Economic Engagement & Business Opportunities in Russia Post COVID-19

The fact is that relations between our two friendly nations are limitless, and they remain trusted, strong and coherent despite the current global turbulence, while challenges open new opportunities for cooperation.

The year 2020 is indeed remarkable – our strategic partnership crossed the 20th anniversary. Jointly we participated in many international events dedicated to the 75th anniversary of the end of the Second World War and establishment of the United Nations. It is a clear reflection that our positions on global affairs are similar or coinciding – we stand for the central role of the UN and international law, collective approach to the issues of peace and security, unacceptability of unilateral sanctions and economic pressure, promotion of an inclusive and unified agenda.

In this regard, we highly appreciate the visit of Defence Minister Rajnath Singh to Moscow this June to participate in the events dedicated to the Victory in the Great Patriotic War (1941-1945) and to lead the Indian Armed Forces 3-services contingent for the Red Square parade.

Our countries promote just and equal multipolar world order with greater role of major developing countries and emerging economies in the global governance. That also includes the consistent Russian support to the permanent membership of India in the UN Security Council. India’s joining this body as a non-permanent member in 2021-2022 will provide new opportunities for international coordination.

Together with India and other partners, we successfully promoted multilateral cooperation in the SCO and BRICS under the Russian chairmanship this year.

Within BRICS, we aim to achieve the goal of a constructive polycentrism. In 2020 we managed to successfully implement a broad programme crowned with the XII Summit under the motto “BRICS Partnership for Global Stability, Shared Security and Innovative Growth”. Among major achievements – adoption of the Counter-Terrorism Strategy and the Economic Partnership Strategy till 2025, expanded activities by the New Development Bank, implementation of the Energy Research Cooperation Platform, progress in our healthcare partnership with the view to establish an early warning system against epidemics.

In the SCO, we welcome the growing Indian involvement and coordination with the Russian Presidency this year and highly appreciate holding of the Heads of Government Council Meeting on November 30, 2020. This is a strong contribution to further consolidation of the SCO, which produced substantive declarations and a solid package of result-oriented documents aimed at the regional stability.

We believe that the RIC format is very promising since along with confidence building in the Eurasian space it is now also targeting practical cooperation.

Creating connections between the regional fora and organizations – Eurasian Economic Union, SCO, ASEAN, etc. – would enhance a constructive cooperation in this vast common space and its evolution to the Great Eurasian Partnership.

The Coronavirus pandemic did not stop interaction between our leaders, foreign ministers and senior officials. For example, since March 2020, President Putin and Prime Minister Modi held four bilateral telephone conversations and jointly participated in a number of videoconferences, including at the BRICS and the SCO Summits under the Russian Chairmanship as well as the G20 Summits.

Positive multilateral dialogue provides for even stronger opportunities for enhanced bilateral interaction and new business opportunities. We are moving towards next high and highest level engagements with even more solid background.

As the world continues to fight the COVID-19 pandemic, our countries keep supporting each other. Now we are moving to joint production of the Sputnik V – first-ever anti-COVID-19 vaccine. The Russian Direct Investment Fund together with Dr Reddy’s Laboratories are engaged in clinical trials of this vaccine in India. Russia registered the second vaccine in October – EpiVacCorona, and the third one is coming soon.

Our ties became an integral part of development strategies of each other. Russia as of now is the only foreign country so deeply involved in the Indian nuclear power sector, contributing to the national energy security. Our flagship project is the Russian-designed Kudankulam Nuclear Power Plant in Tamil Nadu. We intend to share with India our best practices, involving the construction of more nuclear reactors of the Russian design in India and in third countries.

Our unparalleled defence cooperation based on real exchange of modern technologies and joint ventures helps India to advance local production and expand its military export potential. We are working on co-development and co-production of equipment, components and spare parts, improving after-sales service system and deepening localization programmes. In addition to the currently implemented contracts exceeding USD 16 bn, more developments are expected at the Aero-India – 2021 exhibition, where Russia intends to be one of the biggest participants.

The Indian investors show growing engagement in the Russian Far East oil and gas, coking coal, diamonds, innovation, infrastructure and other projects. Together we work to expand regional connectivity, use of national currencies in international trade as well as to launch India – Eurasian Economic Union FTA, and reach USD 30 bn in mutual trade by 2025. More opportunities will be open with the re-establishment of the direct Vladivostok-Chennai sea route and enhancing capacity of the North-South International Transport Corridor.

At the same time, there are numerous promising directions, which are going beyond traditional areas of cooperation.

In finance, such areas as alternative payment systems, information security, insurance and stock exchange markets would certainly support expanding economic partnership. There’re growing advantages to use national currencies in bilateral trade, which require exploring new mechanisms. We should encourage promotion of our inter-banking cooperation – in the current year one of the Russian leading banks (Sberbank) is expecting to receive the permission to open its second office in India. Another branch (VTB) has recently increased its capital in order to facilitate trade and investment operations.

Since our countries focus more on local industries development, including in the framework of Artmanirbhar Bharat initiative, there are growing prospects for joint ventures, especially with regard to products, which are of a great demand. So, we should encourage companies to go for JVs on complicated equipment for power stations and digital solutions for heavy industries, trains and coaches, railway safety complexes, infrastructure maintenance, sunflower oil and other agriculture technologies, waste and water management, artificial intelligence, shipbuilding.

Interregional cooperation is gaining momentum as an important source for enriching our bilateral economic ties. We are looking forward to revive such contacts and come back to the initiative of the 1st Russian-Indian Interregional Forum, which was approved at the high and highest levels. Hope that the Forum would become an annual exercise helping to capitalize a tremendous economic and tourism potential.

It would also be very promising to expand our cooperation in third countries, which is now covering nuclear power and defence initiatives.

So, as we see there is a huge mutual interest to explore more business opportunities. Let’s work together to use ideas which are discussed today to offer them to our Leaders and Ministers as well as to all who is intending to do practical job not waiting for a high approval!