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India and Russia united in space
By Sergei Blagov

MOSCOW - India and Russia on Wednesday decided to jointly develop a major space program, signaling new horizons in cooperation between the two countries. During Indian Prime Minister Atal Bihari Vajpayee's three-day visit, the Russian and Indian space agencies signed a deal pledging to cooperate in space research, including exploration of the moon.

Yuri Koptev, the head of the Russian Aerospace Agency, Rosaviakosmos, confirmed the news in televised remarks, but declined to reveal financial and other details. Russian media speculated that a joint spacecraft could be sent to the moon.

India's Foreign Secretary Kanwal Sibal said that Russia's plans to create a space-based navigation system comparable to America's Global Positioning System and Delhi's unmanned moon mission had emerged as areas for potential cooperation. "Space cooperation is a very important area of bilateral cooperation," Sibal said.

Russia, he said, had expressed an interest in assisting in Chandrayaan-I, India's mission to send a spacecraft to the moon in 2008. Referring to Russia's proposed Global Orbiting Navigation Satellite System (Glonass), he said that there was "major potential" for cooperation in the fabrication and launch of satellites.

On the political front, the subject of a "multipolar world order" was a major theme during talks between Russian President Vladimir Putin and Vajpayee, and the leaders signed a joint statement as well as a declaration on global challenges and threats to international security, which among other things stated that no country or group of countries could or should monopolize the right to rule the world by "humanitarian or other interventions".

Putin and Vajpayee also discussed military ties, trade and international issues, and Putin hailed bilateral military cooperation between the countries as "promising".

During the Cold War, the former Soviet Union and India maintained close ties, and Moscow was India's biggest arms supplier and an important trade partner. New Delhi has bought some US$30 billion worth of weapons from Moscow since the 1960s, and Russian weapons account for nearly three quarters of India's arsenal.

India and Russia have agreed to extend to 2010 a long-term program of military-technical cooperation signed in 1994 and initially limited to the year 2000. India imported Russian arms worth $3.5 billion between 1990 and 1996.

Russia and India have agreed on cooperation in building a new fighter aircraft and joint production of the Brahmos cruise missile. The Brahmos, expected to be deployed in 2004, based on the Russian Yakhont anti-ship missile, has a range of 300 kilometers and flies at twice the speed of sound. India is due to start manufacturing Su-30MKIs under license at plants in India by as soon as 2004. A long-awaited $1.5 billion deal on the purchase of the Russian aircraft carrier Admiral Gorshkov, initially due to be clinched by the end of 2001, is now expected by the end of this month.

Moscow and Delhi believe that the current level of bilateral commercial trade is not enough. India expects that trade with Russia could reach $5 billion a year by 2005, the RIA news agency quoted the head of the Indian Federation of Chambers of Commerce, A K Mutya, as saying.

Bilateral trade turnover between Russia and India slipped to some $1.5 billion last year from around $4 billion a year in the early 1990s. Indo-Russian trade includes tea, tobacco and pharmaceuticals from India and metal products and fertilizers from Russia. Moscow had hoped to increase bilateral trade to $5 billion annually by 2000.

During Vajpayee's visit to Moscow, Russian and Indian officials reportedly discussed India's Oil and Natural Gas Corp's (ONGC) investment in Russia, as well as cooperation on the Kudamkulan nuclear power project at an estimated cost of $2.6 billion. The project involves Russia building the plant in India's southern Tamil Nadu state, with two 1,000 megawatt reactors.

Three years ago, India's ONGC acquired a 20 percent stake in an offshore oil and natural gas project in Russia. ONGC insisted on a deferred payment method to reduce its immediate risk. ONGC paid Russian state-owned Rosneft about $315 million for the 20 percent stake - $90 million to compensate for Rosneft's expenditures in Sakhalin 1 and $225 million as a premium for ONGC's future participation in the project.

ONGC's total spending on the Sakhalin project is expected to reach $2 billion over a 10 to 15-year period. This includes financing Rosneft's share of future investment in the form of a loan. Rosneft would repay the loan out of its profits made from Sakhalin 1 at LIBOR plus 3 percent in a scheme designed to protect ONGC in the event that oil prices fall sharply. Sakhalin 1 has been predicted to begin production in 2005, generating 8 million tons of oil and 9.5 billion cubic meters of natural gas a year.

India is also one of Russia's biggest debtors, owing some $10 billion, mostly for earlier warplanes and other arms supplies. In 1992, an agreement was signed requiring India to repay the loans in rupees over 12 years, $1 billion of which would be used each year to buy Indian goods. But Russia has never managed to purchase $1 billion worth of goods each year. Now moves toward switching from rupees to hard currency are seen as instrumental in encouraging trade between the two nations.

Adding to official pronouncements of bilateral harmony, on Wednesday, Vajpayee told the Russian Academy of Science "there are no contradictions between New Delhi and Moscow".

Incidentally, Vajpayee's trip to Moscow coincided with controversy over Moscow's only Hare Krishna temple, which is now set to be demolished. The old building, which served as a temple for some 30,000 Hindus and Hare Krishna devotees in Moscow, is due to be replaced by a luxury real estate development.

Hare Krishna followers and traditional Hindus have voiced concern about the future of their communities if a new center is not found. In April, Moscow City Hall promised to provide an alternative site for the construction of a Vedic cultural center, including a place of worship for Krishna adepts. The new center, a 52 meter high building of 10,000 square meters, is set to become one of the largest Hindu temples outside India. However, the plan has been criticized by some Russians, apparently unhappy with an idea to have a major Hindu temple in downtown Moscow.

On Thursday, Vajpayee was due to head for Dushanbe, the capital of Tajikistan, on the second leg of a week-long three-nation tour that also includes Syria. Vajpayee's visit to Dushanbe is seen as highlighting India's efforts to increase engagement in Central Asia.

In yet another sign of greater engagement, earlier this month Indian Defense Minister George Fernandes traveled to Kyrgyzstan and Kazakhstan. He reportedly pledged to help Kyrgyzstan combat Islamic terrorism, stating that "both our countries face identical threats".

Delhi co-sponsored a major gathering, an India-Central Asia three-day regional conference in the Uzbek capital of Tashkent on November 6-8. "For us, Central Asia is our immediate strategic neighborhood," Indian Foreign Minister Yashwant Sinha said in his keynote address during the conference. Sinha also called for greater economic engagement between India and Central Asia.

(Copyright 2003 Asia Times Online Co, Ltd. All rights reserved. Please contact content@atimes.com for information on our sales and syndication policies.)
 
Nov 14, 2003



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