The Russian President, Vladimir Putin's visit to India during its fifty-seventh Republic Day celebrations in January 2007 was his first after the signing of Indo-US nuclear deal. During the summit meeting held in New Delhi, the two nations signed nine bilateral agreements and adopted two documents on civilian nuclear cooperation, military hardware and trade expansion. Putin's visit before the implementation of the Indo-US nuclear deal has enormous significance for the deal and for Indo-Russian ties.

India and Russia have been longstanding friends with India being a traditional buyer of Soviet military hardware since the 1950s. India and Russia have also agreed to enhance civilian nuclear energy cooperation for strengthening India's energy security. The two democracies signed a "memorandum of intent" to add four 1000 MW nuclear reactors to the power plant under construction at Koodankulam in Tamil Nadu and to build more nuclear reactors at new sites under International Atomic Energy Agency safeguards. Moscow's commitment to provide uninterrupted supply of low enriched uranium for the Koodankulam nuclear power unit and the additional light water reactors in the Kudankulam Nuclear Power Plant indicates that Russia wants to step up nuclear cooperation with India.

Putin's offer of civilian nuclear power cooperation will bring Russia back into India's strategic calculations. The Russian president in one quick stroke has restored the balance in their relations with his mutually beneficial offer. India's commitment to deepening civilian nuclear energy cooperation with Russia will dispel fears in Moscow that New Delhi's growing proximity with Washington will overshadow Indo-Russian ties.

Russia is a key member of the Nuclear Suppliers' Group and therefore, President Putin's visit to India before the finalization of the 123 Agreement is enormously important. Russia has committed to further India's case in the NSG and supports the Indo-US nuclear deal for ensuring fuel supplies. This will undoubtedly strengthen India's case to the NSG that it relax its non-proliferation guidelines in view of India's unblemished non-proliferation record. With Russia's backing, India can hope to secure the best bargain once it enters into the final round of negotiations on the Indo-US nuclear deal with the US and the IAEA. Putin's offer will provide a strong incentive for the US to hasten the implementation of the deal so that Washington is not deprived of the political advantage with India vis-?-vis Moscow.

Russia's initiative endorses India's nuclear weapons status. In the joint statement, which is identical to the Indo-US joint statement of 18 July 2005, President Putin described India as a state "possessing advanced nuclear technologies." However, a significant point of difference is that the Indo-Russian agreement will facilitate the reprocessing of nuclear fuel by India for atomic power plants built with Russian assistance. India will not have any constraints to proceed with a 'closed fuel cycle'. Russia is willing to accept India's desires to reprocess spent fuel and maintain fuel reserves within the country. This is in sharp contrast to the Hyde Act that relegates reprocessing of spent fuel to conditions "commensurate with reactor operating requirements."

Russia's eagerness for expanded nuclear cooperation before the completion of the Indo-US nuclear deliberations indicates Moscow's endorsement of India's nuclear weapon status. Putin's nuclear cooperation offer also reiterates India's position as a responsible nuclear weapons power in the international community that can play a substantial role in promoting the peaceful application of nuclear energy and in combating proliferation of nuclear weapons.

Putin's visit also indicates that the Indo-US nuclear deal is not just a bilateral issue. The final implementation of the Hyde Act will free India from the shackles of the three-decade long technology denial regimes and pave the way for India to embark upon nuclear energy cooperation with other nuclear energy suppliers like France. This will also open vast investment opportunities for them. Putin is aware of the prospective US$100 billion nuclear power plants investments likely to be made by India.

The world today is characterized by both cooperation and competition. While it is important to cooperate with the US for nuclear energy assistance, competition between the US and other "major balancers" will also be highly advantageous for India. Hence, India and Russia must seize the opportunity to promote a strong partnership and enhance the peaceful use of nuclear energy.