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WEDNESDAY AUGUST 12, 2015
Business Report RUSSIA&INDIA THE ECONOMIC TIMES IN ASSOCIATION WITH ROSSIYSKAYA GAZETA, RUSSIA
DIPLOMACY: With NDB and CRA launched, BRICS is looking for next frontier by creating its own payment system
BRICS Ufa summit creates a multipolar map of the world
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BRICS countries, despite their varying economic weight and geopolitical goals, have given a new thrust towards creating a multipolar world by forging a counter-narrative on global issues and rejecting unilateral sanctions GEORGY BOVT Specially for RIBR
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he BRICS summit, hosted in the Russian city of Ufa in July (where it was combined with the Shanghai Cooperation Organization summit), did not just become a symbolic proof that the West had failed in achieving Russia’s isolation through imposing sanctions. Concluding the period of Russia’s presidency in BRICS, it introduced important elements to the new multi-polar map of the world, spawning a number of practical solutions. In Ufa were represented countries, which is home to over 40 per cent of the world’s population and accounts for nearly a third of global GDP. BRICS is not, however, a traditional union of states, and such results, as are expected of similar unions, should not be expected from it. This is more an alliance of elites and a cooperation organisation where experience is exchanged and where internal discussions could produce a new kind of economic relations over time, among other things. The countries in BRICS differ in their geopolitical goals and values. Each one has its own unique economic situation. China’s growth is slowing to less than seven per cent a year. The Brazilian and Russian economies have shrunk to 1.5-3.5 per cent this year. India shows a robust growth rate of nearly eight per cent, and South Africa a timid 1-2 per cent. However, despite their varying economic profiles, these countries are capable of impacting the architecture of international economic cooperation, the first such grouping in the post-war time period created at this scale, sans the USA and a single G7 country.
New Power Pack: The leaders of BRICS countries at the 7th summit of emerging powers at Ufa, Russia
BRICS is seeking new sources for growth. The integration of the Eurasian Economic Union and China’s Silk Road belt, which will transit South and Central Asia all the way through to the EU, are promising in this regard. In May, Russian President Vladimir Putin and his Chinese counterpart Xi Jinping agreed to smooth out excessive competition between the EAEC and the Silk Road. The SCO, which includes countries participating in both projects, is a convenient platform for achieving this goal, especially after the accession of India and Pakistan. BRICS’s New Development Bank has already started its work after the summit in Ufa; its capital could potentially consist of $100 billion. This will be the financing structure,
independent of other international financial organisations, which is important for a number of Russian companies falling under Western sanctions. The Bank seeks to support small and medium business, provide loans to commercial banks and support BRICS countries’ individual projects. The bank will be part of the new international financial network created parallel to the one existing under the aegis of the IMF and World Bank, where the West headed by the US dominates. So, the Asian Infrastructure Investment Bank was created earlier at the initiative of China. It has a capital of up to $100 billion dollars where China holds 16 per cent, and Russia nearly six per cent. More than 40 countries have already joined
it, which are not happy with the US plans to create a new order, without China and Russia, inthe Asia-Pacific region within the framework of the Trans-Pacific Partnership. The AIIB will become a competitor to the World Bank and the Asian Development Bank, where the US and Japan dominate. They have not entered the new bank. It is indicative that China, the world’s second largest economy, belongs to the so-called “second category” of voters in the World Bank, and has only a five per cent share in the Asian Development Bank while the US and Japan have 15 per cent. A currency reserve pool is being created within BRICS. It will become a stabilisation instrument for national capital markets in crisis situations. And it is also independent of the World Bank and IMF, which sometimes impose politically motivated conditionalities in the interests of the West as a whole in exchange for aid. If necessary – – China will put $41 billion into the pool, and Russia, India and Brazil will put in $18 billion, South Africa another $5. The BRICS is planning to create its own payment system so as to free these economies on Western structures in this area as well. Russia has already had the experience of Visa and MasterCard imposing sanctions against its banks, and China originally created its own payment system, and only then allowed Western ones into its market. Starting with the transition to their own mutual electronic settlements system, the BRICS countries will create a common currency sooner or later. This could already occur in completely new conditions where it is not only the dollar and euro that rule the world but also a convertible yuan, as well as cryptocurrencies like Bitcoin.
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Global Internet filtering map
Changing views on Internet censorship in Russia
TRENDS: Poll discloses that 58% Russians favour online censorship in case of a threat to national security or protests
More takers for curbs on Internet in Russia Nearly six in 10 Russians would support the decision to cut off internet access in crisis situations, says a report ANNA DOLGOV The Moscow TImes
Internet access was the highest among Russians who never or rarely go online, but remained high even among those who surf the web daily, according to a joint survey
by Russia’s state-run VTsIOM pollster and the University of Pennsylvania’s Annenberg School for Communication, the RBC news agency reported recently. The number of Russians who describe themselves as daily Internet users has reached 42 per cent of the country’s popula-
tion, while another 20 per cent said they go online several times a week, and 38 per cent said they had not used the web during the past six months, the poll indicated. 58 per cent respondents said that at least in some situations, such as a perceived threat to national security or amid political protests, they would support the government if it decided to cut off Internet access, the report said. In the absence of those special circumstances, the introduction of online censorship is favoured by 49 per cent of respondents, the report said. The number was only slightly lower, at 43 per cent, among those who surf the web regularly. At a time when the government has been telling Russian citizens that the West is supposedly eager to destroy their country and accusing foreign media of defaming
Moscow’s policies, the possible “filtering” of foreign media websites won the approval of 45 per cent of respondents, while restrictions on “other foreign websites” received the support of 38 per cent, the report indicated. A total of 42 per cent of respondents said they agreed with the statement that although foreign nations use the Internet “against Russia,” it is not a threat to their country’s “political stability,” the report said. But another 24 per cent saw the Internet as a threat, according to the report. After Moscow annexed Crimea from Ukraine last year, Russia’s relations with the West have sunk to their lowest since the Cold War. Since then, some politicians have called for cutting Russia off from the World Wide Web and creating a domestic version of the Internet for Russians’ use.
ALENA REPKINA
BIG PICTURE
Diplomacy, in uncertain world FYODOR LUKYANOV Foreign policy analyst
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he key events of the recent past were the Minsk process, the rise of the Islamic State, the worsening of Greek debt crisis and the successful conclusion of negotiations on the Iranian nuclear programme. Each of these phenomena has its own background and logic, but altogether they make up quite a complete picture of global politics. Ukraine, Greece and Iran are the three faces of modern diplomacy. The Minsk process is an example of a desperate attempt to stop massive bloodshed in a situation when neither the conflicting parties nor their ultimate goals are quite clear. The efforts of negotiators were aimed at developing minimally specific formulations, since no one wanted to assume clear and accurately stipulated obligations. At the same time, everyone repeats, like a mantra, that there is no alternative to the Minsk agreements, and it’s true. Stopping the big war is an achievement and lasting peace, it
seems, is simply impossible. The situation is fragile and dangerous, but it illustrates one of the truths of the day in a world that is in a state of transition to who knows where, there are certain problems that are insoluble. The most that can be done is to minimise them. In comparison to the situation in Ukraine, Iran’s talks represent the opposite pole. They dragged on for so long because the main participants Tehran and Washington - have sought to literally verify every step, in order to avoid any double interpretations. The reason is simple: complete distrust towards each other. The Geneva-Vienna process (unlike the Minsk one) has, however, shown that if the parties know exactly what they want and really want to find an agreement, a lot can be achieved. Greece represents another option. The achieved “compromise” has left everyone with a heavy aftertaste and a feeling that nothing has been solved. On the one hand, it has been clear for
a long time that someone’s leadership is required is required to solve the eurozone crisis. This someone is obviously Germany, the most powerful country in the European Union. The big question which has been asked by many is: does the leader know what to do? Nevertheless, the Eurozone crisis has demonstrated the third type of negotiation approach: the dictate of the strongest, the thing that someone accepts voluntarily and willingly, and someone with fear and doubt. The fourth key event of the season - the success of the Islamic State shows a situation, where diplomacy and politics are helpless. The IS is the system wreck of the model, the result of the 20th century arrangement of the Middle East. The uncertainty that is spreading now concerns not only the future, but also the effectiveness of the known methods of solving social problems. The disturbing symptom of the past period was the more frequent talk about the approaching big war. The fear, which seemed to have disappeared at the turn of the 1990s, is coming back. At the same time, as noted by many experts, there are no real grounds for either an arms race or a serious clash of interests. But in today’s world, the line between reality and illusion has almost faded.
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E |C |O |N |O |M |I |C |S WEDNESDAY AUGUST 12, 2015
FINANCE: BRICS-led New Development Bank is expected to offer its first loan in yuan and encourage use of national currencies
Russia may soften requirements for supplies of cheese Russia may soften its requirements for supplies of dairy products (in particular - hard cheese) from India, Alexey Alekseenko, an aide of the head of the Federal Service for Veterinary and Phytosanitary Surveillance told TASS. Sanitation and hygiene concerns prompted Russia to require that milk for dairy products should be supplied only from large farms. TASS
Rosatom subsidiary buys 51% stake in Indian company
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Rusatom Overseas, a subsidiary of the state corporation Rosatom, has acquired a 51% stake in Gamma Tech India Private Ltd to work on building radiation sterilisation centres in India, an Indian daily reported. A network of sterilisation centres will be built in Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, and Maharashtra. These will be used to disinfect food and sterilise medical instruments by ionising radiation. TASS
Indra 2015: Joint peace enforcement operation under UN
NDB takes off, first loan by 2016 BRICS’ new bank promises to liberate emerging economies from the prescriptions of the West tration of the President of Russia. In the VEB itself, he was in charge of maintaining contacts with the BRICS countries. His fluency in Chinese is an added asset, which is significant considering the location of the Bank’s headquarters. The contract with the Russian representative will be signed for six years. At first, the Bank will operate with the capital of $10 billion – $2 billion from each BRICS participant. If necessary, the capital may be increased to $40 billion, and the maximum is set at $100 billion. The Bank’s main task is to finance infrastructural projects in emerging markets, including in BRICS countries. The BRICS members also welcomed the NDB’s plan to work closely with existing and new financing mechanisms, including with the Asian Infrastructure Investment Bank. This was created in 2014 and the agreement on its establishment was signed by 21 countries. Banks will share their experience at the formation stage. “Joint financing for large-scale projects will solve several problems at once. It eliminates the necessity of going to the World Bank for money, which is under US control, and it deepens and makes substantive the cooperation between the BRICS members while making it possible to lighten budget loads by spreading financing
VIKTOR KUZMIN RIBR
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n July 20 in Shanghai, a ceremony for the official start of operations for the BRICS New Development Bank was held. This is a jointly-run institution for the development of the grouping, which should become an analogue to the World Bank. Work started early the same month at the BRICS summit hosted in the Russian city of Ufa. The first meeting of the Bank’s Governing Board was held there, with the leaders of the five emerging countries attending the summit. The first NDB President is a veteran banker from India – Kundapur Vaman Kamath. He will have four deputies. Russia is to be represented in the Bank’s first management body by Vladimir Kazbekov, Director of the Foreign Affairs Department of Vnesheconombank (Bank for Development and Foreign Economic Affairs). His candidacy was put forward by the Ministry of Finance and supported by Prime Minister Dmitry Medvedev. The leadership of the Bank will operate according to a principle of rotation. Russia is third in line. 60-year-old Kazbekov has worked nearly a third of his life in the VEB. Before that, he worked in the Ministry of Foreign Affairs and the adminis-
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NEWS
Betting on new financial order: K.V. Kamath, the first head of the New Development Bank and a veteran Indian banker, at a function held in Shanghai to launch the first multilateral bank of the global South between all of the BRICS members,” Konstantin Korishenko, department head at RANEPA and former deputy chairman of the Bank of Russia, told RIBR. Meanwhile, according to his assessment, the problems seen in recent times in the economies of China, Brazil and Russia, will only strengthen the role of the BRICS bank. The Bank is expected to approve the initial projects in the area of investments as early as 2016. The first loan may be issued in April 2016, and in
yuan. “The yuan aspires to be a global currency. China approached the IMF with a proposal to include the yuan in the SDR ‘basket’, that is, to recognise it de facto as a reserve currency. This issue will be considered in the IMF fall meeting,” said Korishenko. According to him, using the yuan as the base currency for the Bank, alongside accepting national currencies in bilateral relations, will make it possible to activate the development of national banking systems and financial
markets and reduce the dependence of BRICS economies on the policies of the US, Europe and Japan. However, these are all still plans. Formally, the Bank will only be able to begin its work after the agreement on its establishment is ratified by all of the BRICS partners. Until that moment, its personnel will work as in a collegial body. They will elaborate internal documents, write a business plan, and prepare a medium-term strategy.
GEOPOLITICS: For Moscow, the expanding SCO, with its growing regional profile and clout, will reinforce its ongoing pivot to Asia
Inclusion of India and Pakistan set to be a game-changer for SCO The SCO, with the inclusion of new members, can’t be dismissed any longer as a paper tiger SERGEY STROKAN, VLADIMIR MIKHEEV
RIA NOVOSTI
The Russian-Indian Indra-2015 joint exercise will be conducted in India in November during which the military will conduct a “peace enforcement” operation under the UN mandate, the press service of Russia’s Southern Military District, told TASS. The manoeuvers will last for 13 days and nvolve 250 troops from each side with their standard weapons. Russia will be represented at the drills by motorise infantry battalion units of the 20th motorised infantry brigade of the Southern Military District, and India by units of the Grenadier Guards’ 13th battalion. TASS
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ourteen years after its foundation, the Shanghai Cooperation Organisation held a benchmark summit in the Russian city of Ufa, paving the way for an expansion that is qualitative as well as quantitative. The SCO has agreed to incorporate two important regional players, India and Pakistan, which provide Russia with additional leverage in pursuing its pivot to Asia. Originally, the SCO had a limited agenda. It was envisaged simply as a pillar of stability and security for Central Asia aimed at countering threats posed by radical Islam and drug trafficking from neighbouring Afghanistan. Now, the sheer weight
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of demography, geography, economic power and politics will produce an upshifting of the SCO. With India and Pakistan now set to join, would it be fair to say that the SCO is evolving into a global player? Alexander Lukin, director, Center for East Asian and Shanghai Cooperation Organisation Studies at the Moscow State Institute of International Relations, sees the arrival of the two regional powers as a gamechanger for the SCO. “ I think it is a positive sign and a step forward because the organisation, while not at a dead end, is undecided on where to go next. The entry of India and Pakistan, especially India, will give an impetus to economic cooperation within the SCO, which is not its strongest point for the moment. India is a strong economic power with interests
RIBR
New equations: The leaders of SCO countries holding their landmark summit in the Russian city of Ufa on July 10, which culminated in the first-ever expansion of the Eurasian grouping. in Central Asia and growing trade with China, said the expert. “It will also change the political nature of the SCO, which was seen, rightly or wrongly, as a China-Russia organisation dealing with Central Asia. India and Pakistan will transform the SCO in many ways. Among other things, all documents from now on will have to be translated into English, which will become the third official language, on par with
BRIDGE BUILDER
From Brahmos and KNPP to poetry, Kalam’s legacy lives on ARUN MOHANTY Specially for RIBR
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ndia’s missile guru, an outstanding scientist and a driving force behind the country’s nuclear programme… While tributes will continue to pour in for Dr A.P.J. Abdul Kalam, he will always have a special pride of place in Russia. The BrahMos, largely Kalam’s brain child, continues to shine forth as a pillar of special and privileged strategic partnership between India and Russia. Recounting the beginning of his relations to Russia, Dr Kalam told the authors how he met Russia’s leading scientist in missile technology, Gerbert Efrimov, legendary head of NPO Mashinostroyeniya in the Moscow suburb Reutov, in 1981. The two men liked and believed in each other in the very first meeting and decided to open their laboratories to each other. More than a decade later, as head of the Defence Research and Development Organisation (DRDO), Dr Kalam contacted his old friend
Efremov and held talks with the head of the Russian state committee for the defence industry with the proposal to set up a joint venture in participation with NPO Mashinostroyeniye for the development of guided anti-ship missiles. Kalam and Efrimov signed the memorandum of intent and protocol in 1994 to go ahead with the project. The agreement was signed in 1998 to develop, manufacture and sell antiship missiles.
The first launch of BrahMos in 2001 turned into a giant step in India-Russia strategic cooperation, heralding a new stage in mass production of this supersonic missile for the army, navy, aircraft carriers and submarines of both countries. The late president was not only India’s missile man; he was also a strong supporter of India-Russia civil nuclear cooperation. When a calculated, vicious campaign was launched against the Kudankulam NPP, under construction by Russia in Kalam’s home state Tamil Nadu, he wrote a strong report to the government in favour of the plant, rubbishing tsunami threats to the plant. It was Dr Kalam’s unstinting support and public respect he commanded that went a long way in quelling motivated protests. Kalam became the first Indian president to pay his first state visit to Russia after the Soviet Union broke up. During his trip in 2005, he visited the Russian Academy of Sciences, from which he received an honorary professorship, Moscow State University, the Sukhoi
design bureau and, of course, NPO Mashinostroniye, indicating his keenness to augment bilateral cooperation in areas such as research, education, defence, science and technology. During this visit, projects like the joint development of fifth generation fighter aircraft and a civilian jet were first discussed between the two countries. President Kalam was emotionally moved while visiting the Tomb of the Unknown Soldier at the Red Square in Moscow during this tour, and penned a poem in the memory of Soviet soldiers who had sacrificed their lives in World War II. The poem read as follows: Life is a phoenix, can rise from the ashes Presents a future at challenging situations This altar of ashes is a fountain of new life War was trusted, martyrdom shined Memories of soldiers ignite beauties of life Phoenix is a metaphor of life in its action Ashes remind us to celebrate greatness of those lives In a unique gesture, President Kalam presented that poem to President Putin during the banquet hosted in his honour at the Kremlin. This was the quintessential Dr Kalam, brimming with great love and respect for Russia.
Chinese and Russian. It will alter the agenda, in particular, related to fighting terrorism, since both newcomers face this problem.” However, Timofei Bordachev, director of the Center of European and International Studies at the Moscowbased Higher School of Economics, doubts that it’s going to be smooth sailing in days to come. “The inclusion of India and Pakistan is significant step
in the development of the SCO. At the same time, it presents not only an opportunity but a challenge. These two nations can hardly be called ‘friendly,’ and they face plenty of unresolved problems between them. We cannot be sure where it will lead us: to more cooperation or to more disagreements. On the other hand, now the SCO can position itself as a regional, Eurasian political platform where, in particular, controversies between Pakistan and India can be tackled,” said Bordachev. Further delay in admitting Iran, which currently holds the observer status, to the club as a full-fledged member may have cast a slight shadow on the ascension of the SCO to prominence but has not dissuaded others. Egypt, among others, has applied for dialogue partner status, currently enjoyed by Belarus, Turkey and Sri Lanka. For Russia, the burgeoning alliance of the willing enhances the rationale of its pivot to Asia, since it expands and backs up its outreach not only to Central Asia and Northeast Asia but also to South Asia and even the Middle East. What started as a localised grouping of five nations (The Shanghai Five) is now elevated to a formidable alliance. Today, the SCO can no longer be dismissed as a ‘paper tiger.’
MiG-35 likely to get another shot in India Indian Air Force is finalising a new tender for the purchase of 90 medium-sized multirole fighters STAS KUVALDIN Gazeta.ru
After the Indian government opted to buy 36 Rafale jet fighters “off the shelf” during Prime Minister Narendra Modi’s visit to France earlier this year, India’s Defence Ministry is preparing to acquire more fighter aircraft to fulfil the needs of the armed forces. According to reports in the Indian media, the Indian authorities are preparing to issue an official tender proposal for the supply of 90 new medium-sized fighters for the Indian Air Force. All participants in the earlier bid (to acquire 126 aircraft originally) for the purchase of medium multirole combat aircraft (MMRCA), which ended with the government deciding to buy only 36 Rafale fighters, will be invited to participate in the tender. This means that the Russian MiG-35, which lost out to the Rafale bid, can again take part in the bid. According to sources in the Indian armed forces, following the new tender, the aircraft must be manufactured in India. This will make it one of the ele-
ments of Prime Minister Modi’s ‘Make in India’ project, an ambitious programme for localising modern defence production within the country. The inclusion of new defence projects in the programme still faces certain difficulties. In particular, P. S. Raghavan, India’s ambassador to Russia, said in an interview in July that, possibly the only defence project in the “Make in India” programme will be the manufacturing of the Russian Ka-226 transport helicopter in India. Now, a more ambitious and much larger project involving the production of fighter planes may become part of the ‘Make in India.’ In the opinion of Russian aviation industry experts, such participation is quite likely. “They are working with us on the production of the Su-30 heavy fighters, so they decided to choose Rafale for lighter class fighters. But the MiG-35 may have an advantage in the tender. India is definitely interested in technology transfer, and we are willing to share it more than others,” said Ruslan Gusarov, editor of the Avia.ru website.
IN ASSOCIATION WITH ROSSIYSKAYA GAZETA, RUSSIA
E |N |E |R |G |Y WEDNESDAY AUGUST 12, 2015
ENERGY: Technology for processing radioactive waste is set to go global
DEFENCE: Russian shipbuilding industry ready to support ‘Make in India’
New weapons systems, joint production on way The India-Russia defence partnership is aimed at making India a great power in the region VINAY SHUKLA Specially for RIBR
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Banking on plasma method in Russia New technology will remain in high demand in India due to its plan to set up 25 nuclear plants ANDREY RETINGER Specially for RIBR
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ussian scientists have been working for several years already trying to develop a new method for the processing of nuclear power plant waste. Until now, the main method for disposing low-level and intermediate-level radioactive waste was vitrification in a direct electric heating furnace. This method is also being used in India at the radiochemical plants in Tarapur and Trombay. This new technology works on the principle of processing liquid waste in a salt concentrate and using deep evaporation units capable of attaining temperatures of 1800 ºC. The hot molten salt concentrate is then poured into metal barrels, which after cooling, turns into a glass-like monolith. “Plasma technology allows converting radioactive waste into glass-like slag, and in the process, greatly reducing its volume, and then afterwards, this slag is easily shipped for very long and safe-for-humans storage,” explains Alexander Uvarov, a nuclear energy expert. Such installations, he said, are relatively cheap, including when it comes to operating them, while also requiring a minimal presence of staff in the most dangerous sections. One thousand tonnes of radioactive water, after processing, is transformed into a single packed barrel. In such a
in building up to 25 nuclear power plants in India. All of this means that technologies for the processing of radioactive waste and spent fuel will remain in high demand in India in the coming years. Some countries, involved in the development of the nuclear power industry, do not recycle its waste products, choosing to bury them deep underground in special containers. “The methods of waste incineration that are available in the world today have almost exhausted their environmental and technological usefulness, in addition to being very expensive to use. Improving the effective utilisation of waste processing technologies, including the use of plasma, will remain a priority for Russian nuclear scientists,” says Uvarov.
sate, the cooled salt concentrate can be stored for up to 300 years. During this period, the majority of radioactive isotopes remain safe, while the barrels themselves can be stored in conventional hangars. They decided to try out this new complex at the Novovoronezh NPP, since this was one of the first commercial nuclear power plants in the USSR. It has been operating since 1964, and during this time, a great quantity of waste has accumulated in the station’s storage facilities. Storing radioactive waste During its 50 years of existence, the nuclear power industry has accumulated vast amounts of various types of radioactive waste. Some nuclear-power states are trying to send their waste to poorer countries, which are in dire need of foreign currency. For example, Europe usually sends low-level radioactive waste into Africa. Worldwide, the number of new nuclear power plants, research reactors, and atomic installations in general, keep growing every year, and accordingly, the amount of hazardous waste keeps increasing. In India, for example, nuclear power plants will produce 14.6 GWh of electricity by 2020, while the authorities intend to get one quarter of the country’s electricity from nuclear power plants by 2050. Moreover, Russia may be involved
Plans for future According to him, after the successful operation of this complex at the Novovoronezh NPP, Russia can begin offering it in the international market. In the future, the Russian state corporation Rosatom is planning to equip as many nuclear power plants as possible in Russia with such plasma installations. In the end, thanks to this new technology, first, the need for transporting dangerous waste will disappear, and second, thousands of cubic meters will be freed up in warehouses that currently store radioactive waste. At one time, the US Environmental Protection Agency called vitrification the best technology for the management of radioactive waste.
Next atomic plant in Andhra Pradesh? Preliminary talks have begun with India on Russia setting up a new Light Water Reactor ALESSANDRO BELLI RIBR
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ndia is in talks for a new location, possibly in Andhra Pradesh, where it could build a new nuclear plant with Russian assistance, RIR learned from the country’s Department of Atomic Energy. “Discussions between Department of Atomic Energy (DAE) and the Government of Andhra Pradesh for location of the second Russian technology based Light Water Reactor (LWR) Nuclear Power Plant are at an advanced stage,” a source in the department said. The Indian government has apparently accorded “in-principle” approval for setting up of nuclear power reactors with international technical co-operation with the US at Kovvada (Srikakulam District) in Andhra Pradesh. “At present, the pre-project activities comprising land acquisition, environmental clearance by Ministry of Environment and Forests (MoEF), geo-technical and other scientific studies for regulatory clearances are in progress at the site,” officials said. Russia is the only country today that
Russia offers to build over 20 nuclear power units in India is really cooperating with India in the field of nuclear energy. In Tamil Nadu, the first unit of the Kudankulam NPP, built with Russian assistance, has begun commercial operations, while the second unit is ready and is now in the hot running stage and should begin functioning soon. Construction work on the third and fourth units of Kudankulam NPP should start in 2016. These are planned to be commissioned in the years 20202021. During his visit to New Delhi on
December 11, 2014, President Vladimir Putin signed a document that outlines plans for Russia to assist in building at least 12 nuclear power plants (NPP) in India. Recently, a newspaper reported that Russia has proposed a plan to involve India in building Russiandesigned nuclear power plants in third countries. According to the newspaper, the cooperation is to be extended also to the area of joint extraction of natural uranium and the production of nuclear fuel and atomic waste elimination. “Russia has also offered to build over 20 nuclear power units in India, up from the 12 offered earlier”, it added. It also quotes a high-level source, saying that Moscow saw it as “long-term, mutually beneficial cooperation” in the nuclear sector. A government source of RIR has confirmed that such negotiations have taken place, and added that this could lead to “joint construction of power stations and other aspects of cooperation, including the training of personnel in other Asian countries, including Bangladesh, Vietnam, and Sri Lanka”. “This, in particular, is due to logistical issues. New Delhi is much closer to these countries than is Moscow. Moreover, our Indian partners are ready to train their Asian colleagues,” he said. Cooperation in nuclear energy figured prominently in the talks between India’s Prime Minister Narendra Modi and President Putin during their summit meeting in New Delhi in December last year, and their talks in the Russian city of Ufa in July.
oing by media reports in both India and Russia, prominent coverage is being given to the US overtaking Russia as the biggest arms supplier to India. The reports make it look like the prospects of bilateral Indo-Russian military-technical cooperation are bleak. In this climate of negativity, India’s Ambassador P.S. Raghavan’s interview to the Press Trust of India came as a ‘big bang.’ The ambassador unveiled the agreement for manufacturing 200 Kamov helicopters in India. Responding to a question about the dilution of India’s defence cooperation with Russia, the envoy said: “This (India-Russia ties) is a huge, broad based relationship, getting broader every day… If two countries decide to manufacture 200 helicopters in India with transfer of technology, and licence production, this is big bang.” Recalling Prime Minister Narendra Modi’s statement at his joint press conference with visiting Russian President Vladimir Putin in December 2014 that Russia has been and will remain India’s “primary” defence partner, Ambassador Raghavan also noted that more joint projects are in the pipeline and will be announced when they are firmed up. According to latest media reports, Russia has picked Anil Ambani’s Pipavav Defence Shipyard for building 3-4 Talwar Class stealth frigates of improved Project 11356 under a government-to-government deal exceeding $3 billion. My recent visit to St. Petersburg to attend the bi annual International Maritime Defence Show (IMDS-2015)
in early July and my interactions with officials of the Russian military industrial complex left a strong impression that their naval shipbuilders have taken the Modi government’s ‘Make in India’ challenge not only seriously, but also with enthusiasm. “Under the Indian Government’s policy of ‘Make in India’ in key defence sectors, the Russian shipbuilding industry is ready to provide ‘critical’ and sensitive technology to India,” Deputy Director General of the state arms exports corporation Rosoboronexport (ROE) Igor Sevostyanov declared on the sidelines of IMDS-2015. The history of India-Russia naval cooperation goes back to 1960s, when Russia’s oldest submarine design bureau Rubin and oldest shipyard Admiralty, both in St. Petersburg, built the first four Foxtrot class (Kalvari class) diesel-electric submarines for the Indian Navy. Now Rubin is waiting for India’s tender for the P75-I project for the indigenous construction of six new generation diesel-electric submarines. According to Rubin Chief Executive Igor Vilnit , this submarine could also be equipped with AIP being developed by India. “If India wishes, we can also have provisions for installing Brahmos cruise missiles on this submarine.” He believes that at least one submarine would have to be built in Russia’s Admiralty Shipyards so that Indian engineers could learn the art of making hi-tech submarines. Meanwhile, the Indian shipyard could be equipped with necessary machinery. Admiralty Warf Chief Executive Alexander Buzakov noted that they make four submarines in a year, while in the beginning it could take up to four years to build one submarine in India. “Our cooperation is forward-looking. To be-
come a great power in Indian Ocean, India will have to increase the ratio of its nuclear submarines in its subsurface fleet. If our governments take a political decision, we are also ready to help in this,” Vilnit said. At the same time with the help of Rubin, the Zvyozdochka submarine and ship repairing plant is modernising the Indian Navy’s Sindhughosh Kilo class type submarine in Severodvinsk. So far, four submarines have undergone refit after which they can attack not only with torpedoes but also destroy enemy ships and costal installations with Club cruise missiles. Zvyozdochka General Director Nikolai Kalistratov dreams of creating a submarine repair centre in India, where not only Indian naval submarines, but also Russian- built submarines, with other foreign navies, could be repaired. The India-Russia defence partnership is not limited to bulk supplying of arms, but is an institutionalised system geared to make India capable of defending its national interests on land, air and sea. With growing awareness of threats and challenges to India’s maritime security in Indo-Pacific region, Russia will remain New Delhi’s prime partner in developing Indian Navy’s strategic reach.
IN ASSOCIATION WITH ROSSIYSKAYA GAZETA, RUSSIA
T |R |A |V |E |L WEDNESDAY AUGUST 12, 2015
TOURISM: From horse riding in Tuva and fishing in Siberia to tigers in the Far East, Russia has a lot to offer for the adventure seeker Fishing in Siberia
Skiing in Krasnaya Polyana
Fishing has a reputation of being a “real man’s sport” in Russia, so it was no surprise when Putin jumped on the bandwagon and tried to take it up a notch: If we are to believe the photographs, he bare-chestedly pulled a massive 21kg pike-perch out of the waters in the Tuva Republic in Siberia in July 2013. This activity is by no means limited only to Tuva or indeed the summer months. Russians and foreigners alike enjoy fishing (vodka and pickles are optional!) all across the vast country come rain or shine, snow or ice.
If it happens to be winter when you turn up in Russia, don’t despair: The country has plenty to offer for fans of winter sports. Why not start by hitting the slopes to thrash some serious snow at Krasnaya Polyana, the site of the 2014 Winter Olympics – and another of Putin’s playgrounds. While Krasnaya Polyana is now the most famous Russian ski resort, you can also opt for a more remote and “exotic” location suitable for any budget or level of experience – check out this list of majestic mountains stretching from the Caucasus to the Murmansk Region and from the Urals to the Far East.
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Watching tigers in the Far East
Outdoor travel in Russia for the macho & fearless
Scuba diving in freezing waters
Apparently a keen animal lover, for his next PR stunt Putin decided to travel to the Ussuri Reserve in the Far East to see how scientists were coping with the daunting task of monitoring the extremely endangered Amur tiger in the wild – and ended up shooting one with a tranquiliser gun for the sake of science… or a good photo opportunity. Primorye, also known as the Primorsky Territory, in Russia’s Far East is one of the few places on Earth where you can meet a tiger in its natural habitat. There are three fully-grown Siberian tigers living approximately 40 miles from Vladivostok in the Primorsky Safari Park. Note their size, sharp claws and speed. Perhaps a visit like this will make you realise that meeting these tigers unprotected is not a very good idea.
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RIBR follows in President Putin’s footsteps and looks at holiday options, with or without shirt MARIA STAMBLER RIBR
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ussia offers a wealth of outdoor activities for those in search of adventure, and its president is renowned for his macho outdoor antics. Over the last few years, Russian President Vladimir Putin has made headlines around the world with a series of macho photographs of him taking a break from his official duties by skiing, shooting tigers, fishing or riding horses in the Russian wilds. Putin may have been widely mocked
machismo PR stunts, Putin was photographed shirtless on horseback in the wilderness near the town of Kyzyl in the remote Tuva Republic in Siberia, generating a whole series of satirical memes. But while you don’t necessarily have to do them topless, horseback tours around Siberia really allow you to interact with this fascinating part of Russia. The trails along the western shore of Lake Baikal are as diverse as the terrain: You can take a brisk canter along the beach, an amble through the steppe, a faster ride across sweeping grasslands or a meander through the magnificent mountain scenery of the lake’s middle section. Perhaps before the horseback ride,
outside Russia for this posturing – especially for the topless photos – but many Russians do choose to spend their holidays in the great outdoors. When it comes to opportunities for wilderness recreation, Russia is simply unrivalled – its mountains, lakes, thick forests and rivers mean that there are few places better suited to wild camping, skiing, fishing, horse riding – or even tiger watching. Horse riding and swimming in Tuva In possibly the most notorious of his
perhaps after, why not get closer in touch with nature by taking a refreshing dip in a lake somewhere in the same region. Indeed, this area is famous for its lakes and “arjaans,” which are hot springs closer to the Mongolian border that formed years ago due to fractures in the earth’s crust. In the olden days, arjaans were often given to people by shamans. The nutrients and minerals in these springs are considered a form of medicinal treatment. Ush-Beldir is a health resort that specialises in these springs. In the western part of Tuva there are many radon springs. The most popular arjaans are Shevelig, Dostug-Hem, Dorgun and Ulaatie.
Scuba diving in the Maldives to see colourful exotic fish is so 2009, and naturally, Putin knows it, so in 2013 he hopped into the “Sea Explorer 5” (a small submersible craft) and went 200 feet under to see the remains of the naval frigate Oleg, which sank in 1869 in the Gulf of Finland. Though it is too chilly for most people, there are a couple of scuba diving clubs that take the few brave and willing to the freezing waters of the Gulf of Finland, as well as Lake Ladoga, Lake Baikal, the Barents Sea and even as far away as the Sea of Japan – thermal suits included, of course. And if that’s not macho and adrenalin-pumping adventure for you, then go for a tour operator that will take you underwater hunting.
Crimea-Kerala zoo exchange plan How Nehru’s ‘mango diplomacy’ waits for PM Modi’s green signal Bureaucratic hurdles are holding back the exchange of animals between sweetened and cemented ties Thiruvananthapuram Zoo and Taygan Lions Park and Skazka Zoo in Yalta HISTORY: Soviet leaders, Indian PM travelled in open limousines to cheers
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India’s first prime minister Jawaharlal Nehru with Soviet leader Nikita Khruschev in 1955 ARUN MOHANTY Specially for RIBR
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t was 60 years ago, in 1955, when India’s first Prime Minister Jawaharlal Nehru embarked on his first official visit to the Soviet Union. Nehru’s first official visit to the USSR was delayed for several reasons. There was an intense debate in India about which country; USA or USSR, should be the first destination in the Indian prime minister’s calendar of foreign visits. Also, Soviet leader Josef Stalin initially had a negative view about Nehru, who was described as the ‘running dog of world imperialism’ by his ideologues. As it turned out, Nehru decided he
should pay his first official visit to the US in 1949. The visit was a disappointment and belied Nehru’s expectations of substantive US assistance for India’s economic development. India’s position on the Korean War brought about a dramatic change in Stalin’s attitude towards Nehru and the Soviet worldview on India, which reflected in the gradual change in Moscow’s position on Kashmir and warm overtures from both sides. The visit started on June 7. For the first time, Soviet Premier Marshal Bulganin and the entire CPSU politburo was present at the airport to meet the Indian dignitary. For the first time in Soviet history, Soviet leaders
and the visiting dignitary travelled in open limousines on roads leading to the Kremlin, waving to thousands of people gathered to welcome the Indian leader. On the third day, the Indian ambassador hosted a reception where Nehru met Soviet leader Nikita Khruschev. The huge Soviet reception held in the Kremlin in Nehru’s honour saw the cementing of Indo-Soviet friendship. During a nearly three-week long stay, Nehru visited schools, universities, collective farms and factories across the Soviet Union. The visit proved to be very successful. USSR provided unprecedented assistance for India’s rapid industrialisation, and helping it to build a self-reliant economy. Bhilai steel plant became the first factory to be built with Soviet assistance, becoming the flagship of Indian metallurgy and was followed by dozens of industrial enterprises in metallurgy, energy, space and machinebuilding that laid a solid foundation for India’s rapid industrialisation. During his visit to the Artek pioneer camp on the Black Sea, Nehru announced that two elephants, Ravi and Shashi, would be gifted to the Soviet children. After his gift of mangoes to the Soviet leadership, mangoes were apparently served at an official Kremlin dinner for the first time. The visit elicited derision in the West. But, six decades later, “mango diplomacy” and “elephant diplomacy” have borne fruit, and Nehru’s visit is remembered as a milestone event in the history of this “time-tested” friendship.
Russia Direct is a forum for experts and senior Russian and international decision-makers to discuss, debate and understand issues in geopolitical relations at a sophisticated level.
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n agreement signed between the Taygan Lions Park and the Skazka (Fairy Tale) Zoo in Yalta, Crimea and Thiruvananthapuram Zoo to exchange animals has got entangled in bureaucratic procedures. The pact has been on hold since February, after the government of Kerala refused to allow the exchange, a source familiar with negotiations told RIBR. Officials from Kerala have asked the Crimean zoo authorities to directly contact the Indian Prime Minister to get his permission. “By February this year, we had obtained all permissions, except for the final go-ahead from the administration of the state of Kerala, and so we had to send a request to the Ministry of Environment, Forest, and Climate of India,” the source said. “After six months of waiting, we were told that they could not issue the permits.” RIBR gained access to the letter in which the Kerala officials said they could not allow the exchange without first receiving approval from the central authorities, and asked the administrations of The Taygan Lions Park and the Skazka Zoo to “meet with Prime Minister Narendra Modi regarding the exchange.” “We should get prior sanctions from the Central Government. If Modi instructs the state to give the animals, then it will be easy,” the Kerala officials wrote in the letter. B. Joseph, Director of the Directorate
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India’s first prime minister’s landmark trip to USSR in 1955 transformed bilateral ties forever.
of Museums & Zoos Department of Kerala, confirmed to RIBR that the “exchange can only be carried out with the permission of the Central Government.” He added that this rule applies to all animal exchanges involving zoos in India.
Officials from Kerala have asked the Crimean zoo authorities to directly contact the Indian prime minister for his permission Recently, RIBR learned from Oleg Zubkov, the director of Skazka and Taygan, that the zoos had concluded an animal exchange agreement
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with Thiruvananthapuram Zoo, which envisages that in exchange for three elephants from India, the Thiruvananthapuram Zoo will receive two white lions, 15 coatis, two Siberian Tigers, two llamas, and five Sajmirs (squirrel monkeys). A source familiar with the negotiations said there are plans to bring in seven elephants from India, in exchange for zebras. The elephants are to be accompanied by mahouts (handlers/keepers). Taygan, created in 2012 in the Belogorsky Region of Crimea, has become the largest nursery in Europe for various breeds of lions and other species. The Skazka Zoo, created at Yalta in 1995, is home to over 100 species of animals and birds. Around 350,000 people visit Taygan every year. Another 250,000 visitors come to the Skazka.
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