Russia has agreed to help India build ten nuclear reactors after major trade and energy deals were concluded, which sees major investment in the two countries’ economies as they both push forward for further growth and momentum.
Russian President Vladimir Putin was in India in December of last Year to meet Indian Prime Minister Narendra Modi to focus on trade and energy deals that saw a confirmation that Russia would aid in the building of ten nuclear reactors as well as several hydro-electro projects in India which are expected to be worth around A $1bn (£630m; €800m) alone.
The new reactors will be built over the next 20 years, with the terms of the deal specifying that all nuclear components will be built in India. This comes at a time when India is experiencing mass blackouts across the country as the energy demands of the massive population far outstrip the supply. With the country also growing at a phenomenal rate and Mr Modi being considered a pro-business Prime Minister, more energy must be provided to the sub-continent if it wishes to be a global competitor.
The deal is also great news for Russia as it comes at a time where strained relations with the West have seen its exports to Europe and the United States hit by trade sanctions due to escalating tensions in the Ukraine conflict.
Other energy deals have seen Russian oil supplier Rosneft sign a deal with India to supply the country with 10 million tonnes of oil per year, with Russian energy suppliers looking to expand into Asia as European markets have stalled. A project to build a new gas pipeline to Europe, named South Stream, was cancelled after concerns that it could be in breach of European Union competition rules were raised.
It was not just energy that the two countries agreed on, as Russia also agreed to supply India with major defence contracts and has agreed to manufacture its most advanced military helicopter in the country remaining India’s biggest defence supplier.
Agreements on improving bilateral diamond trade were also reached as Russian mines will move more of their rough cut diamonds to India for cutting and polishing rather than major hubs in Europe and the Middle East such as Antwerp and Dubai.
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