of imagination of extrapolate the same in this case as well?

I agree that India and Russia have had a successful history of co-operation in the areas you mentioned. The main issue here is permanence of self interest. The fact that Russia has helped us in some areas does not give her the right to s#rew us in others. As it appears, the USSR did not have a problem in cultivating a 'warm and nurturing' relationship as long as it was known who wore the pants in the relationship. Now that this issue has blurred substantially (and given recent oil price falls, stock market collapse, inflation in Russia and aging demographics - it is going to continue to blur), Russia is not entirely comfortable with the change. Unfortunately long association with oligrachs and an ex-kgb at the helm have left them devoid of the ability to 'nuance' their response. Their response is wonderful in dealing with Sashkavelli's of the world but in the Indian context it just looks plain silly.

re our shared Geo-pol interests, I think that it will prove to be a chimera. Russia has already solved its border issues with China and if oil prices continue to fall - China has deeper pockets than India to buy their products.

Energy bond to keep out 'SA robbers' sounds funny in the context of Gorky and Nerpa

I would rather have a robber who delivers insted of reneging on a deal (too close to the paki F-16 saga. A forum senior mentioned that it is inevitable that India's future would be like pakis - don't suppose he imagined this to happen so quickly or from that end)

Stability of Afghanistan CAR - here too Russia is becoming pragmatic. It is allowing German supplies to pass into Afghanistan through its territory.

Finally a history of lack of conflicts does not ensure that there won't be future ones. Specially where a 'future' envisages an alteration in balance of power. If India's growth path does go the way the optimists think that it would, she would eclipse Russia sooner - So the fear factor is greater for a nationalistic Russia.

Finally, regarding the 'more to meets the eye' comment. What can one say

but speaking historically - a vote in the forum on the nuke deal showed BRF's 'interests' to be closely aligned with that of the Government's. The rest as we have seen - were basically chicken little kind of arguments. Your pointing a finger at GOI presumably due to your political leanings is fine, but as I believe - a stupid patriot is as dangerous as a cunning enemy.

So bottom line - yes Russia has been a good partner. We should continue to do business with it. We need to make sure that we get our act together in terms of professionally writing the contracts. No more - we are 'bhai bhai' onlee. So trust - but verify.

Have a pleasant weekend

Sanku · Post by **Sanku** » 21 Nov 2008 11:48

arnab wrote:...

Arnab; with all due respects if you are comparing F16 and Pakistan with India and Gorky -- there are serious obvious limitations to your understanding of whats happening here.

I would request that you spend some time doing some basic research on how things really are rather than making statements which come across as flame baits at worst and seriously uninformed at best.

putnanja · Post by **putnanja** » 21 Nov 2008 13:02

The Russians might be trying to shaft us in the defence deals, but that shouldn't mean that we should keep them at arms length. With Clinton taking over DoS in US, and Obama's advisers trying to push India to come to an agreement with TSP on kashmir, it will be beneficial to have close ties with someone who has veto power in UN. Russia has helped us in the past and there is no reason why we should antagonize them now with the changing geopolitical equations. TSP is getting pushed into a corner on all fronts- security, economy etc. They might try release steam by opening front against India. Will give them reason to not do more on their western front, and will rally up their depressed population. With the incoming Obama team putting out feelers on pressurizing India to make concessions to TSP, a manufactured crisis with India will put the spotlight on Kashmir issue at a time other actors are distracted by financial turmoil. Never underestimate the paki's ability to resort to underhanded means to get money and attention when others are not paying much attention to it. 9/11 proves that very well.

In these tough times, it might be useful to have the bear close to us.

neerajb · Post by **neerajb** » 21 Nov 2008 13:14

Rahul M wrote: They will like to have the nerpa till a sizable # of yassens join the force but it would still not be worth a major international incident with a prime customer that gives the russi industry a very bad name indeed. (don't ignore this point, a large portion of the international flanker orders came because of IAF's +ve feedback on the bird, not to forget the COPE exercises !)

Very true. It is reflected by the fact that Su-35 was kicked out of FX-2 of Brazil because of price jacking concerns. Apart from India, nobody wants to deal with the greedy russians and with this bitter drama, I believe, russia is further going to suffer in defence export.

Cheers....

Raj Malhotra · Post by **Raj Malhotra** » 21 Nov 2008 17:43

Relationships, marriages, friendships sometimes run their course and we have to grow out of them. Soviet Union was a good friend, Russia is not the same entity and India now must move on. Funding Russian arms industry and giving them exposure to western equipment, so that they can equip CHina & Pak is stooooopid. Say goodbye to gorky, T-90, PAKFA, akula and hello to IAC, Arjun, MCA, Sagrika etc

Suppiah · Post by **Suppiah** » 21 Nov 2008 18:12

We seem to take a lot of pride living in the 50s still assuming that every Russian loves Raj Kapoor movies and feels good about India and hence wants to give us friendliest terms on oil, gas, arms etc. and not ask for anything in return unlike the evil American who see everything as business and trade.

The newer generation Russians probably see us those relics of commie past and a relationship that was more of a burden than anything. I remember a Vietnamese colleague that once said her father used to love watching Indian movies, adding somewhat sarcastically that that was the only thing allowed in those days.

Yes, it is time to move on. Doesn't mean we antagonise them or rub them wrong way simply to prove a point, just that we stop dreaming that there is one superpower that is nice, friendly and warm to India(ns) and another that is unfriendly, mercenary minded and unreliable. They are all the same. Self interest comes first,second and third too.

Suppiah · Post by **Suppiah** » 21 Nov 2008 18:20

Having said that, perhaps the point has already gotten through - that we will buy from whoever is willing to sell and no longer look at price as only criteria. Now may be it is time to paddle back a bit, smoothen some ruffled feathers if any, without of course, sacrificing vital interests. Instead of aircraft carrier, we could buy other things, such as nuclear reactors etc.

prabir · Post by **prabir** » 21 Nov 2008 21:08

This makes sense. We have to be more business like in our diplomacy and not nostalgic about old times

RajeshA · Post by **RajeshA** » 21 Nov 2008 22:04

I don't see anything wrong in nostalgia.

When meeting other people, when you reminisce about the good old times, some of it, if not all of it, does rub onto others as well. They may not share your depth of nostalgia, at least as you express it, but they do recognize to some extent, that there is a certain feeling of affection from you towards them. This builds up some trust, and also blunts their hard-nosed negotiating demeanor to some extent.

Nostalgia is a good tool, as long as one is aware, that one should keep one's expectations low and heavens would not fall down if the other remains a tough bargainer.

Gerard · Post by **Gerard** » 22 Nov 2008 03:52

http://en.rian.ru/analysis/20081121/118451803.html

Some publications continue to cover the accident on the Russian nuclear-powered submarine Nerpa. Those who think it was not intentional think it is bound to undermine the international esteem of the Russian defense sector, which most Ukrainian experts have denounced as overblown.

"The accident has put the Kremlin in a fix, because President Medvedev and Prime Minister Putin have been doing their best to demonstrate Russia's military might. This is not true naval might, but only a pretense. All these warships are quite old, according to modern standards, and will have to be decommissioned soon. What will replace them? Russia has not had any luck with warships or submarines so far." (Den, November 12)

Other analysts write that the accident on the submarine, which Russia was preparing to turn over to India, was an act of subversion by an enemy of India.

"Many countries do not want India to have the submarine. The Nerpa is a powerful weapon, especially its Shkval anti-submarine nuclear-capable missiles and the Granit cruise missiles. The Kamov design bureau, which works for the navy, has even designed a foldout helicopter that can be ejected from the submarine with the pilot inside. The Nerpa was designed for special operations. It is easy to imagine against who India would conduct such operations, what with the two wars it has waged against Pakistan, and China and Japan growing stronger." (Gazeta po-kievsky, November 13)

Suppiah · Post by **Suppiah** » 22 Nov 2008 05:42

Yes, nostalgia is good and can be put to good use, if we know what its current market value is. The problem is with our media being either third rate DDM or commie propaganda trash most Indians do not have a realistic idea of what is what. To give an example there is this impression (created by Indian media) that Japs love Rajanikanth movies and he is popular there. Only 1% true, Jap girls watching Baba dancing is just one of many fringe cultures that is prevalent there, along with other such weird things as dyeing hair red and seeking s.x with africans. There are Japanese terms for each of these fringes. The mainstream of course, is very different.

Many of our babus and netas too fall for this kind of fake nostalgia and notions of grass root familiarity/friendship with all things India(n)

RajeshA · Post by **RajeshA** » 22 Nov 2008 14:13

Flux in Latin America Affects Russia’s Diplomacy by Simon Romero, Michael Schwirtz, and Alexei Barrionuevo: New York Times

In Guyana, Russia has warm ties with President Bharrat Jagdeo, who studied economics in Moscow when Guyana was ruled by socialists with close ties to the Soviet Union.

ezra · Post by **ezra** » 22 Nov 2008 14:36

Raj Malhotra wrote:India should ask UK to build it a copy of its new carrier. It will be cheaper in long run and with falling prices/good negotiations it may be better deal compared to Gorky porky

It should be remembered that India turned to the Soviet Union as a last resort after requesting Britian and the US to sell her naval vessels and being denied, (all that Britain offered to sell India was a WW2 submarine to be used for target practice, while the US declined to sell India an aircraft carrier or any other military equipment.

If the GOI wants the UK to build anything with a military use it should forward its request to the US.

The GOI should not discuss its current military purchases in the media. The value of Russia as a friend to India especially when needed should not be under estimated.

prabir · Post by **prabir** » 22 Nov 2008 20:44

Why not have collaboration with France to build the aircraft carrier. For right price, they can do it.

Gerard · Post by **Gerard** » 22 Nov 2008 23:47

RUSSIA WANTS NEW AIRBASE IN TAJIKISTAN

Dushanbe would prefer joint use of the airfield, but Moscow reportedly wants sole use, based on an offer to invest $5 million to complete construction work at Ayni (Nezavisimaya Gazeta, October 28). If Moscow succeeds in securing the exclusive use of Ayni for its air force, this will be a departure from the role and function of Russian air force deployments in Central Asia

renukb · Post by **renukb** » 25 Nov 2008 09:00

I tend to think that after Georgia, may be the US is throwing the monkey wrench in Indo-Russo military deals, especially in those of the A/C and nuke subs...

IMO, India better concentrate on building our own ADS and nuke subs.

Avinash R · Post by **Avinash R** » 25 Nov 2008 09:57

Russian nuke missile cruiser to join wargames with Indian Navy

Tuesday 25 November, 2008

Russia's most potent nuclear-powered heavy missile cruiser "Pyotr Veliky" will join the joint naval wargames with the Indian Navy in January, during which they will train on how to destruct aircraft carriers.

This will be the second time that "Pyotr Veliky" (Peter-the-Great), known as the 'Killer of Aircraft Carriers' will be in warmer waters of the Indian Ocean for large-scale exercises with the Indian Navy.

Besides naval warfare tactics, the two navies will also carry out joint manoeuvres aimed at curbing sea piracy, sea terrorism and anti-submarine warfare.

Pyotr Veliky, leading the task force of Russian North Fleet, will join the warships of Pacific Fleet in the Indian Ocean after wargames with Venezuelan Navy in Caribbean Sea.

It will cross Atlantic and traverse Cape of Good Hope on the southern tip of Africa for the 'INDRA-2009' wargames with the Indian Navy, Itar-Tass new agency today reported quoting Russian Navy spokesman Capt Igor Dygalo.

This is the fourth such exercise since 2003 under the inter-services cooperation agreement between the two countries.

New Delhi and Moscow held complex wargames in the sea of Japan last year.

Although combating piracy and terrorists on the high seas have been declared the main aim of the INDRA-series naval wargames, in the first such exercise the Russian and Indian navies had practised in the destruction of an 'enemy' aircraft carrier and anti-submarine warfare had been an indispensable part of the joint drills conducted every alternate year.

Philip · Post by **Philip** » 25 Nov 2008 12:34

More info on Russian sub modernisation/expansion.

http://www.upi.com/Top_News/2008/11/22/ ... 227335728/

New Russian sub ready for sea trials
Published: Nov. 22, 2008 at 1:35 AMOrder reprints | Feedback
SEVERODVINSK, Russia, Nov. 22 (UPI) -- The Russian navy is expected to start sea trials by the end of the year on the first of a new class of nuclear-powered submarines.

The nuclear reactor of the Yury Dolgoruky is to be turned on by the end of November, Nikolai Kalistratov, director of the Sevmash shipyard in northern Russia, said. The submarine was built at the Sevmash facility.

The Borey class submarine is 580 feet long with a hull diameter of 42 feet. It can go 1,500 feet below the surface and travel underwater at 29 knots.

The submarine carries a crew of 107 and up to 16 ballistic missiles.

Two more Borey class submarines, the Alexander Nevsky and Vladimir Monomakh, are already under construction. Under the current armament program, Russia plans to have five Borey submarines by 2015 equipped with a new class of missiles.

http://www.itar-tass.com/eng/level2.htm ... &PageNum=0

Missile submarine launched after modernization in Severodvinsk

22.11.2008, 12.49

ARKHANGELSK, November 22 (Itar-Tass) -- The Northern Fleet strategic-purpose missile submarine cruiser K-18 Karelia was launched in a ceremony at the Zvyozdochka ship repair centre in Severodvinsk on Saturday.

The nuclear-powered submarine was brought from the plant berth, and according to the shipbuilding tradition, a bottle of champagne was smashed against its side. The ship was also blessed in an Orthodox Church ceremony.

The submarine is 71 percent ready, the plant press service told Itar-Tass. The work will continue afloat near the plant moorage wall. The missile carrier will be put into service in 2009.

After the repair, the submarine will be able for ten years more to ensure Russia's national security, the plant press service noted.

About 100 tactico-technical improvements were carried out on the Karelia during the repair and modernization. The noise level was lowered, its capabilities to detect submarines were increased and its ability to survive and its nuclear security were enhanced. The missile complex was modernized. The submarine has RSM-54 Sineva missiles developed by the Makeyev centre. The missiles were placed in service in July 2007.

The submarine Karelia, Project 667BDRM, the code "Dolphin" (NATO designation Delta-4), was placed at the shipyard in November 2006. Before, four nuclear-powered submarines were repaired at the Zvyozdochka plant, and the sixth, the Novomoskovsk, will replace it at the berth.

The Karelia was built at the Sevmash shipyard in Severodvinsk and put into service in 1989. In 1994, the submarine went to the North Pole where it hoisted the Russian state flag and the Russian Navy's St. Andrew flag. Vladimir Putin aboard the submarine went to sea and was initiated as a submariner in April 2000.

The navy received a total of seven nuclear-powered submarines of the type between 1984 and 1992. K-18 was the sixth in the series. Such submarines are 167 meters long and twelve meters wide. The displacement is about 12,000 tonnes. The maximum depth of diving is 400 metres. The underwater cruising speed is up to 24 knots (44.5 km/h), the crew numbers 140 people. It is armed with 16 intercontinental ballistic missiles. According to the navy command, the 667BDRM project missile carriers are the main naval constituent part of the Russian strategic nuclear armed forces.

Avinash R · Post by **Avinash R** » 25 Nov 2008 14:01

Russia hopeful of building new nuclear power reactors in India
Nov 25, 2008

New Delhi, Nov 25 Buoyed by the approval of Nuclear Suppliers Group to trade with New Delhi, Russia today said it hoped to construct more nuclear power reactors in India.

"I'm extremely happy that this area of cooperation between India and Russia have been given a new opportunity after the decision was taken by the Nuclear Supplier Group," visiting Russian Energy Minister Sergey Shmatko told reporters here.

"We expect the inter-governmental agreement on construction of additional units at the Kudankulam site as well as other sites in India to be signed in the near future," he said.

Russia is to build four nuclear power reactors in India.

"Russia and India have excellent prospects of cooperation in the nuclear area and this cooperation is very multi-faceted.

"I believe that Russia and India have very good opportunity for future cooperation based on the results of our cooperation at Kudankulam site where we have been able to acquire large expertise by working together," he added.

prabir · Post by **prabir** » 26 Nov 2008 22:42

We should have contract non-performance clauses with incentives as well as penalties.

renukb · Post by **renukb** » 28 Nov 2008 09:32

Brazil, Russia want summit with India, China
http://www.google.com/hostednews/ap/art ... wD94MRML00

By SILVIA IZQUIERDO – 1 day ago

RIO DE JANEIRO, Brazil (AP) — Russia and Brazil agreed Wednesday to meet with India and China next year to create a new global financial architecture — a reflection of how economic power is shifting from the United States and Europe.

Brazil, Russia, India and China — emerging markets collectively known as the BRIC nations — "represent a powerful force," President Luiz Inacio Lula da Silva said as he stood with Russian President Dmitry Medvedev, who agreed to host the 2009 summit.

Silva is pushing for big developing nations like Brazil to have a major role in drawing up new regulations for international finance and for a greater voice in the IMF and World Bank.

Medvedev said he and Silva discussed the creation of a "new financial architecture," Russia's ITAR-Tass news agency reported.

Silva and Medvedev did not say whether China and India have agreed to the summit, but finance minister of the four countries met on the sidelines of a G20 meeting in Sao Paulo that preceded their leaders' summit in Washington this month.

The two leaders also discussed increasing cooperation in energy, agriculture and railways, signed a military technology cooperation accord and agreed to cooperate on a satellite program. Russia has a satellite navigation system, and Brazil launches its own rockets from a base in northeastern Brazil.

On a Latin America trip full of symbols reflecting Russia's efforts to counter U.S. influence, Medvedev then left for Venezuela, where Russian warships are taking part in joint exercises in a show of military strength. It is Russia's first Caribbean deployment since the Cuban missile crisis, and Medvedev's visit to Caracas is the first by a Russian president.

The naval deployment is widely seen as a demonstration of Kremlin anger over the U.S. decision to send warships to deliver aid to Georgia after its battles with Russia, and over U.S. plans for a European missile-defense system.

Chavez backed Russia in its conflict with Georgia, and views the fellow oil producer as a key player in moving toward a world freed from U.S. dominance.

"It is clear that Medvedev is seeking to expand Russian influence in the Western Hemisphere, hoping to take advantage of his country's new energy-driven economic clout and lingering negative sentiment toward Bush administration policies during the U.S. political transition," according to a report by the Washington-based Center for Strategic and International Studies.

But the ability of Venezuela and Russia to aid other countries has been severely pinched by declining oil revenues since the world's financial crisis began.

And Russia has shown signs of trying to engage President-elect Barack Obama, as have Latin American leaders whose U.S. relations grew chilly during the administration of President George W. Bush.

"Venezuela holds a primarily economic importance for Russia, in terms of being a major military export destination," said analyst Anna Gilmour of Jane's Intelligence Review. But she said "Russia is not keen to align itself with Chavez' Bolivarian ideology and deliberately avoids making statements regarding political links."

The Russian business daily Vedomosti said in an editorial published Monday that the world financial crisis could even help Russia's weapons exports to Latin America because its products are cheaper than U.S. arms and would fit more easily into reduced military budgets.

"Paradoxically, the Russian arms industries could benefit from cuts in defense spending in some countries," it said.

renukb · Post by **renukb** » 28 Nov 2008 09:34

Medvedev condemns India attacks
The Associated PressPublished: November 27, 2008
http://www.iht.com/articles/ap/2008/11/ ... -India.php

CARACAS, Venezuela: Russian President Dmitry Medvedev has condemned the terror attacks in India, saying the suffering is being widely felt.

Medvedev expressed dismay at the attacks during a visit to Venezuela Wednesday night, saying "what these terrorist acts do is harm all of humanity."

Suspected Muslim militants attacked at least 10 targets in India's financial capital of Mumbai on Wednesday, killing 104 people. The Russian leader said "we feel concerned about these losses."

Medvedev was in Venezuela for talks with President Hugo Chavez, whose government also condemned the attacks.

Venezuela's foreign ministry expressed solidarity with the Indian government and condolences to victims' families in a statement, calling for "those aggressor groups" to return to a path of "non-violence and human equality" once espoused by Indian pacifist icon Mohandas K. Gandhi.

renukb · Post by **renukb** » 28 Nov 2008 09:40

Indo-Russian ties need strengthening
http://www.centralchronicle.com/20081127/2711302.htm

Though the global financial crisis has impacted the economies of both India and Russia, the two countries have decided to give a major thrust to their economic, defence, civilian nuclear and technological relations. A major area of cooperation will be an ambitious expansion of energy-hunting India's civilian nuclear power capacity, the way for which was cleared after the Nuclear Supplier Group's waiver in its favour. It is therefore, time that India races ahead with forging stronger and broader ties with a time-tested and sincere friend who has always stood by its side in good, as well as, difficult times.
The forthcoming New Delhi visit of Russian President Dmitry A. Medvedev, therefore, provides yet another opportunity to review the progress in forging strategic partnership between the two countries, firming up nuclear cooperation and devise a common approach to international problems, such as, the financial crisis which threatens to disrupt the economies of many developing countries, terrorism, the unfinished war against Al Qaeda and Taliban in Afghanistan and Pakistan and developing greater coordination among BRIC countries -- Brazil, Russia, India and China.

The financial crisis originating in the United States - a fallout of unregulated, exploitative and irresponsible form of capitalism -- leading to resource crunch and diversion of priorities, may adversely impact on the war against international terrorism and lawlessness on the high seas and other forms of crime. The Russian Ambassador to India Vyacheslav I. Trubnikov points our that there is danger of the crisis situation in Iraq, Afghanistan and Pakistan getting neglected. The world would not be a safe place until the threat from the fundamentalist terror outfits is completely eliminated. The solution lies not in Afghan President Hamid Karzai or the military-backed government in Pakistan trying to cut deals with so-called moderate Taliban. Taliban of the fighting or non-combatant varieties believe in the same ideology of establishing an Islamic Caliphate and no allurement will make them give up their chosen path.

Since India and Russia both are deeply interested in the stability and security of Afghanistan and Pakistan, the strategy to win over the Taliban and make them part of the government would not succeed. The ideology which derives the Taliban and Al Qaeda needs to be combated and fully eliminated. Therefore, the worsening situation in Afghanistan and Pakistan is a matter of deep concern. Any power sharing deal with the extremists would have unforeseen consequences because, once the fundamentalists share power, they try every stratagem to capture it.

India evokes most positive feelings among Russians. For all the differences in history and culture, India and Russia are very close to each other. Trade between the former Soviet Union and India was burgeoning and almost 80 per cent of the equipment with the Indian Armed Forces at one time was of Soviet origin. The developing relations with other countries may not attain that level. There is a saying in Russia; "One old friend is better than two new ones" and Indians should need it.

Things have changed. The Soviet Union no longer exists and Russia is a completely different country, having traveled from a socialist and command administrative system of economic management to a market system based on competition and private enterprise. Almost all Russian companies involved in import and export of everything including defence equipment operate as private entities, governed by market principles. Therefore, India cannot now expect preferential treatment (as was the practice during the Soviet era when everything was state controlled) and has to negotiate with individual companies directly for import of the needed equipment, whether in the civilian or defence fields.

Russia is a major contributor to India's civilian nuclear power needs and, after the NSG waiver, is ready to sign the agreements on the expansion of the Kudankulum power plants with additional two 1,000 mw units. The possibility of further expansion, with the addition of two more reactors of 1,200 mw each is also being discussed. The agreement will be signed before President Medvedev's visit. Russia disregards talk of the United States possibly approaching the NSG to restrict future sales of enrichment and reprocessing equipment to India and says that it regards the NSG waiver as "final" The rest depends on bilateral arrangements and negotiations. "As far as Russia is concerned once we have decided on nuclear cooperation with India, this means full cooperation. We do not divide the nuclear field into different parts as some countries do, "says Mr. Trubnikov emphatically. This firm assurance has been conveyed to India. Despite the nuclear controversy, Russia managed to supply fuel for Tarapore reactor last year before the NSG waiver.

Trade between the two countries, with a turnover of just 5.3 billion in 2007 is very small considering their GDP, and now a target of 10 billion has been fixed for 2010, which may not be easy to achieve due to the fact that India's exports remains confined to old traditional items like tea, coffee, spices, fabrics though lately pharmaceuticals and transport vehicles have also been added to the basket. Still, commodity groups account for about 82 per cent of Russian imports from India. Moscow now imports some of these commodities from other countries as well under the free market system, based on consumer preference, price etc. therefore, serious efforts need to be made to push up exports to Russia in the non-traditional category, including machinery and equipment, information technology, automotive components etc.

In the defence field, the problems which arose following the break up of the Soviet Union have now been sorted out and now cooperation is clearly on the upswing. Since India wants to move from buying ready-made weapons to acquiring technology, joint development and production, Russia has offered it some of its latest products. Apart from having jointly produced the supersonic cruise missile Brahmos and T-90 tanks, it has also offered joint-development of the 5th generation stealth fighter, with a deadly mix of super maneuverability, supersonic cruising ability and long-range strike and high endurance air defence capabilities. It will eventually replace the Su-30 MKI, which is the most advanced fighter aircraft with the Indian Air Force now.

There is some misconception about Admiral Gorshkov aircraft carrier deal, whose price keeps escalating with increasing Indian demands for more advanced equipment on board. It involves conversion of a ship into an aircraft carrier and to re-equip it. The conversion itself involved considerable re-designing and engineering work because India wanted an aircraft carrier to have high combat qualities and long service life. The Russian side explains, even now the Indian side has not given a final list of the equipment it wants on the ship, some of which has to be imported from other countries and is very costly. The additional work and equipment, as well as, the type of aircraft to go with it were not envisaged at the time of signing the original contract over ten years ago. Moscow hopes that during the upcoming consultations and talks, the two sides will be able to agree on the changes and equipment and on the transfer of what practically amounts to a new aircraft carrier for the Indian Navy. Till the negotiations are over, there can be no finality about the ultimate cost.

Though there are problems and differences, as is usual with complex negotiations involving defence equipment with any country, but no matter how important they may seem at a certain time, they are eventually resolved and will not influence cooperation backed by long-standing friendship. This also applies to the current financial crisis which has created problem for the economies of both countries, whose dimensions will unfold as time passes. Indian and Russia have both welcomed the G-20 decision to meet again soon to devise permanent measures to prevent another financial crisis. Prime Minister Manmohan Singh has made several suggestions and Mr. Medvedev stressed the need to make the international financial structure more open and fair and give it a stronger legal base. AT THE SAME TIME, he feels any new regulation principles should not result in "over-regulation and put a break on financial innovation."

Both leaders have cautioned against deluding ourselves that the economic crisis is anywhere near yet. They will deliberate it further during their meeting in New Delhi. The tendency of local US problems to have global repercussions is a typical feature of an interdependent world. The response to the situation calls for India and Russia to increase trade, economic cooperation and investment and internal liquidity.

renukb · Post by **renukb** » 28 Nov 2008 09:42

Russia's Ties With India, China to Match Their Growing Global Role - Strategy Conference
Wednesday, November 26, 2008 7:57 PM

(Source: Daily News Bulletin; Moscow - English)MOSCOW. Nov 26 (Interfax-China) - China and India's growing influence in world affairs sets Russia the task of creating a matching export potential in the Asian direction, says a the Conference on the strategy of Russia's Socioeconomic Development until 2020.
"The role of trade and economic ties with China and India will depend not only on the potential they have for expanding Russia's foreign trade as a whole, but on those countries' special and growing geopolitical role in world affairs. The large-scale restructuring of their national economies and modernization of their industrial base, backed by growing financial resources, allow Russian companies to claim a share in major projects in the energy, metallurgy and machine-building sectors, and to increase the exports of science-intensive products to them," says the conference, posted on the Russian government's website.

"In this connection, Russia is faced with the necessity to form a matching export potential in the Asian direction and to draft a set of measures to do so," the document says.

"The expansion of foreign economic ties with China as a leader in global economic growth will proceed on a balanced basis," it says.

(c) 2008 Daily News Bulletin; Moscow - English. Provided by ProQuest LLC. All rights Reserved.
http://www.istockanalyst.com/article/vi ... 36735.html

Igorr · Post by **Igorr** » 30 Nov 2008 00:09

I'm shocked by the recent attack. RIP to the people who were killed and for brave Indian servicemen who fall in action! Quick convalenscention for the wounded! I hope the organisators of this scoundrelly act will be punished notwithstanding where they live. My friends in Russia, Ukraine think same.

Igorr · Post by **Igorr** » 30 Nov 2008 21:02

Medvedev, Singh: Russia and India will activated the anti-terrorism cooperation, the visit to India will occure as was decided before - at early December.(RIA-Novosti)

Yogi_G · Post by **Yogi_G** » 01 Dec 2008 03:13

I feel that Russia's condemnation of the Mumbai attacks has not been as strong as for previous incidents for e.g. Kargil, of course Kargil was much bigger in scale, but given all the talk of this being the so-called India 9/11 I was expecting Russian president coming down more heavily.....

The penchant for being politically right is catching on too soon and Medvedev's comments seem to emanate from this....

Given all the talk of potential Indo-Pak hostilities after the Mumbai attacks, we for sure need Russia's unconditional support...I shudder to think how bad it would be if Russia were to give a cold shoulder to India in the conflict and be neutral...which essentially means hyphenation of India with the Porkis...something in the lines of "India and Pakistan must exercise restraint and sit down and talk...both are victims of terrorism..etc"...

Philip · Post by **Philip** » 01 Dec 2008 19:31

Welcome in advance Pres.Medvedev! Russia and India are time-tested friends,especially in moments of crisis.India knows that Russia stands by us at this sad moment in our history and will support us in defeating such proxy terror.

However,this visit,the first by Russia's new President is meant to discuss and strengthen the realtionship in all spheres,not just matters of security,most important though they be.We need to hugely expand our level of cooperation in every sphere.Diplomatic,economic,military,industrially,culturally and in tourism.We need Russia to set up in India more cultural centres,especially in two-tier cities,where Indians can learn Russian,experience exchange programmes.For example,my nephew in the UK went with his class to Russia as part of their geography lessons!What better way to learn about another country than by such visits.It should begin at the school level.Twinning of schools.Rusian experts in ballet,classical music should be available in India and likewise,Indian music and danc eartists should be in Russia.Some years ago,I met at a diplomatic do, a senior Russian diplomat whose daughter was a Bharathanatyam expert.People-to-people relations are as important than govt-to-govt. relations.A close friend recently went on a tour of Moscow,St.Petersburg ,etc. and was fascinated arch-capitalist that he is,with Russia's ancient and fabulous culture.

There is enormous scope for taking Indo-Russian relations onto another level altogether.We must look beyond strolling don old avenues and search out new paths to explore.Let's hope that this first visit by Pres.Medvedev will be the forerunner of a great future ahead for both countries.Igorr,over to you!

Austin · Post by **Austin** » 03 Dec 2008 22:02

Russia-India trade to reach $10 bln by 2010 - deputy PM

NEW DELHI, December 3 (RIA Novosti) - Russia and India plan to increase trade to $10 billion by 2010 from this year's expected level of $7 billion, and diversify economic cooperation, a Russian deputy prime minister said on Wednesday.

Speaking at a session of the bilateral commission on trade ahead of the Russian president's visit to India, Alexander Zhukov said: "We are not only aiming to boost the figures measuring cooperation, raising trade to $10 billion by 2010, but we also want our cooperation to reach a modern level, by expanding investment and science and research ties."

Zhukov said bilateral trade in January-September 2008 grew 54.7% year-on-year to $4.7 billion, with Russian exports growing 62.6% to $3.5 billion and Indian exports by 36.5% to $1.2 billion.

Russia sells to India power plant and other equipment, fertilizers, chemical products, copper, nickel, plastic goods and wheat. India has exported machinery and pharmaceutical goods to Russia.

India's investment in Russia - mainly direct investment in the oil and gas industry, banking and information technology - reached more than $820 million in the first half of this year, Zhukov said.

He highlighted a major project of Russia's AFK Sistema in India. The telecoms and services holding reportedly planned to invest $5-7 billion in launching a mobile communications network in India. The company has so far invested $1 billion in the project.

A Russian government official taking part in the session said Russia has proposed setting up a joint venture in India to produce new-generation antibiotics. Russia's portion of investment (55%) in the estimated $105 billion project is proposed to be paid by India as part of its debt to the country.

"Given the considerable price advantages of Indian-made medicines, Russia has taken steps to remove barriers hampering its cooperation in the pharmaceutical sphere," the official said.

Indian-made pharmaceutical products currently account for 4.1% of the Russian market, he said adding, however, that their quality remains a problem. The official said contacts with Indian producers and state bodies to improve control over quality was a priority in bilateral cooperation in this sphere.

President Medvedev's two-day visit to India will begin on Thursday. Medvedev and Indian Prime Minister Manmohan Singh are to discuss anti-terrorism cooperation in the wake of terrorist attacks on the country's commercial capital Mumbai last week.

The visit is expected to see the signing of a series of agreements, including on nuclear cooperation. Russia will help build another four reactors at India's Kudankulam nuclear power plant to add to the two already built.