OIL & GAS

Russia pulls India closer with oil and weapons

Russia is bolstering cooperation with India in oil and defense, hoping to use its ties to the key Asian partner to its advantage in its rivalry with Washington.

Russia is bolstering cooperation with India in oil and defense, hoping to use its ties to the key Asian partner to its advantage in its rivalry with Washington.

Indian oil companies will join the $157 billion Vostok Oil development project in the Arctic, Russian state energy major Rosneft said Wednesday. Rosneft CEO Igor Sechin and Dharmendra Pradhan, India’s petroleum minister, agreed in New Delhi to form a working team to iron out the details.

Sechin, an ally of Russian President Vladimir Putin, leads the Arctic project. Vostok could produce 100 million tons of oil yearly by 2030, amounting to nearly 20% of total Russian output. Russia sees India, the world’s largest oil consumer after the U.S. and China, as the biggest potential customer.

Rosneft also signed a contract with Indian Oil to ship as much as 2 million tons of oil to India from the Black Sea port of Novorossiysk by the end of 2020.

The countries are tightening military ties as well. Moscow will deliver the first batch of S-400 missile defense units to India — and train Indian specialists — as planned by the end of the year, an official from Russia’s Federal Service for Military-Technical Cooperation told reporters Wednesday at the DefExpo 2020 in India.

Russia is prepared to start joint production of Kalashnikov rifles in India for that country’s market in 2020, the official said. Moscow also has extended the license for Indian production of Russian tanks until 2028, meaning about 460 more vehicles will be produced in India.

As India expands its military, the South Asian country has pushed arms exporters like the U.S. to let it build more equipment domestically. Russia has accommodated this request, and has received $15 billion worth of orders in the past three years.

Source
Aisa Nikkei
Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Close