The cordiality that marked India-Russia relations for many decades is declining. This was evident during Russian President, Vladimir Putin's, visit to India on 3-5 December 2004. Russo-philes might argue that the present pragmatic phase must be viewed against the backdrop of liberalization, privatization and globalization (LPG). Putin's three visits to India in four years since 2000 and Russian reiteration of its "traditional all-weather strategic partnership" with India only prove the existence of special relations.

However, it is difficult to accept these arguments without question.

Russian Front

The Russian top priority was to sign an Intellectual Property Rights agreement with India to protect its defence and high-technology information transfer. New Delhi has inked a similar agreement with Washington, but not with Moscow. In the absence of such an agreement, there are chances for re-export of Russian defence equipments to third countries by India. Putin insisted that a draft agreement be finalized in January 2005 and a final agreement thereafter in a few months. Moscow is also upset that India, while insisting on no Russia-Pakistan defence deals, buys spares from countries that supply defence equipment to Pakistan.

The second Russian priority was to make India accept Russia as a market economy in any future anti-dumping investigations. India has been delaying such recognition despite an assurance in the joint statement issued after Putin's earlier visit in 2002. Russia is a market economy in fact and its businesspersons are guiding Moscow's foreign economic policy. Two thirds of its adult population works in the private sector and its GDP is growing at an impressive seven percent annually. India has now agreed to recognize Russia as a market economy.

Indian Front

For its part, New Delhi has been asking for bank guarantees against items ordered from Russian military industrial complex, as Russian companies have failed to meet their delivery schedules. This demand was partly conceded by Russia agreeing to give a 'comfort letter' from the Russian Ministry of Finance. Bilateral trade is another Indian concern which remains "shamefully low". For instance, Indian tea exports that dominated Russian market has yielded place to Sri Lankan tea. Bilateral annual trade is stuck around $1.4 bn. A joint commission has been tasked to look into the related issues with a new sense of urgency. Thirdly, Russia has expressed its inability to provide low enriched uranium to the Tarapur nuclear power plant and two more reactors for Koodankulam Nuclear Power Project citing "NSG commitments". Pragmatism does not allow Russia to ignore its Nuclear Suppliers Group (NSG) obligations, reflecting its acceptance of stark global realities.

Common Front

What the two countries need to do at this juncture is resolve the irritants present and move ahead on areas of their identified convergences. Energy security gains prominence here. Russia is energy surplus, but India is energy starved. Both countries have agreed "to encourage and assist investments in the energy sector." Further, their agreement to cooperate "in the development of new oil and gas fields and the means of their transportation in Russia, India and other countries" is promising. Tourism is another potential area. Very few of the eight million Russians and six million Indians, who go overseas every year, visited each other's countries. Tapping each other's potential in information technology is another promising area. Indian cooperation was sought for setting up IT parks in Russia. Indian expertise would be useful in areas like research and development on supercomputers. Russian expertise in information security could be tapped by India. Other areas identified for cooperation were electronics, biotechnology, space and pharmaceuticals.

Areas of convergences are huge. Both countries are victims of terrorism. They have a common understanding that there can no "double standards" in this regard. Proliferation of WMDs, especially into the hands of terrorists, is a matter of common concern. They want a central role for the United Nations to address this issue. But, Russia has to clarify the ambiguity in its support for India's candidature to the UN Security Council. There is also a convergence in both countries favouring a multi-polar, democratic world order. Defence cooperation, another important pillar of India-Russia relations, has now progressed beyond buyer-seller relationship to joint R&D, joint-ventures and joint production. The decision to jointly develop an air-launched version of BrahMos supersonic cruise missile in a two-year time-frame is a portent of future cooperation.