KOLKATA (miningweekly.com) – The forthcoming yearly Indo-Russia Summit, in October, is expected to lay down the framework for scaling up bilateral engagements in the mining, energy and hydrocarbon sectors, wherein mega marquee investments have already been put on the anvil.
While the bilateral agreements up for discussion and, likely, joint declarations, are under preparation, back channel diplomatic talks have already decided to focus on increasing India-Russia bilateral trade to about $30-billion a year over the next ten years, up from $10-billion, largely riding on minerals and hydrocarbon investments and trade, an official said.
It was pointed out that the preponderance of recent investment proposals between the two countries was such that the Indo-Russian Summit was brought forward to October, even though the yearly event had been scheduled for December.
The official added that, with Russian President Vladimir Putin already in Goa in October to attend a meeting of the Brazil, Russia, India, China and South Africa bloc of nations, holding the Indo-Russia Summit straight thereafter was only logical.
Officials of both countries had already met earlier this month to draw up background papers for the summit and to fast-track Indian investments in Russia. Gas, coal, iron-ore and petrochemicals will be high on the agenda for the talks between Putin and Indian Prime Minister Narendra Modi.
India's oil and gas exploration and production (E&P) major, ONGC Limited, has already planned $5-billion of investments in Russia, with media reports quoting India’s Commerce Minister as saying that total Indian investments in Russia’s oil and gas sector could touch $15-billion in the next five years.
Reflecting this, ONGC Videsh, the overseas arm of ONGC Limited, has already submitted an expression of interest in picking up a 49% equity stake in Russian oil producer Rosneft Oil Company’s Tagul field in a deal that has been estimated at $1-billion.
Another Indian E&P company, Oil India Limited, is also in the process of raising funds, estimated at $500-million, to part fund the acquisition of a stake in Rosneft’s oil and gas fields in east Siberia.
At a working group meeting of Russian and Indian officials, the Indian side offered joint development of coal mines in Russia. Officials said that both sides had agreed to exchange information and to identify coal projects suitable for joint development.
It was pointed out that as a fallout of the downturn in commodity prices, the Russian coal sector was facing declining investment, which was estimated to be at a low of $1-billion at present.
Against this backdrop, as any Indian foray into Russian coal is likely to be spearheaded by government-owned and -operated Coal India Limited, bilateral sovereign guarantees worked out at the forthcoming summit will fast-track the coal sector collaborations.