Russia and India Business Report by Russia Beyond

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WEDNESDAY AUGUST 13, 2014

Business Report RUSSIA&INDIA THE ECONOMIC TIMES IN ASSOCIATION WITH ROSSIYSKAYA GAZETA, RUSSIA

TRADE: Moscow to substitute 15-20 percent of imports; India prepares a list of over 20 items for export

STATISTICS

As tit-for-tat sanctions rage on, India eyes Russian market

Ruble/Rupee dollar rates

Russia’s retaliatory food ban on products from the EU and US in the wake of Western sanctions has opened new avenues for Indian exporters to fill the gap in a host of areas, including meat, dairy products and pharmaceuticals. AJAY KAMALAKARAN RIBR

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Wide avenues for Indian exporters Informed sources tell RIBR that the Russian authorities have reached out to India to help fill the potential gap. Recognising the potential, India’s Commerce Ministry has come up with a list of around 20 items that could be exported to Russia. This includes optics, pharmaceuticals and meat. According to India’s Agricultural and Processed Food Products Export Development Authority (APEDA), buffalo meat exports amounted to $4.3 billion in the 2013-14. There have been concerns from Russian agriculture and veterinary sanitation inspectors about the conditions in which buffalo graze in India. The main markets for Indian buffalo meat exports, including Malaysia, Mauritius and the Seychelles, however, have had no outbreak of foot-

Composition of Russian food imports from EU REUTERS

ndia looks to cash in on a potentially huge Russian market in the wake of the plunging/worsening economic ties between Russia and the West. After enduring a few rounds of sanctions from the West over Russia’s alleged role in supporting rebels in eastern Ukraine, Moscow hit back with a one-year ban on fruits, vegetables, meat, fish, milk and dairy imports from the US, the European Union, Australia, Canada and Norway. The sanctions announced by Russian Prime Minister Dmitry Medvedev follow the latest round of punitive actions from the West, under which Russia’s stateowned banks were cut off from western capital markets, and its defence and energy firms were banned from importing hi-tech western equipment. The European Union stands to lose the most from the Russian ban on food imports. According to data from the Institute for Complex Strategic Studies (ICSS), Russia buys 31.5 percent of its meat, 42.6 percent of its dairy products and 32 percent of its vegetables from Europe. In absolute terms, the EU could lose up to $16 billion. The Russian government is looking to encourage domestic food production and stimulate import substitution. However, in the short run, the only viable option is to import food from other markets. Russia is “unable to immediately fill the gap with its own products,” says Alexei Skopin, head of the Department of Regional Economy and Economic Geography at the Higher School of Economics in Moscow. “With the right policy, only in a year 15-20 percent of the goods affected by the sanctions would have been substituted with Russian products. In the meantime, Russia will have to depend on foreign suppliers.”

Experts believe that products imported from the EU and US can be substituted with goods from Asia and Latin America.

$16 bn

‘Indian food items very competitive in price’

i.e. the amount EU could lose due to Russia’s food ban. Currently, Russia buys 31.5 percent of its meat, 42.6 percent of dairy products and 32 percent of vegetables from Europe.

$540 m is the value of total dairy products exported by India last ﬁnancial year. Other meat exported by India amounted to $4.3 billion in 20132014.

and-mouth disease. Russia had previously banned imports of egg products from India over sanitary concerns but the matter was amicably resolved in February after assurances from the Indian government. Russia also imports around 50 percent of its dry milk and cheese from abroad, mainly from the former Soviet Baltic republics and Finland. Analysts believe that Indian exporters can tap this market as well. India exported $540 million worth of dairy products in the last financial year according to APEDA figures. They, however, add that India Inc.

India’s Ministry of Commerce and Industry is closely monitoring trade relations between Russia and the Western countries and has already sent recommendations about increasing exports to Russia to the Indian Export Promotion Council, Russian Trade Representative in India Yaroslav Tarasyuk told RIBR. “We are talking about more than two dozen commodities, including certain types of machinery and equipment, vehicles and parts and components for aircraft and aerospace industry, pharmaceuticals, plastics and meat,” he said.

needs a focussed strategy for the Russian market. “Indian producers and exporters have to improve the quality of their products and services, including timely delivery and quality packaging,” says Uday Mandavia, an independent business consultant who has been working with Russian companies since 1999. “Indian products, other than tea, are not associated with good quality in Russia; so better marketing and awareness strategies are also required,” he adds. The ‘Made in India’ trade show that is being organised by the Federation of Indian

“India is ready to supply to Russia significant volumes of buffalo meat, egg powder, seafood and nuts,” explained Tarasyuk. “Indian food items are very competitive in price. The only thing that has hindered their expansion into the Russian market was the strict sanitary and phytosanitary requirements,” he said. Thus, if India wants to take advantage of the current situation, it will have to upgrade veterinary supervision for producers of goods directed towards the countries of the Customs Union.

Opinion Poll: Will Western sanctions harm Russia?

Export Organisations, with the support of the Indian Embassy, in Moscow next month will provide an opportunity to around 125 Indian companies to showcase their diverse products in Moscow. Indian exporters also stands to gain from a wider market with the Eurasian Economic Union, comprising Russia, Belarus and Kazakhstan, set to come into effect on January 1, 2015. India is negotiating a comprehensive economic partnership with the union and Russia’s immediate need for food products may give it a fresh impetus to speed up talks.

HIDDEN AGENDA

Figure out: Why is US courting India?

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In early August, suddenly three senior American officials, in quick succession, visited India –- Secretary of State John Kerry, Secretary of Commerce Penny Pritzker and Defence Secretary Chuck Hagel. There are many reasons for such attention being lavished on India, but it’s time to figure out the real motive. It’s a desire to turn India not just into a partner, but also an ally and proponent of American interests in Asia and possibly wrest it out of the BRICS – a union of countries that in the medium term will be able to break the monopoly of the US in the world economy and politics. Amid media frenzy, many commentators forgot that India’s Prime Minister Narendra Modi was considered a persona non grata in the US, and the State Department had

denied him an entry visa. Now the US is courting Modi and is eagerly looking to welcome him in September. There are a host of other unresolved issues. Despite heavy-duty lobbying, Mr Kerry and Ms Pritzker failed to make India change its position on the draft agreement in the WTO on the easing of trade rules. The American emissaries also did not succeed in making amends for the negative feelings caused by shocking revelations about American spying on the leaders of the Bharatiya Janata Party in India. These issues are not just bilateral; it is reflective of the US desire to preserve a unipolar world order that has led to its stubborn refusal to admit its defeat in the Greater Middle East. This same striving underlies the current crisis in Ukraine, initiated by the US in order to achieve several strategic objectives –

to drive a wedge in relations between Russia and the EU and grab a larger share of the European gas market. One wonders, why is India needed here? Failures of American foreign policy and the increasing complexity of the economy have led to the fact that Washington simply does not have the resources to realise its much-hyped Asia pivot policy. Meanwhile, China – the main geopolitical rival of the US – is not only growing in economic power, but also political influence. Therefore, the main strategic goal of Washington in Asia and the Asia-Pacific Region has become the shifting of the burden of confrontation with China on regional powers, primarily Japan and India. However, the government of Narendra Modi has demonstrated that India’s focus will be on the development of good relations with its neighbours in the region, including China. This was evident in Modi’s participation in the highly successful BRICS Summit in Brazil, and will be again reflected in the visit of Chinese President Xi Jinping to Delhi in September. Against the background of the US’ fears of the dollar losing its monopoly, the BRICS initiative on the creation of the Development Bank, in which the calculations will be made in local currencies, poses a huge threat, in the long term, to the monopoly of the US and international financial institutions established under the Bretton Woods system. In the future, in two or three

decades, what looks like a timid sprout (BRICS economies) is capable of growing into a mighty tree. This explains the increased activity of the US in the “Indian Direction”. Now it seems that for Washington, the most important task is to drive a wedge between the BRICS countries. This explains the policy of imposing sanctions against Russia, and the desire to represent Russia in the role of the “aggressor”, and in the unambiguous threats against China, and attempts to flirt with India. If Washington succeeds in pulling out at least one “Eurasian” link from the large BRICS association, then a tombstone will be placed on the entire association, which may allow the US to keep the inertia (or illusion) of a unipolar world for a few more years. Therefore, attempts to flirt with India should not be taken as a sincere desire for mutually beneficial cooperation. In all of its foreign policy actions, the US has always pursued only its own interests. Thus, if at this stage those interests make it necessary to establish relations with a particular country, it does not mean that after a while the US will not make a turn in the opposite direction. The views expressed are of the author’s only.

The author’s blog indrus.in/ blogs/ the_ outsiders_insight

IN ASSOCIATION WITH ROSSIYSKAYA GAZETA, RUSSIA

E |C |O |N |O |M |Y WEDNESDAY AUGUST 13, 2014

NEWS

ECONOMIC TIES: It’s time for Russian companies to focus on FDI and investing in India’s infrastructure development projects

Indian, Russian ﬁrms to manufacture 2 space satellites

PHOTOSHOT/VOSTOCK-PHOTO

India and Russia have boosted space cooperation as Dauria Aerospace and Bangalore-based Aniara Communications signed an agreement on July 16 for the manufacture of two space satellites. A contract on the design and production of the satellites was signed on the sidelines of the Farnborough International Airshow in the UK. (RIBR)

Sukhoi to sign another contract with India on FGFA Russia’s Sukhoi aircraft manufacturer plans to sign another contract with India in the framework of the joint project for the construction of a ﬁfth generation multipurpose combat jet, Alexander Klementyev, a deputy director general of Sukhoi, told Itar-Tass. “We hope the contract [for experimental design works] will be signed soon,” he said. The intergovernmental agreement was signed in 2007. RIBR

India asks Russia to upgrade two Kilo Class submarines India has asked Russia to upgrade two of its submarines, Igor Vilnit, directorgeneral of the Rubin Central Maritime Design Bureau, said recently. “The Indian government ﬁled a request to the Russian Federal Service for Military-Technical Cooperation to extend the life of two Russian Kilo Class submarines,” he said. Specialists of the Zvyozdochka ship repair centre and the Rubin bureau are expected to leave for India soon. RIBR

The NDA government’s reforms have fuelled hopes for stronger Indo-Russia economic ties. ALEXANDRA KATZ RIBR

hile Russian President Vladimir Putin’s meeting with India’s Prime Minister Narendra Modi in Brazil was seen as successful in diplomatic circles, the business community has its own way of measuring the changes that the new government in Delhi can bring to IndoRussian economic relations. With the possibility of raising bilateral trade from $15 billion to around $20 billion, as suggested by President Putin, it’s time for various business sectors to get their act together. “We see continuous improvements in energy, oil and gas sectors, petrochemicals, machinery, telecommunication, cosmos, infrastructure, including railway transport and metro,” said Yaroslav Tarasyuk, Russia’s Trade Commissioner in India. “The contacts in such fields as manufacturing and supplying of medical equipment and pharmaceutical products are increasing.” He added that in in the months ahead, the Trade Representation is planning to conduct a series of inter-sessional meetings of the India–Russia Inter-Governmental Commission for Trade, Economic,

Scientific, Technical and Cultural Cooperation (IRIGC–TEC), IndoRussian trade and investment forum and traditional Russian-Indian Summit in December. Although the target of $15 billion seemed reasonable, according to the Federal Customs Department of Russia, in 2013, Indo-Russian bilateral trade decreased by 5 percent to $10 billion. Russian exports dropped by 7.67 percent and stood at $6.9 billion and imports decreased by 1.6 percent to $3 billion. In the first three months of 2014, bilateral trade was just $2.28 billion which is 5.4 percent less than the same period a year earlier. This year, Russia’s exports to India dropped by 6.73 percent and India’s exports to Russia dropped by 2.4 percent. There could be many reasons behind the decline. However, it is clear that India still needs natural resources and Russia will keep providing it to India. Experts say that with new initiatives taken by the Modi government, businesses on both sides should look beyond these sectors. “I believe with the new government in power, there will be improvements in all industries, not only energy or

PRESS PHOTO

The Federation of Indian Export Organisations (FIEO) is organising India Show in Moscow on September 24-26 at the CROCUS EXPO Exhibition Center in Moscow, Russia. The initiative is supported by India’s Ministry of Commerce and Industry. The exhibitors will showcase a wide range of products and services such as aeronautics, atomic energy, automotive, biotech, chemicals and allied products, adhesives, construction, cosmetics, engineering, food and beverage, telecom and textile. RIBR

Russian business banks on Modi

Russia’s Trade Representative in India, Yaroslav Tarasyuk, believes that bilateral trade and economic relations are eyeing a new period of growth. Read V.Tarasyuk’s interview in.rbth.com/economics/ defence,” Vladislav Voitsekhovich, Managing Director of the India branch of Sberbank of Russia JSC told RIR. “Although India will still require a lot of resources, be it diamonds or oil or gas or steel, it is the best time to think about FDI. Maybe not directly in India, but via Singapore, but it makes good sense to enter the market now, at the low point. And we also should think of creating possibilities for Indian business to invest in Russia.” Voitsekhovich says Russian compa-

CURRENCY: Focus on exchange trading of rupee, enhancing bilateral trade

India, Russia may switch from dollar to rupee/ruble trade New Delhi and Moscow plan to set up a working group by September to set up new mechanisms.

nies should pay attention to ambitious plans of the Indian government for infrastructure development projects mentioned in the new budget, especially considering that the Reserve Bank of India allowed lenders to sell long-term bonds exempted from reserve requirements to boost funding for infrastructure and affordable housing. “ All parties will benefit from it. And I believe those Russian companies who are into infrastructure and construc-

RIBR

ndia and Russia are planning to switch from US dollar to direct payments using their own national currencies. By the end of September, they will establish a working group to develop the corresponding mechanisms. This decision was announced by G. Padmanaban, the executive director of the Reserve Bank of India, after a meeting with first deputy chair of the Bank of Russia, Ksenia Yudayeva. The group will be formed no later than the end of September this year, press service of the Bank of Russia told RIBR. “Russian-Indian dialogue on this topic started a few years ago, long before recent political developments. However, significant progress in the use of national currencies has not yet occurred. Therefore, participants in the dialogue have decided to now intensify this work, by creating a special working group,” said a representative of Russia’s Central Bank. Theoretically, the transition to settlements using national currencies between Russia and India can be made tomorrow. However, a single decision by the two governments is not enough

– because the choice of contract currency used in settlements is made by the businesses participating in foreign trade, exporters and importers. To make sure this choice is made in favour of rubles or rupees, it is necessary that it is beneficial to both parties in a transaction, and that the settlement procedure is not more expensive and burdensome. Now, making settlements in national currencies is often more expensive and more complicated than in using dollars or euros. “Creating the best possible environment is the task of national regulators, including exchange control bodies and tax authorities. The commercial banks servicing foreign trade transactions and settlements of these transactions must work on this. The goal of the new group is to develop specific measures that would create a convenient regulatory environment for settlements in national currencies and effective schemes for these settlements,” say officials at the Central Bank of Russia. The problem is compounded by the fact that Russia has not yet been able to organise exchange trading of the Indian currency, as has already been achieved with the Ruble/Yuan pair. The main problem lies in the fact that for now the

Russia and Iran have signed a pact to intensify ties in trade, investment, oil and infrastructure Kommersant

A rupee is a non-convertible currency. During the discussions, the Russian representatives will have to convince the Indian side to remove the current corresponding restrictions. During the first stage, 8-10 large Russian banks actively working with India, including through their “affiliates” in India, may be interested. One can add another 5-6 Indian banks operating in the Russian market (two of them – through their “affiliates” in Russia). As the amount of settlements grows, the number of banks interested in this work will obviously grow as well – as is happening now with the Chinese currency. Anna Bodrova, an analyst at Alpari, says that the current India-Russia trade volume needs to increase by at least 25-30 per cent to make settlements using national currencies viable.

tion projects should consider these opportunities. More good news comes for the defence sector as the FDI investment limit was raised from 26 percent to 49 percent,” he says. He underlined that Russia needs to take into account that given sanctions against Russian companies, exploring cooperation with Asia –- and it should not be limited to China -- is a good chance for Russian business. Some industries are looking for clearer policies, revised rules and regulations. “The company is looking forward to issues relating to pricing and subsequent auction of 800 MHz spectrum band being sorted out within this calendar year, so that a level playing field is maintained,” Dmitry Shukov, Chief Executive of Sistema Shyam TeleServices Ltd. (SSTL), owned by the Russian Sistema JSFC, told RIBR. The diamond industry, on its part, expects new vectors of development. “Modi has something to show in Gujarat. Business there is at a higher level and more transparent. It’s a question though whether he will be able to manage the huge bureaucratic machine that sits in Delhi and other states. This is still an open question,” Alex Popov, chairman of the World Diamond Mark Foundation (WDMF) and chairman of Indo-Russian Jewellery Foundation, told RIBR.

Standoﬀ with West drives Russia to step up economic ties with Iran YURI BARSUKOV

VIKTOR KUZMIN

PHOTOSHOT/VOSTOCK-PHOTO

FIEO to hold India Show in Moscow on September 24-26

mid a worsening stand-off with the West, Russia has signed a memorandum of understanding (MoU) with Iran to intensify economic cooperation. The pact, valid for five years, envisages a comprehensive multi-billion dollar deal for trade in the oil sector between the two countries. “The memorandum provides for the expansion of trade and economic cooperation in the fields of construction and reconstruction of power generating capacity, the development of power grid infrastructure, the oil and gas sector, as well as the supply of machinery, equipment and consumer goods,” the Russian Ministry of Energy said. The ministry clarified that specific contracts within these areas will be discussed in Tehran on September 9-10 at the meeting of the Intergovernmental Commission of the Russian Federation and Iran, which is co-chaired by the ministers of economy of both countries. The backbone of greater economic cooperation between Moscow and Tehran is the purchase of Iranian oil by Russia. Initially, the two sides talked about very large quantities – up to 25

million tonnes per year, which is about a quarter of all Iranian oil. Now, according to Kommersant, the two sides have agreed to a more modest volume – around 2.5-3 million tonnes per year. Iran will sell its oil slightly cheaper than the cost of Brent. The annual contract could reach $2.35 billion. Even 3 million tonnes per year, which is 1.5 percent of Iran’s production, is a significant amount, according to experts. Investkafe analyst Gregory Birge says this amount is equal to 10 percent of Russia’s oil exports to the Asia-Pacific and 2 percent of its oil exports to EU countries. According to analysts, Russia may re-export the Iranian oil in raw form, or it can be processed and exported as petroleum products, or it can also be used in the domestic market. The main problem with cooperation in the oil sector is finding a buyer that would import Iranian oil despite an embargo. Russia is looking at China and African countries as potential buyers. Analysts say the the deteriorating relations between Russia and the West was a key factor propelling Moscow and Tehran to sign an MoU. The intensifying competition for the Iranian market is another reason bringing the two countries closer.

IN ASSOCIATION WITH ROSSIYSKAYA GAZETA, RUSSIA

D |E |F |E |N |C |E WEDNESDAY AUGUST 13, 2014

Tolpar: Russian knife art carves a niche in India

DEFENCE: Teams from India and China participating in Tank Biathlon

A Russian technique of knife-fighting is set to become popular in India as Maharashtra police personnel find it useful for commando training. PRIYANKA GERA Specially for RIBR

The competition seeks to test armoured vehicles and bolster inter-state military cooperation. MAXIM LEGUYENKO RIBR

he First International Tank Biathlon championship in Alabino Firing Range has brought many nations together in the Moscow region to match their skills and forge friendships. The teams from India and China are also participating in this competition. In the finals on August 16, three crews from each national team will make three four-kilometer rounds on one tank (with crew replacement). The so-called “tank biathlon” discipline invented by the Russian military last year is analogous to Olympic biathlon, with one difference: it includes tanks. The Tank Biathlon championship kicked off on August 4. Russia, India, China, Angola, Armenia, Belarus, Venezuela, Kazakhstan, Kyrgyzstan, Kuwait, Mongolia and Serbia are taking part in this unique event. Over 20 states have sent in their delegations as observers. Each country is represented by four crews: three main ones and one backup. “The constructed course will not only determine how prepared servicemen are, but also test the strength of the armoured vehicles,” said Russian Defence Minister Sergey Shoygu. He underlined that this championship is a testament to the desire and willingness of Russia to work on the development of inter-state partnerships in the military sphere. He added that the current participating countries may be regarded as the real and potential partners of Russia in Military-Technical Cooperation.

There are four phases to the Tank Biathlon competition: individual races, 3-kilometre sprints, pursuit and relay races. The length of the course is 7.1 km and includes a high-speed section, firing ranges, obstacles such as passage through minefields, two uphill slopes, fiery band, anti-tank ditch, obstacle belt and manoeuvring, mounds, two escarpments, fords, and a model of a track bridge. Struggle for leadership The first international tank biathlon, with the active support of the Russian Ministry of Defence, was held a year ago. This event was a resounding success, and from it came the idea to create a full-fledged international tank biathlon as a form of military sports competition. Many countries, including NATO countries, were keen to participate in the international championship. The teams were expected to compete, using their own combat vehicles, which would further increase interest in this discipline. However, the refusal of the Nato countries to participate due to the Ukraine crisis, the championship participants competed on Russian T-72 tanks. Russia has readied over 60 tanks for the competition. The tanks are dyed in four types of camouflage colour, chiefly of the yellow, red, blue and green hues. The yellow tanks will be used by the performing teams from Angola, Kuwait and India, the blue ones by Kazakhstan, Armenia and Belarus, the red ones by Mongolia, Russia and Venezuela, and the green ones by Serbia, China and Kyrgyzstan.

T-72 versus Chinese 96A The rules of the tank biathlon do not prohibit tank crews from using machines of other brands. The Chinese team arrived in Alabino with their Type 96A tanks. Put into service in 1997, the Type 96A forms the foundation of the PLA armoured units. This machine is markedly different from the T-72. It is 5.5 tonnes heavier than the Russian tank. However, its maximum speed (65 km/h) exceeds the rate of the Russian machine by 5 km/h. The Chinese highspeed tank sports a boosted 1,000-hp diesel engine. This engine is a further improvement of China’s diesel tank 12150L7-BW, and thus continues the line of the Soviet V-54 engine. Type 96A gun is an exact replica of the Russian 2A46M gun and uses ammunition – 42 shells, 22 of which are located in the autoloader. Like in the Russian tank, the Chinese firing rate of the gun is eight rounds per minute. The main differences between the Type 96A and Russian machines lie in their appearances. The Type 96A has a characteristic angular shape, thus slightly reminiscent of the German Leopard 1. During the competition, the Type 96A showed good fighting and technical capacity. An unfortunate loss of a caterpillar track kept the Chinese from overtaking the Russians. Like last year, each member of the winning crew in the finals will receive a prize – a new car from the Uralvagonzavod (UVZ) Corporation. This time the prize vehicle will be the Russian SUV – UAZ Patriot, fully loaded. The keys will be handed out to the winners on the last day of the competition, August 16, after the results of the championship are tallied.

SERGEY MIKHEEV/RG

Blending friendly ties, sport and warfare

n April this year a Russian martial art system of knife-fighting, known as Tolpar, was introduced in Mumbai. The chief instructor of the school, Kirill Lyubin, and his team conducted a series of training sessions for martial art practitioners and police personnel. These events included a star-studded demonstration at Naigaon police headquarters for women constables and volunteers of Mukti, an NGO. Ace actor Akshay Kumar, a martial arts expert, was the star guest at the event. “I realised he was a VIP guest at the grand event,” Lyubin recalls. “He arrived early and I taught him some of the technical elements of knife fighting so he could use them in his movies.” Akshay Kumar spoke eloquently about the usefulness of Tolpar for self-defence. “I think for knife fighting you do not need power, but you need to be intelligent to tackle the situation. I am sure this technique will be helpful for those undergoing training.” Given such star endorsement and the enthusiastic response, Tolpar looks set to get popular in the country. Recently the school announced the launch of its first branch in association with the Zen Kickboxing Academy at Chembur, Mumbai. Multi-format martial art expert, Mayur Bansode, will lead this branch. “A lot of people are interested in Tolpar. The training sessions will start soon. I’ve myself learnt from Lyubin and I’ll also visit them in Russia to train further,” says Bansode. Lyubin also plans to tour the country more often. “We were received very warmly. People here are very friendly and most of all I respect their spirit for learning new things. I hope to come to India twice every year,” says Lyubin, who loves Indian cuisine. “I love the hot and spicy food. I start my mornings with masala tea and chyawanprash!”

Kirill Lyubin provides Tolpar training at the Maharashtra Police Academy. Source: Tigers Gym

The proponents of Tolpar see the potential of this form to evolve into a competitive sport, which could be as popular as fencing. Lyubin’s team had also conducted training sessions for the Maharashtra Police Academy and commandos of Nashik Police. This effort was supported by Daniel Issac who has extensive experience of training defence personnel in martial arts. “There were close to 100 participants at the police academy and they were all excited and asked a lot of questions,” says Issac. The Nashik police have shown a keen interest to include knife fighting in their commando training programme. The Tolpar system is especially relevant for armed combat as it has evolved from short blade knife tech-

niques that were used by the Soviet Special Forces in the 80s. “We have created a synthesis of various Eastern and Western approaches. Unlike in the West, there is no binding to some specific type of knife. We’ve minimum basic movements which allows for combinations of offensive and defensive actions,” explains Lyubin. The proponents of Tolpar see the potential of knife fighting to evolve into a competitive sport. “It is a relatively new format in the category of martial arts that involve the use of a weapon and it is gaining popularity,” says Lyubin. Both Issac and Bansode say they’ve already initiated efforts to begin training athletes. Knives and safety gear have been ordered from Russia but it’ll take a couple of years for knife fighting to be recognised as a sport. “I’ve a lot of work set out for me, seminars and workshops. I’ve a new sport to be established,” says an upbeat Lyubin.

THE LONG VIEW

Atomic bonding: India, Russia signal scaling up cooperation MARK COOPER Expert in the nuclear power industry

ndia’s Prime Minister Narendra Modi, during a meeting on the margins of the BRICS summit in Brazil, invited President Vladimir Putin to visit not only India’s capital, New Delhi, in December 2014, but also the state of Tamil Nadu, where a nuclear power plant is being built based on Russian technology. “I think this is a good opportunity to visit the nuclear power plant in Kudankulam. This will be a very good visit; we have a joint project there,” said the Indian prime minister. It’s not often that the head of one state invites his counterpart to visit his nuclear facility. This, first of all, demonstrates the trust that India and Russia have towards each other. However, without a doubt, it also demonstrates the confidence put in Rosatom’s technologies, thanks to which one of the world’s most modern NPPs has sprung up in India. By the way, it is quite symbolic that the first power-generating unit at the Kudankulam NPP was powered up to full capacity in the year of the 60th anniversary of the commissioning of the world’s first NPP in Obninsk (USSR). This plant has been built by Indian specialists based on the Russian project, and has all turned

out very well. I am sure that very soon we will celebrate the commissioning of the second unit at this plant. Is it beneficial for India to cooperate with Rosatom? The importance of the launch of such a facility in the power industry as a nuclear plant is difficult to overestimate for India’s booming economy. The two power units with a capacity of 1,000 megawatts generate about

Modi’s invitation to Putin to visit Kudankulam Nuclear Power Plant during his trip to India shows deep trust between the two countries. two billion kilowatt-hours of electric power per year, which should alleviate the problem of electric power shortages in south India. However, a stable, full-fledged power supply is required in other regions of the country as well. Therefore, Rosatom seeks not only to preserve but also expand this mutually beneficial partnership. In this regard, the invitation to President Putin to visit the nuclear facility also means that the partners wish to cooperate

further in the nuclear sphere. In particular, the focus is now on joint construction of the second stage of the Kudankulam NPP – the third and fourth power units. Like the first two, these twins with VVER-1000 reactors, in terms of their technical and economic parameters and security systems, can be classified as fourth generation atomic energy facilities. Russia and India signed the General Framework Agreement for the construction of the second stage of the Kudankulam NPP as far back as in April. However, the interaction of nuclear scientists from the two countries cannot be limited to just the nuclear power plant in principle. Indian scientists have already made significant progress in a number of nuclear areas. For several years now, a working group has been identifying areas of mutual interest in scientific and technical cooperation. These fields are fast reactors, the thorium fuel cycle, blanket acceleration systems, high-current proton and ion accelerators and controlled thermonuclear fusion. A separate topic being discussed is the construction of a nuclear facility for distillation desalination systems that would resolve the problem of water supply. Rosatom willingly shares its technologies, experiences and competencies with India, which is justified economically, as this opens up the possibility not only to develop new products in the nuclear fuel cycle, but also to jointly enter the markets of third countries. I would like to state that long-term close bilateral economic cooperation, including that within the framework of BRICS, has provided powerful new impetus to the development of the two countries. The partners’ relationship involves openness and the mutually beneficial exchange of the latest cutting-edge achievements in the field of science and technology, including such a super-technological sphere as the nuclear power industry. And the nuclear power plant in Kudankulam is a technological jewel which the partners can be proud of.

IN ASSOCIATION WITH ROSSIYSKAYA GAZETA, RUSSIA

T |R |A |V |E |L WEDNESDAY AUGUST 13, 2014

TRAVEL: Russia is bristling with tourist delights that remind you of other locations in the world, including Australia and Chinese Stone Forest. 9

10 places: A taste of Italy, Tibet, Mt. Fuji GEOPHOTO(3)

From the sandy beaches of the Far East and Swiss-like villages nestled in South Siberia to German villages on the Baltic coast – it’s all in Russia! DARIA GONZALEZ

RIBR

2. A German village? Almost. The town of Zelenogradsk is located in the Russian Baltic enclave of Kaliningrad, originally known as Konigsberg. Founded in 1255 by knights of the Teutonic Order, Konigsberg became the capital of the Duchy of Prussia. Kaliningrad was a part of the Third Reich and was taken over by the Soviet Union after World War II. Today, the enclave is home to Germans, Greeks, Armenians, Poles, Russians, and Lithuanians. 3. Istanbul? Although Vladivostok is far away from Istanbul, there is also a bay here called the Golden Horn. A cable-stayed bridge was built across it in 2012, ahead of the APEC summit. However, Vladivostok is more often compared to San Francisco than Istanbul. Soviet leader Nikita Khrushchev even decided to build a cable railway network in the hilly city in order to transform it into “another San Francisco”. However,

Vladivostok still retains its unique Sino-Russian culture. 4. The Chinese Stone Forest? No, this is a different UNESCO World Heritage Site called the Lena Pillars. The unique stone features started to form 540-560 million years ago. The for7 ested red sandstone pillars reflect majestically in the calm waters of the Lena River, which also serves as the main way to access them, typically via a small boat from Yakutsk. Although it takes less time to travel from Europe to the Lena Pillars than to the Stone Forest, it is still an exhausting journey, which involves flying into Yakutsk and then spending a few hours on a boat or a ferry. 5. Switzerland? Almost, but 6,500 km farther east, these are actually the Altai Mountains in Southern Siberia on the border with Mongolia. Due to a lack of roads and other infrastructure in the remote mountainous area, the breathtaking

EXPERIMENTARIUM Budding scientists will enjoy the Experimentarium, a center that lets children not only look at exhibits, but also participate in real experiments. At this giant complex, visitors can see over 200 unusual exhibits, ranging from the cab of American 18-wheeler to the layout of the human eye. Through exploring the exhibits, children can learn about the basics of anatomy, mechanics, optics, acoustics, and electromagnetism. Address: 46/2 Butyrskaya, Moscow. Telephone: +7 (495) 989-73-94; Hours of operation: Monday through Friday from 9:30 am to 7:00 pm, Saturday, Sunday, and holidays from 10:00 am to 8:00 pm. For individual ticket and membership prices, call or visit the website. Best for ages 7 and up.

ASYA ORLOVA

1. Tibet? Ivolginsky Datsan. This monastery is situated 100 km from Lake Baikal, not far from the City of Ulan-Ude in the Republic of Buryatia. Like the Buddhist population of Russia, it is virtually unknown to the outside world. The monastery serves as the residence of the Leader of the Buddhists of Russia, and comprises seven different temples and a university where Buddhist lamas are trained to serve in temples of Buryatia. Ulan-Ude is not only famous for its Buddhist monastery, but also for the world’s largest bust of Vladimir Lenin.

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Altai Mountains remain one of the most inaccessible places in Russia. 6. Ha Long Bay? No, this is actually the Avacha Bay, located on the Kamchatka Peninsula. At 24 km long, it is the second largest bay in the world after Port Jackson in Australia. The bay is so large that all the ships in the world could fit into it.

the largest port in Russia and has long been Russia’s “window to Europe”. This tourist capital of Russia is known for its long seafronts and romantic white nights.

7. Italy? Sometimes St. Petersburg is called the Venice of the North, but that does not make it an Italian city. This city is

8. Easter Island? Stone idols are a common sight for the islands of the Indian and Pacific oceans, but not for a subarctic pla-

PLANNING A TRIP FOR ADULTS TO MOSCOW IS EASY. FIRST, COMES THE KREMLIN, THEN RED SQUARE, AND THEN OTHER SITES BASED ON INTERESTS AND PREFERENCES. FINDING CREATIVE WAYS TO SHOW THE RUSSIAN CAPITAL TO A CHILD IS, HOWEVER, A MORE DIFFICULT TASK. BUT IF YOU DO YOUR HOMEWORK, THERE ARE PLENTY OF UNIQUE ADVENTURES FOR KIDS TO BE FOUND OFF THE BEATEN PATH.

MINERALOGICAL MUSEUM The Fersman Mineralogical Museum is a must-see for inquisitive children, and not just because there are fuzzy stones to touch. The museum features chunks of meteorites, including one that was added to the collection of the Russian Academy of Sciences in 1749. But the most important part of the exhibit is its collection of minerals of all shapes, colors, and sizes: quartz that looks like a sea urchin, sprigs of bluestone covered in dew, fuzzy natrolite, and purple elbaite. Address: 18/2 Leninsky Prospekt, Moscow. Telephone: +7 (495) 954-39-00, +7 (495) 954-18-59; Hours of operation: Everyday from 11:00 am to 5:00 pm, except for Monday, Tuesday, and the last Thursday of the month. Adults, 2 euro; Children, 1 euro (entrance is free on Wednesdays). Best for ages 3 and up.

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teau deep in the taiga. The giant stone “idols”, located on the remote Northern Urals Manpupuner plateau in the Komi Republic, are actually naturally occurring rock formations, which were carved out by the wind over thousands of years. 9. Mount Fuji? The Kronotsky volcano is located in an eponymous national park on the Kamchatka Peninsula, and may seem almost identical to Mount Fuji to the untrained observer. However, this is not Japan, but Russia. The Kronotsky

MUSEUM OF PALEONTOLOGY Dinosaur lovers of all ages can easily spend an afternoon here among the skeletons of animals that died millions of years ago, including plesiosaurs with sad eyes, and giant mammoths. Address: 123 Profsoyuznaya Street, Moscow. Telephone: +7 (495) 339-15-00, +7 (495) 339-45-44; Hours of operation: Everyday from 11:00 am to 6:00 pm, except for Monday and Tuesday. Last ticket sales at 5:15 pm. Adults, 3 euro; Students, 1.5 euro; children under 6, free. Best for ages 4 and up.

DARWIN MUSEUM Visitors to the State Darwin Museum can see animatronic dinosaurs; measure their weight in mice, bears and elephants or watch ﬁlms on giant screens. In the “Living Planet” multimedia show, guests can take a trip to a unique underwater world and see the cabin of Charles Darwin’s ship The Beagle as well as a timeline of life from prehistory to today. The museum features an enormous collection of taxidermied animals, including 718 birds. The Darwin museum is a perfect destination for kids interested in the natural sciences. Address: 57 Vavilov Street, Moscow. Telephone: +7 (499) 783-22-53; Hours of operation: Everyday from 10:00 am to 6:00 pm, except for Monday and the last Friday of the month. Adults, 7 euros; Students, 2 euros; children under 6, free

National Park is one of the oldest natural reserves in Russia. It is home to many geysers and thermal springs. The geyser fields at Kronotsky have been officially named one of the Seven Wonders of Russia. 10. Australia? It is difficult to mix up Melbourne and Vladivostok, but the coastline of the Sea of Japan could easily be mistaken for the Australian coast. Many endangered animals, such as the Siberian tiger, can be found in Maritime Territory, or Primorye, as this region is known in Russian. The region is also sometimes called Russia’s gateway to Asia.

MUSEUM OF ASTRONAUTICS Kids who dream of interplanetary travel will be thrilled with a visit to the Memorial Museum of Astronautics. This museum has a real Mission Control Center – a giant screen that shows where the International Space Station is currently located and how the astronauts live there. The museum also features a ride that simulates a space ﬂight. At this museum, guests can stop in the Mir space station and wander among dozens of space suits, containers for growing orchids in space and ejection seats. Address: 111 Prospekt Mira, Moscow. Telephone: +7 (495) 683-79-14; Hours of operation: Monday through Sunday from 11:00 am to 7:00 pm. Tickets, 3 euro. Best for ages 4 and up.

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