Russia-India economic relations and deals

An Indian consortium led by Oil India is in talks with Rosneft to acquire a 49% stake in Vankor Cluster assets. The Vankor Cluster comprises the Suzunskoye, Tagulskoye and Lodochnoye oilfields. All the fields have gas reserves of approximately 415 million tons. The deal is expected to be worth more than USD 2 billion. Sources say that deal will include some under-developed fields as well.

Read more: https://sputniknews.com/business/201610131046295545-india-vankor-oil/

NEW DELHI: In what could help ease the heartburn caused by the Russia-Pakistan military exercise, India is making a major Russia push by lining up as many as 30 collaboration proposals to be taken up at the Indo-Russian annual summit in Goa on Saturday. These projects will cover areas ranging from additional nuclear reactors and fifthgeneration fighter aircraft to satellite navigation and investment in the hydrocarbon sector.

Russian President Vladimir Putin will be in India from October 14 to 17, his longest stay here in recent times, to attend the 17th edition of the Indo-Russian summit and the 8th BRICS summit with a team that includes eight ministers.

Putin and Prime Minister Narendra Modi will release a joint document on global peace and stability besides a separate paper listing three dozen activities planned in 2017 to mark the 70th year of the establishment of diplomatic relations between the two countries.

The Goa meeting, said people familiar with Indo-Russian partnership, could lead to significant outcomes and big headlines.

Notwithstanding Russian argument of having minimum engagement with Pakistan to fight terror in the Eurasian region, Modi will express concern when he meets Putin over the military exercise in Cherat as India seeks to build a narrative against Pak-sponsored terror.

Delhi and Moscow will seek to expand their counter-terror partnership and sign cyber security pact in Goa, officials said. Both sides are also hoping to extend their collaboration in Afghanistan with Delhi seeking Moscow’s assistance to supply military equipment.

Despite going ahead with the war games with Pakistan, Moscow has taken steps to back India’s position — it supported the surgical strikes on terrorists in Pakistan Occupied Kashmir, cancelled joint exercises in Azad Kashmir and earlier virtually blamed Pakistan for the Uri terror attack.

Even as negotiations are still going on, the highlight of this edition of the Indo-Russian summit could be an agreement on the fifth and sixth reactors (1,000 MW each) for the Kudankulam Nuclear Power Project in Tamil Nadu. India is expected to announce a second site for Russian-built nuclear power plants comprising six reactors, likely in Andhra Pradesh, even as Russia plans to sell as many as 25 reactors to India. Some reports suggest that Modi and Putin could jointly dedicate the second unit at Kudankulam through videoconferencing from Goa.

India views Russia as a hard power which could assist it in key strategic sectors. Besides nuclear energy, a number of defencerelated pacts are in the pipeline as Moscow hopes to continue as India’s preeminent defence supplier.


Besides agreements for fifth-generation fighter jets and Kamov helicopters (to be produced in India), the two sides could agree to modify the jointly developed Brahmos supersonic missiles, besides building frigates for the Indian Navy and supply an air defence system. Russia will also be urged to continue supply of ammunition for the Indian Army.

Read more at:
http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst

India’s second biggest private refiner could soon come under the control of Russian energy firm Rosneft. The US was not in favor of the deal citing sanctions against Russian firm.

New Delhi (Sputnik) — Roadblocks have been cleared for one of the biggest investments of any Russian firm in India — the Rosneft-Essar oil deal. The deal is estimated to be worth $12 billion.



Sources indicate that Russian companies and Essar Oil are expected to announce the acquisition after the India-Russia Annual Summit in Goa. According to the agreement, Rosneft will acquire 49 percent stake in Essar Oil, while, Dutch commodities trading partner Trafigura and Russian fund United Capital Partner will share another 49 percent equally between them.

Narendra Taneja, an Indian energy expert, says, “This would be a big foreign investment in India and definitely would bring Russia and India closer economically.”

Pumped Up! India Gets Ready for Arrival of BP and Rosneft to the High Street This would be a landmark deal for future economic cooperation between the two ‘unique time-tested friends’ — India and Russia — even as the US threatened to derail the deal citing a two-year-old sanction it had imposed on Rosneft. However, sensing the US sanction might come in the way of deal, Essar had reduced the share intended for sale by 25%.

It is not clear whether the Indian government had intervened in the matter to push the deal as early as possible. The expert does not mention diplomatic intervention, but Taneja is confident that ‘the deal should cross the sanctions hurdles successfully.’

“With this deal, Rosneft would secure demand for its crude oil. The deal would open up India's petrol, diesel, air turbine fuel and other petroleum products market for Roseneft. This means a lot for the Russian company since India is the fastest growing oil market in the world," Taneja said.

Rosneft is expected to enter the Indian retail market with 2,000 retail outlets currently owned by Essar.

Read more: https://sputniknews.com/business/201610141046336057-india-russia-rosneft-deal/

India and Russia are looking into ways to improve transport links between the two countries in order to boost trade and economic cooperation, Indian Ambassador to Russia Pankaj Saran said Friday.

GOA (Sputnik) — Ahead of the upcoming BRICS summit in Goa, Saran told reporters:

"We are also looking at the importance of improving connectivity between India and Russia because this has proved to be obstacle in the growth of our trade and economic partnership."

he BRICS Business Council will also meet on the sidelines of the summit of the five-nation BRICS, which will take place on Saturday and Sunday and will be visited by the Russian president. The council will discuss ways to spur intra-BRICS economic cooperation.

Russia and India are looking for new ways to cooperate in the energy, infrastructure, rail, agriculture and high-tech sectors, the ambassador added. "I would say that today, the India of today and the Russia of today are more ambitious than they have ever been in the past about finding new areas and moving forward," Saran said.

The BRICS Business Council is a platform which serves to promote business, trade and investment ties between the BRICS member states. It was established in 2013 during the Fifth BRICS Summit in South Africa.

BRICS is an association of five economies, which comprise over one third of the world’s population. BRICS member states, China, Russia, Brazil, India and South Africa, have a combined nominal GDP equivalent to approximately 20 percent of the gross world product.

Read more: https://sputniknews.com/business/201610141046338853-india-russia-trade-cooperation/

Russia's state-controlled oil giant Rosneft+ and its partners on Saturday took over India's second biggest private oil firm Essar Oil+ in an all-cash deal valued at about $13 billion.

Rosneft bought a 49 per cent stake in Essar Oil+ 's refinery port and petrol pumps, while Netherlands-based Trafigura Group Pte, one of the world's biggest commodity trading companies, and Russian investment fund United Capital Partners split another 49 per cent equity equally.

The remaining 2 per cent is held by minority shareholders after delisting of Essar Oil.

The deal has an enterprise value of close to $13 billion+ , which includes Essar Oil's debt of $4.5 billion and about $2 billion debt with the port company and power plant. Also, the near $3 billion dues to Iran for past oil purchases will continue to be on Essar Oil books.

Essar Oil, part of a steel-to-ports conglomerate controlled by the billionaire Ruia brothers, operates a 405,000-barrels-a-day refinery at Vadinar in Gujarat. The refining complex also has a captive power plant as well as a port and terminal facilities.

Essar Oil said it has signed two agreements for the sale.

"The first sale and purchase agreement envisages the sale of 49% to Petrol Complex Pte Ltd (a subsidiary of PJSC Rosneft Oil Company); the second envisages the sale of the remaining 49 per cent to Kesani Enterprises Company Limited (owned by a consortium led by Trafigura and United Capital Partners) at an enterprise valuation of Rs 72,800 crore ($10.9 billion).

"An additional Rs 13,300 crore ($2 billion) will be paid for the acquisition of Vadinar Port, which has world-class storage and import/export facilities," it said
The deal would help the Essar Group, one of India's largest and most indebted conglomerates, trim its about Rs 88,000 crore (over $13 billion) debt and ward off creditor pressure.

The deal was announced as Indian Prime Minister Narendra Modi met Russian President Vladimir Putin during a meeting of the leaders of the BRICS countries here.

The deal is the single largest foreign investment in the Indian refining sector and will strengthen the ties between the world's largest oil producer and the world's fastest growing fuel consumer.

The acquisition is the biggest foreign acquisition ever in India and Russia's largest outbound deal.

The all cash deal is expected to close in first quarter of 2017


http://timesofindia.indiatimes.com/business/india-business/Rosneft-led-group-acquires-Essar-Oil-for-nearly-13-billion/articleshow/54866343.cms

http://in.reuters.com/article/india-russia-brics-deals-idINKBN12F0EG

By Douglas Busvine and Denis Pinchuk | GOA, INDIA

India and Russia signed billions of dollars of defence and energy deals on Saturday at a summit that sought to inject new life into a relationship that has been tested by shifting global alliances and conflict in the Middle East.

Under the biggest agreement, a group led by Russian state oil major Rosneft said it would pay $12.9 billion for a controlling stake in both India's Essar Oil and port facilities that it owns.

The countries, which had strong ties during the Cold War, announced plans for a joint venture to build helicopters in India. New Delhi said it would also buy surface-to-air missile systems and stealth frigates from Moscow.

"Ours is a truly unique and privileged relationship," Indian Prime Minister Narendra Modi said after talks with Russian President Vladimir Putin in the western seaside state of Goa.

Modi said that his views were aligned with Putin's on the unstable situation in Afghanistan and the Middle East, where Moscow is at odds with the West in the five-year-old civil war in Syria that has killed hundreds of thousands.

"We are conducting a comprehensive dialog on a wide scale of international issues, in which Indian and Russian approaches are close to each other or coincide," said Putin.

Modi also praised Putin's support for the fight against international terrorism, which India accuses its neighbour and rival Pakistan of sponsoring. "Russia's clear stand on the need to combat terrorism mirrors our own," Modi said.

MULTIPLE DEALS

The Rosneft-Essar deal will be the biggest foreign takeover in India, and Russia's largest outbound deal, according to Thomson Reuters data.

It comes as Russia moves to reassert its role in global affairs and at a time when its own economy is stagnant, hit by Western sanctions and low oil prices.

Under the deal, a group led by Rosneft will acquire 98 percent of Essar Oil, and with it a 400,000 barrels-per-day refinery and port at Vadinar for $12.9 billion, the two sides said.

Russian state bank VTB said it would refinance $3.9 billion owed by the Essar Group. Rosneft would pay $3.5 billion and its partners, oil trader Trafigura and investment fund UCP the same amount for an equal joint stake.

The refinery deal follows a string of upstream investments in Russia by Indian companies in recent months that, Modi said, were worth $5.5 billion.

Also on display was Russia's nuclear prowess, with the second reactor of the Russian-built Kudankulam plant in Tamil Nadu hooked up to the grid and concrete being poured in a ceremony carried by a TV linkup to mark the start of work on the third and fourth reactors there.

Putin said that Russia would be able to build a dozen nuclear reactors in India over the next 20 years to back Modi's growth strategy for Asia's third-largest economy, which continues to suffer chronic power shortages.

HELICOPTERS, MISSILES, SHIPS

The defence pacts will also deepen military ties between the two countries that dates back to the Soviet era, when India entirely depended on Moscow to equip its armed forces. The United States has since taken over as India's top arms supplier.

Indian military officials have said the plan is for the joint venture to build at least 200 Kamov 226t helicopters required by the country's defence forces. Hindustan Aeronautics Ltd will be the local partner of Russian Helicopters and state arms exporter Rosoboronexport.

The S-400 surface-to-air missiles would strengthen India's defences along its borders with China and Pakistan, Indian military officials have said. Also agreed were plans to build and supply stealth frigates for the Indian navy.

Russia's Deputy Prime Minister Dmitry Rogozin, who is in charge of space and military industries, said two frigates could be built in India and two in Russia, RIA news agency reported. Rogozin said the ships may later be equipped with missiles manufacturered by BrahMos Aerospace, a venture co-owned by the Indian and Russian governments.

(Additional reporting by Rupam Jain and Sanjeev Miglani; Writing by Douglas Busvine and Euan Rocha)

BENAULIM, GOA: India and Russia have agreed to explore building the world's most expensive pipeline costing close to USD 25 billion to ferry natural gas from Siberia to the world's third biggest energy consuming nation.

The pipeline is to connect Russian gas grid to India through a 4,500 km to 6,000 km pipeline, officials said.

The shortest route will entail bringing the pipeline through Himalayas into Northern India, a route which poses several technical challenges.

Alternately, the pipeline can come via Central Asian nations, Iran and Pakistan into Western India. However, the route will be expensive when compared to the long discussed but shorter and cheaper Iran-Pakistan-India pipeline. Tehran may suggest India take its gas through IPI rather than building such an expensive pipeline, they said.

The third and the longest alternative is to lay a pipeline through China and Myanmar into North East India bypassing Bangladesh.

According to preliminary cost estimate prepared by state-owned Engineers India Ltd, which yesterday signed an agreement with Russian gas monopoly Gazprom for studying the Russia-India pipeline, the longest route of 6,000 km may cost close to USD 25 billion.

The cost of transporting gas may be USD 12 per million British thermal unit, according to EIL.


The MoU signed in the presence of Prime Minister Narendra Modi and Russian President Vladimir Putin at the India-Russia Annual Summit on sidelines of the 8th BRICS Summit in Goa, also envisages roping in ONGC Videsh Ltd, gas utility GAIL India Ltd and Petronet LNG Ltd for the study.

Sources said natural gas produced in East Siberian fields is to be pumped into Russian gas grid which would be connected to India through the cross-country pipeline network.

While the cost of transporting gas via the long discussed IPI pipeline is less than USD 1 per mmBtu, the same for the Turkeministan-Afghanistan-Pakistan-India (TAPI) pipeline is around USD 2 per mmBtu.

According to industry experts, a realistic transportation cost would be USD 4 per mmBtu for the Russia-India gas pipeline. This excludes the transit fee to be paid to nations through which the pipeline will pass.

Russia is seeking to expand energy ties in Asia amid tensions with the West sparked by Moscow's annexation of Crimea in 2014.

Indian companies have snapped up stakes in production assets in Siberian fields.

The MoU is being seen as an attempt to strengthen ties between the world's largest oil producer and the world's fastest growing fuel consumer.


http://www.ndtv.com/india-news/india-russia-to-study-building-worlds-most-expensive-pipeline-1474909

NEW DELHI: Besides signing agreements on major defence deals at the India-Russia Annual Summit, which will strategically strengthen India’s military capabilities, India and Russia also agreed on improving the Brahmos supersonic cruise missile and the Fifth Generation Fighter Aircraft (FGFA).

Russian President Vladimir Putin while speaking to the Russian media following the BRICS summit said, "We have also agreed to improve the Brahmos missile, which will be land, air and sea-launched. We will also work to increase its range," said Putin.

He also said, "And we will work together on a fifth-generation aircraft. It has basically made its maiden flight, but there are some issues we need to work out. I am talking about the T-50 fighter plane."

The FGFA is being developed by India and Russia. It is derived from the Russian Air Force Sukhoi PAK FA. The T-50 is the prototype.


He added, "Our relations in this area can be described by our willingness to help our Indian friends acquire additional competences. We have organised the assembly and production of the latest T-90 tanks and Sukhoi Su-30 aircraft."

At the summit held in Goa over the weekend, India and Russia signed agreements on building frigates in Russia and India, of Russia delivering the S-400 Triumf air defence systems and a joint Kamov Ka-226T helicopter manufacturing enterprise, a Make in India project.

The S-400 Triumf contract is worth billions of dollars, according to Putin’s statement to the Russian media.

"As for military technical cooperation, the quality of that cooperation is quite high, maybe even better than with many other countries. We do not just sell India high-tech modern weaponry, but we also have joint research projects," he said.

Putin also said India is one of Russia’s priority and strategic partners. "I should not need to recall the time of the popular Hindi Rusi bhai-bhai slogan (Indians and Russians are brothers). In fact, little has changed since then, and our relations have grown stronger," he said.

Read more at:
http://economictimes.indiatimes.com/articleshow/54918510.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Niggling issues apart, Russia most trustworthy

Fresh moves to tighten the India-Russia partnership indicate both nations’ resolve to work closely despite Moscow's occasional overtures to Pakistan. Russia's growing proximity to Beijing in recent years has created discomfort for Delhi. But being a traditional friend for decades, Russia's concern for India has always been strong. Pakistan's constant efforts to bring Russia and China together in its power corridor will not cause damage to India, as the latter figures prominently in the economic and strategic calculus of both these nations. On the sidelines of the ongoing Brazil, Russia, India, China and South Africa (Brics) summit in Goa, India and Russia signed a slew of defence, energy, power, ship-building and space deals towards strengthening the bilateral ties.

The defence pacts that both the countries signed speak volumes since they come when India is at a crucial juncture of its fight against terror emerging from Pakistani soil. The four primary defence deals signed include: Developing a new version of the BrahMos missile, delivering Russia's most anti-missile defence systems called S-400 Triumpf, work-share agreement to make fifth generation fighter planes (FGFP) or perspective multi-role aircraft and finally, the production of Ka226T helicopters in India. The BrahMos deal will give India a miniature of the earlier ones already available in the country. This version will help India to reach out to the terror camps within a range of 300 kilometres. More importantly, it will have access to land, air and water. This will probably give a new dimension to India's counter-terror efforts. The S-400 Triumpf, which is Russia's most advanced air defence system, will help India restrict our hostile neighbours to operate within their air spaces.

The agreement pertaining to the FGFP will enable India to get access to Russian technology for producing 100 such aircraft in India. Russia-based Rostec State Corporation is expected to set up joint production facilities in India for the Ka226T helicopters. Both the nations agreed to hold an annual military industrial conference which will allow stakeholders on both sides to institute and push for possible collaborations and will open up numerous fresh opportunities. The key defence deals signed between India and Russia once again buttress the enhanced bilateral cooperation. They highlight the important role Russia plays in India's defence research, development and cooperation. Russian President Vladimir Putin called India a “privileged strategic partner”. This is indeed true, regardless of India's growing proximity to America.

Simultaneously, the growing bilateral cooperation in the field of energy means a lot for Indian public sector companies such as the Oil and Natural Gas Commission and the Indian Oil Corporation, which are already operating on a large scale in Russia. Besides, energy cooperation is something India is looking to tap on a large scale. Recognising the continued importance of Russia in our economic and strategic future, Prime Minister Narendra Modi referred to that country as “an old friend”, being “better than two new friends”. Both India and Russia, despite hiccups, are committed to sustaining the strong bonds they have shared over the decades — and this is just as well.

http://www.dailypioneer.com/columnists/edit/indias-friend-for-ever.html

It is a good aircraft that can be offered up for joint production, Rogozin said.

The Ilyushin Il-114-300 project in the future can become a basis for setting up a Russian-Indian joint venture, Russian Deputy Prime Minister Dmitry Rogozin said at a meeting on aviation development. According to him, a pertinent presentation has already been prepared by the Ilyushin Design Bureau and forwarded to India.

"We believe it is a good aircraft that can be offered up for joint production. At least, we will begin with assembling the aircraft on Indian territory, paving the way for its joint production in India and other countries," he said.

At the same time, Rogozin stressed that in the beginning the project’s full-scale production should be set up in Russia. He said that upon the president’s instructions the work was being wrapped up and "soon a document will be put forward, containing a synchronized schedule on the purchase of aircraft for our air companies, and the production capacities as well."

"We won’t encourage air companies to use foreign-made aircraft any more, if this sort of aircraft can be produced in Russia," Rogozin stated. "This is a tough restriction that we employ in order to protect our domestic market. We are a great aviation power and we should be ashamed of buying foreign aircraft for popular routes."

He also said that the Ilyushin Il-114-300 aircraft should be of high-quality, "its flying characteristics and image should ensure its high demand domestically and even abroad," Rogozin added. The production of the plane is scheduled to start in 2019.

First published by TASS.

https://in.rbth.com/news/2016/10/18/russia-and-india-may-set-up-joint-production-of-il-114-300-plane_639915

Russia is eying the multi-billion dollar deal for P75-I project of India under which six conventional submarines are to be built with Air Independent Propulsion systems.

With deals over USD 12 billion in kitty this month, including leasing of a second nuclear submarine, Russia hopes to bag more projects as it termed itself as not just a business partner but an “ally” who stood by India in its “darkest hours”. Russia is eying the multi-billion dollar deal for P75-I project of India under which six conventional submarines are to be built with Air Independent Propulsion systems and the next aircraft carrier project besides the deal to jointly develop a fifth generation fighter aircraft.

Asserting that there is no limit to what India and Russia can do together, a top Russian defense official claimed the US and Europeans can never give what Moscow can and has offered. “We are ready not just to deliver most serious weapons, most important weapons but continue to give our state of art technology,” Sergei Chemezov, CEO of Rostec State Corporation, an umbrella organisation of 700 hi-tech civilian and military firms, told PTI.

Watch| PM Modi, Prez Putin hold restricted talks ahead of BRICS

“Russia is a friend, an ally and not a business partner. Russia stood by India during its darkest hours. Next year will mark 70 years of our relationship. It is a long time,” he said and noted that Russia had stood by India when it faced sanctions after the 1998 nuclear tests.

“Not so in the recent past, when India was under sanctions, we were pretty much the only partner for India. “Russia has been a partner not only in every day military supplies but also most sensitive and most important supplies including a nuclear submarine which was rented to India for you to use,” said Chemezov who is also a close aide of Russian President Vladmir Putin.

“Come to think about it, I would not imagine any other country to do that, he said. Not in the past or in the future. I cannot imagine US or Europe giving India such a strategic asset,” he said when asked about the tough competition that US and Europe are giving to Russia in the Indian defence market. Not only did Russia lease out a nuclear powered submarine, it actively helped in the building India’s first indigenous nuclear weapon carrying capable submarine INS Arihant which has been inducted into the Indian Navy.

Chemezov said “it is a very special year for us and will be marked by major projects and things are starting already.” He, however, admitted that from a third person’s point of view, there might have been some decline in some areas of defense between the two countries. US and some European countries have managed to strike mega deals with India which the Russians were also competing for.

“It is not a linear sort of relationship. We feel that ties are definitely developing and increasing,” he said. Giving example of the deadly BrahMos missile, Chemezov said that not only has Russia delivered high value equipment but has also collaborated with India on developing strategic assets.

He pointed out that in late 1990s, Russia had transferred technology for Su30 MKI, India’s frontline fighter aircraft. “At that point of time, it was our most modern equipment, our most modern plane. When we had actually signed that agreement, Russia did not even equip its army with this.

“This was basically our newest highest technology. That shows and speaks about our relationship with India,” he said. He also gave the example of T90 tanks, saying they are “not in anyway less but in many way, modern than any advanced US or European technologies”. He said there is scope for cooperation in the P75-I and the aircraft carrier project.

“There is definitely scope for both of those. There is pretty much no limit to what we could do together. Anything that is within our realm of things and possibilities, means it is the same with India,” he said.

Chemezov said that Russia has already submitted its proposals for both projects.


http://indianexpress.com/article/in...ood-by-india-in-darkest-hours-russia-3098918/

HIGHLIGHTS

* Saudi state energy firm Aramco had also bid for Indian refiner Essar.

* Rosneft-Essar deal was salvaged due to involvement of Putin and Modi
.
* The tussle for Essar shows growing battle for oil markets between Russia and Saudi Arabia.

LONDON/NEW DELHI/MOSCOW: A multi-billion-dollar Russian deal to buy Indian refiner Essar was nearly sunk at the eleventh hour by a rival bid from Saudi Arabia as the two oil superpowers vie for supremacy across the world.


The deal between Essar and a consortium led by Kremlin oil giant Rosneft appeared dead in the water two months ago after Saudi state energy firm Aramco weighed in, according to seven Russia, India and Saudi-based industry sources familiar with or involved in the negotiations.


It was salvaged due to the involvement of Russian President Vladimir Putin and Indian Prime Minister Narendra Modi, who were keen for it go through, and after the consortium agreed to pay $13 billion — more than double what Rosneft had initially valued Essar at, sources told Reuters.


This made the refiner the biggest—ever foreign acquisition in India and Russia's largest outbound deal.
The tussle for Essar — a state—of—the—art plant in the world's fastest—growing fuel market — illustrates the growing battle for oil markets between Russia and Saudi Arabia, the world's two largest crude exporters.


It also sheds light on the challenges OPEC member Saudi Arabia and non—OPEC Russia — which are also fighting a proxy conflict in Syria's civil war — will face in trying to clinch a global agreement to limit output growth to prop up oil prices.


The full details of how the Essar deal was struck remain unclear. Two industry sources said it was rescued thanks to the involvement of Putin and Modi while three other sources said Rosneft had simply outbid Saudi Aramco.


Officials in Modi's office declined to comment while Putin's spokesman Dmitry Peskov denied there was any Kremlin intervention in the deal.


"Naturally, we defend the interests of our companies. Of course we lobby for them, especially on such large deals," said Peskov, but added that in the case of Essar "there were no orders from the Kremlin".


"It was a corporate decision by Rosneft to gain synergies via cooperation with India," he said.

Rosneft and Saudi Aramco declined to comment.

Essar said it had held discussions with several potential buyers but had gone with the Rosneft consortium because their offer was considered the most attractive. It denied there was any intervention from Putin or Modi.


Showdown


Rosneft boss Igor Sechin is keen to buy refining assets around the world to guarantee outlets for Russian oil. He had been negotiating since 2014 to buy 49 percent of Essar from its owners, Indian brothers Ravi and Shashi Ruia, and the two parties had been in exclusive talks since July 2015 when a preliminary deal was signed.
While the exact amount Rosneft was prepared to offer for the stake at that stage is unclear, Russian and Indian industry sources said it valued the whole of Essar at about $5.7 billion.


However it became apparent that there were problems with the deal in early September, when Sechin travelled to India to meet the Ruia brothers, flying from Hangzhou, China, where he had been part of Putin's G20 summit delegation.


Sechin walked into the meeting with the Ruia brothers soon after landing in India at 1am, determined to close the deal, according to sources briefed on the discussions.

As the meeting started, one of the brothers told Sechin the deal process had been going on for too long, the exclusivity period had expired in July and Essar was now talking to other parties.
Those other parties included Saudi Aramco, he said.

According to the sources familiar with how the meeting unfolded, Sechin responded by saying that if Essar walked away from the deal it risked losing Russian financial and oil—supply support.
The Ruia brothers then said the talks with Rosneft were over and called an abrupt end to the meeting.

"People started leaving the room, embarrassed," one of the sources said. Another source said the Essar management had drafted a statement to say the deal with Rosneft was off.

Rosneft and Essar declined to comment on what transpired at the meeting, or on whether such a statement had existed. Sechin and the Ruia brothers could not be reached for comment.

Three Saudi—based sources familiar with details of talks between Essar and Saudi Aramco said the firm was seriously considering buying Essar. One of the sources said Aramco was prepared to pay up to $9 billion for all or most of the refiner.
Aramco declined to comment on whether it had made a bid.
Too big to fail

In the end, however, the Rosneft—Essar deal proved to be too big to fail.

For India, a deal collapse or a delay because of talks with another party would set back Modi's drive to clean up India's $140 billion mountain of bad debt given Essar's multi—billion—dollar debts to local and foreign banks after years of rapid expansion.

For Russia, the deal in the huge Indian market represented an important milestone in building a global oil empire despite Western sanctions imposed on Russia over its actions in Ukraine.

Facing the Saudi competition, Rosneft formed a consortium that bought 98 per cent of the refiner plus a fuel terminal for $13 billion. The Kremlin oil firm bought 49 percent — below the 50 percent level that would have fallen foul of Western sanctions — with Swiss trading house Trafigura and Russian private investment group UCP buying the other 49 percent.

According to the Indian and Russian industry sources, Rosneft and Essar returned to the negotiating table within days of the spat in early September, and the deal was finally struck.

One of the sources said there was a fierce battle between Essar and Rosneft over the terms. They said the Russian—led consortium was forced to outbid the Saudi offer, which they said comprised a
combination of cash, long—term low interest credit and oil supplies.
Trafigura declined to comment on how the deal came together, while UCP did not reply to a written request asking for comment. Washington said the deal did not violate sanctions.

The deal was signed in Mauritius on October 14, a day before a formal announcement on the sidelines of a BRICS summit in Goa where Putin and Modi met. The leaders also oversaw the signing of a raft of other transactions including India agreeing to pay $5 billion for Russian long—range air defence missile systems.

Two industry sources said the Essar deal had first been discussed by Putin and Modi as far back as May 2014 on the sidelines of the St. Petersburg Economic Forum, Russia's main investor show.

It was unclear what form — if any — high—level government intervention might have taken after the September dispute.

But the two sources said that without political will in Moscow and New Delhi, an agreement could not have been struck.

"Putin and Modi saved that deal," said one.

http://timesofindia.indiatimes.com/business/international-business/Saudi-Arabia-vs-Russia-How-Rosnefts-13-billion-Essar-deal-almost-fell-apart/articleshow/55449879.cms

India and Russia chose most feasible site for building new nuclear power plant

More:
http://tass.com/economy/914745

http://in.rbth.com/economics/defence/2016/12/02/can-moscow-retain-the-indian-arms-market_652979

2 December 2016 LEONID NERSISYAN, FORBES.RU

Russia, for many years, has occupied second place, after the United States, in sales of weaponry in the global arms market. India has played a major role in this, being Russia’s biggest arms export market. What does the future look like for these two countries in the sphere of defence cooperation?

Make in India: Russia always ready to share its technologies

A major reason for the success of Russian arms in India was that Moscow has always been willing to work on the ‘Make in India’ or localised production concept, which New Delhi has been promoting for many years.

The Government of India in November approved the signing of a new contract for licensed production of 464 T-90MS tanks – the most modern modification of this combat vehicle.

The contracts for the supply of T-90 tanks to India have allowed Russia to retain a share of around 56% of world tank sales market.

There are several reasons for the success of the T-90, which practically captured the entire Indian market. First, the price: even the newest T-90MS costs markedly less than any of its competitors. The price tag of Western tanks is $6 to 8 million, depending on the model and the configuration. This also happens to be around the same price as the ‘Arjun’ Indian-made tank.

Second, the significantly lower weight of the T-90, compared to Western tanks (because, instead of a place for the fourth crewmember, Russian tanks have an automatic loader), making it lighter and more mobile, which is very important in the Indian landscape.This is why the Indian military has decided not to purchase the Arjun – it weighs a little less than 60 tons (the T-90 weighs 46-48 tons, depending on the version) and has problems with running reliability.

Finally, with the help of Uralvagonzavod, experts in India have managed to build an enterprise to assemble and manufacture some of the components of the T-90. The contract is valued at approximately $2 billion. One T-90MS tank will cost the Indian budget $4.3 million – almost twice the price they paid for the earlier model – the T-90S ($2.5 million). According to the existing contracts (1,657 T-90S tanks) and the new agreement, India will receive a total of 2,121 T-90 tanks in total.


Will the FGFA make Russian aviation industry rich?


Perhaps the most successful deal for the Russian defence industry in India was the sale of the multi-role Su-30MKI – dual-seat upgraded version of the Russian Su-27, designed specifically to meet Indian requirements. Most of these aircraft, as well as the T-90 tanks, are assembled under licence in India. India will pay almost $12 billion for 272 Su-30MKI aircraft. The Indian Air Force is already flying approximately 230 fighters of this type at the moment. The new contract is expected to be completely fulfilled in 2018-2019.

Development of the FGFA (fifth generation fighter aircraft) is the cornerstone for the future of the Russian military aircraft industry in the world arms market. Like the Su-30, this machine is a two-seater – the Indian military prefers this, believing that two crew members can work more effectively than one, especially when performing attack missions. New Delhi plans buy around 200 aircraft of these aircraft in the future.

However, not everything is proceeding smoothly with the FGFA. India signed a contract in 2010 for the preliminary design of the aircraft, worth around $300 million, after which work on the project stalled. The Indian media voiced concerns that this Russian fighter jet, according to the local military, did not correspond to the set technical-tactical characteristics. At various times, complaints were voiced against the AL-41F1 engine (insufficient thrust) and the capabilities of radar technologies to reduce radar visibility of the aircraft.

Delhi rescues Russian ships

The Ukrainian crisis has led to Kiev cancelling all its military-technical cooperation with Russia. The Russian defence industry was able to cope quite quickly when it came to replacement of the majority of products earlier made in Ukraine. One exception was the gas turbine engines for Project 11356 frigates.

The most convenient way out of this situation, was to sell these ships to India, to which New Delhi agreed – because the country had earlier bought similar products from Russia. The frigates of Project 1135.6 ‘Talwar’ are the predecessors of Project 11356, and were developed specifically for India in the early 1990s, with New Delhi buying 6 of these ships.

India has purchased two unfinished ships (they will be finished in Russia), as well as two new ones, which will be built in India within the framework of the ‘Make in India’ programme. Ukraine has agreed to supply the required engines to India. The big plus is also the fact that these ships will be equipped with the BrahMos anti-ship missiles (ASM). These ASM will soon also equip the Su-30MKI fighter jets and, in the future, the FGFA.

A fly in the ointment

These collaborations may appear as though defence cooperation between Russia and India has been smooth sailing and hardly any problems exist for Moscow in this direction. However, this has not been the case for quite a while now. All major arms exporters are actively seeking to break into the tempting Indian market. The USA and France have significantly increased their share in the Indian market, largely due to the weakness of Russian proposals for certain items.

India, for example, held a tender for an MMRCA (Medium multi-role combat aircraft), for the supply of 126 light fighter jets to the country. The Russian MiG-35, which is a much modernized version of the current MiG-29, in fact existed only on paper, so it was not even seriously considered.

Eventually the French won this tender with their ‘Rafale’ fighter jet. However, the Indian government has bought only 36 of these aircraft, as the French arms dealers revised their prices, making them higher than those of the heavy Su-30MKI, and refused to share their production technologies with India.

Thus, the need for a lightweight fighter jet still exists in Delhi, but Russia still has nothing special to offer here – the MiG-35 being too expensive for a light fighter (largely due to the use of two engines), while other alternatives are not available. Therefore, India’s choice, logically, may fall on the long proven American single-engine F-16 fighter jet.

Another troublesome project is the MTA (Multi-role Transport Aircraft) – a tactical military transport aircraft, which was to replace more than 100 old An-32 transporters being used by the Indian Air Force, as well as the AN-12, AN-26 and AN-72 in the Russian Aerospace Forces. The project promised great profits and huge production volumes, but misunderstandings arose between the parties, even before one prototype “in the metal” could be built.

In 2015, India officially withdrew from the project. Judging by what appeared in the media, the main problem was the difference when it came to the engines that were to be used in the aircraft. Russia proposed to install a new modification of the time-tested PS-90, while India sought the creation of a completely new engine, fitted with a digital control system (FADEC), which ensured minimum fuel consumption.

This loss for the United Aircraft Corporation has been a big setback, because the Russian Aerospace Forces also needed the MTA. With reduced funding, because of the economic crisis, building such an aircraft without external financing will be very difficult. It may be worthwhile to try to revive this project, especially since India does not have many alternatives – either purchase a rather expensive American C-130, which they will hardly allow to be assembled in India, or the rather poor-performing European A-400M.

First published in Russian by Forbes.ru.

Thus, the need for a lightweight fighter jet still exists in Delhi, but Russia still has nothing special to offer here – the MiG-35 being too expensive for a light fighter (largely due to the use of two engines), while other alternatives are not available. Therefore, India’s choice, logically, may fall on the long proven American single-engine F-16 fighter jet.

If the MiG-35 is too expensive then buy MiG-29M2 and upgrade it when the expensive bits get cheaper.

But the reality is that they never intended to buy MiGs... they wanted M2ks and were only offered Rafales... 12 billion for 272 Su-30s.... why piss around with Rafale when they could just spend the 10 billion for the MRCA contract and buy 240 more Flankers...

Single engined F-16s... yeah right... Flanker pilots will shoot them down...

http://www.ndtv.com/india-news/india-russia-to-sign-gpa-on-kudankulam-units-5-6-in-december-1633758

NEW DELHI: India and Russia are likely to sign the General Framework Agreement (GFA) on Kudankulam units 5 and 6 by this month.
"Leaders of the two countries (Prime Minister Narendra Modi and Russian President Vladimir Putin) had set a deadline to sign the General Framework Agreement for units 5 and 6 by the end of this month. The work is on and we are trying to stick to deadline," a top official of Department of Atomic Energy (DAE) said.
The joint statement, during Mr Putin's visit to India this year, had stated that the two countries will try to complete the GFA by the end of the year.

Negotiations for the contract are still on and details are being worked out by Nuclear Power Corporation of India (NPCIL) and Rosatom, nuclear power agency of Russia.

Work on the ground breaking ceremony for unit 3 and 4 was held early this year.

The agreement for the project was inked by former Prime Minister Rajiv Gandhi and then Soviet Union President Mikhail Gorbachev in 1988, but the actual work started only in 1997.

The unit 1 and 2 of Kudankulam plant were built at a cost of Rs. 20,962 crore. A major share of power generated in the plant goes to Tamil Nadu, followed by Karnataka, Kerala and Puducherry. Unit 1 was started in October 2013, while the second unit was connected to grid in August this year. Unit 3 and 4 of the Kudankulam are expected to be commissioned by 2022-23.

The Russian built Water-Water Energetic Reactor (VVER) reactor Kudankulam unit 1 and 2 are the largest power generating stations in the country. After all the units (1-6) of the plant are commissioned, the nuclear park will have the power generating capacity of 6,000 MW.


(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

GarryB wrote:

Thus, the need for a lightweight fighter jet still exists in Delhi, but Russia still has nothing special to offer here – the MiG-35 being too expensive for a light fighter (largely due to the use of two engines), while other alternatives are not available. Therefore, India’s choice, logically, may fall on the long proven American single-engine F-16 fighter jet.

If the MiG-35 is too expensive then buy MiG-29M2 and upgrade it when the expensive bits get cheaper.

But the reality is that they never intended to buy MiGs... they wanted M2ks and were only offered Rafales... 12 billion for 272 Su-30s.... why piss around with Rafale when they could just spend the 10 billion for the MRCA contract and buy 240 more Flankers...

Single engined F-16s... yeah right... Flanker pilots will shoot them down...

This tender was to simply cater to Narendra Modi's corrupt friends who got paid a suitcase of money by Lockheed. This entire tender from the get go was to purchase the jets from them but they are making a scene by making it look like they are catering to all sides but in reality it isn't going to do anything other than make people highly suspicious of India's business deals.

This should have been quite noticeable when they made it clear for a single jet engine fighter. Everyone knows Russia doesn't make single jet engine fighters anymore. Add to that, there really isn't anything special about single jet engine fighters as the engine needed to power it is about as expensive or more so than two RD-33 engines, and maintenance will be the same. All the while, the two jet engines are more reliable so that if 1 fails, you do not drop to the earth.

While F-16 is a good jet, India isn't doing its service by buying new ones. On contrary, they are replacing an old jet with a new jet that is just old as well in terms of design. The Teja's in all purpose was about same quality as F-16 and at least it is ready for production already instead of holding another tender. Some people here will think that they can do both, but that would end up making India worst than Saudi Arabia for commonality and logistics, and will end up a further blight to its airforce than anything else.

Yes, those Sukhois are far better, and India even proved it so during exercises. But when it comes to the corrupt base of India and its politics, there is no limit. If the US and Brits handed them enough cash to retire their Su-30MKI's for less capable F-18S/H or even significantly less capable F-16's (This was tested by Indonesia and proven by them of how good the Sukhois where), they would do it without a second thought. Indian's have a price, and no longer have pride. I don't blame them, I blame the British who left behind such a system that they created since Indian's weren't always like this throughout history. But they are now and Indians who post otherwise cannot see beyond their own two feet.

NEW DELHI: Despite India expanding its military ties with the US, Europe and Israel, Russia remains New Delhi's number one supplier of weapons with America at a distant second, according to a report on global arms trade in the last five years.

From 2012 to 2016, Russia supplied 68 per cent of India's arms import, as per the survey by Stockholm International Peace Research Institute (SIPRI) - an international think-tank that researches on conflict, armaments, arms control and disaarmament.

In the same period, the US supplied 14 per cent of arms to India, followed by Israel (7.2 per cent).

The SIPRI report also foresees Russia maintaining the lead in supplying weapons to India - which has emerged as the biggest importer of major arms with overseas procurements exceeding that of China and Pakistan.

"Based on existing orders and weapons, Russia will remain, by far, the main supplier of major arms to India for the foreseeable future," it said.

"However, India expects increasing deliveries due to several major orders from France (another traditional supplier) and from the US, South Korea and Spain - all of which only recently became suppliers of major weapons to India," said the report.

Prime Minister Narendra Modi has been making increasing efforts towards his flagship "Make in India" initiative that also endeavours to modernize the country's ageing military equipment.

Modi has pledged $250 billion for the domestic defence industry to manufacture fighter jets, guns and submarines locally.

But the SIPRI reports hints that India will be overwhelmingly reliant on foreign imports, mainly from Russia, the US and Israel -- as has been the trend in the last five years.

"A major reason for the high level of imports is that India's arms industry has largely failed to produce competitive indigenously designed weapons," said the report.

According to it, India is also the largest buyer of Russian weapons, taking home 38 per cent of Moscow's exports. It is also the largest buyer of Israel's weapons with a 41 per cent share of its exports.

For the UK, India is the second largest buyer, with 11 per cent share of its exports.

Significantly, India does not figure in the top three buyers of US weapons although Washington has designated New Delhi as its Major Defence Partner.

According to the SIPRI report, 47 per cent of US weapons went to countries in the Middle East.

Read more at:
The five biggest arms exporters were the US, Russia, China, France and Germany, together accounting for 74 per cent of the total volume of trade in weapons in the last five years.

Read more at:
http://economictimes.indiatimes.com/articleshow/57290157.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Single engined F-16s... yeah right... Flanker pilots will shoot them down...

Sorry... I now realise my above comment might have been misunderstood.

What I was trying to suggest is that an Indian Flanker pilot sees an F-16 he will assume it is an "enemy" aircraft and his natural instinct will be to shoot it down.

People get mistaken for game and shot all the time... it is a psychology thing.

Taking relations with Russia to another level, the Indian government has begun a discussion with Moscow for setting up another defense manufacturing unit under the ‘Make in India’ program. This was discussed when Indian Defense Minister Arun Jaitley met his Russian counterpart Sergei Shoigu recently.


Russia Hopes India to Join Initiative on Non-Deploying Weapons in Space

New Delhi (Sputnik) — Jaitley did not reveal the type of weapon being discussed to make in India. "We have future plans to set up manufacturing units in India and these are subjects of discussion which came up in my bilateral meeting with the Defense Minister and I am sure with the level of engagement we have, this relationship will continue to grow," Jaitley said

The $1-billion program of joint production of Kamov-226T has taken off this month with the final approval of Russian President Vladimir Putin to set up Indo-Russian Helicopter Pvt Ltd. Russia's Rostec Corp will own 49.5 percent stake while India's Hindustan Aeronautics Limited (HAL) will own the remaining 50.5 percent in the joint venture. Under the deal for 200 Kamov Ka-226Ts, 60 helicopters will be received in fly-away condition from Russia while another 40 will be assembled in India and the remaining 100 will be fully built in India.

"Russia has been a true and trusted friend of India, which is regarded so by the people of India and there has been a much greater cooperation at the level of defense. It is a cooperation which extends to joint military exercises, training cooperation and also with regard to the supply of equipment which India purchases from Russia," Jaitley said.

India and Russia identified a total number of 485 lines for Transfer of Technology (ToT) to support Sukhoi-30 MKI fleet. Towards this, 20 Indian vendors have been introduced to the Russian OEMs to find out the feasibility of ToT in the fields desired by Indian vendors.

In March this year, HAL signed an agreement with Russian OEMs for the long-term supply of spares and rendering technical assistance for five years which do not cover any technology transfer. The agreement will enable HAL to procure required spares based on the price catalogs directly from OEMs for the Sukhoi fleet and boost after-sales service by reducing lead time in the procurement of spares significantly

https://sputniknews.com/military/201704271053076576-india-russia-weapons-production/

Russian Deputy Prime Minister Dmitry Rogozin’s visit to India and his meetings with Indian leaders set the agenda for the St. Petersburg Summit. India and Russia decided that they would speed up defense and nuclear energy projects which form the backbone of their relations.


New Delhi (Sputnik) – Indian Prime Minister Narendra Modi and Russian President Vladimir Putin will hold the India-Russia Annual Summit on June 1, 2017 in St Petersburg.

Russian Deputy PM Rogozin met Indian Prime Minister Modi, External Affairs Minister Sushma Swaraj and National Security Adviser Ajit Doval on Wednesday

At the Summit meeting between President Putin and Prime Minister Modi, agreements are likely to be signed in some new areas of cooperation like agriculture, transport corridor, trade. India is likely to ask Russia to speed up defense projects which were agreed earlier.

India-Russia relations are all set to reach a new high as the two countries are celebrating the 70th anniversary of diplomatic ties.

“Both the countries are trying to give a fresh impetus to their relations and make it more relevant in the changing geo-political situations wherein Russian pro-active engagement in Asia, especially South Asia, has increased considerably in recent times. Although India has become closer to the US recently, due to some issues of common interests such as counter-terrorism and defense cooperation and also an alliance to counter China in the Indian Ocean and beyond, the India-Russia strategic partnership still stands on a solid foundation,” former Indian Foreign Secretary Bhupatray Shashank told Sputnik.

https://sputniknews.com/world/201705111053496234-russia-india-st-petersburg-summit/

India and Russia sign 5 pacts: All you need to know

India and Russia have linked 5 pacts after extensive talks between Prime Minister Narendra Modi and Russian President Vladimir Putin during the Prime Minister's visit to Russia.

India and Russia have linked 5 pacts after extensive talks between Prime Minister Narendra Modi and Russian President Vladimir Putin during the Prime Minister's visit to Russia.

Agreements between the countries:

1. An agreement on cultural exchanges for a period of two years (2017-2019) has been signed between the two nations

2. An agreement for the construction of the third stage of the Kudankulam NPP (KK5 & KK6) along with the Credit Protocol has been signed between NPCIL and ROSATOM

3. An agreement between the Federal Service for Intellectual Property (Rospatent) and the Council of India on Scientific and Industrial Research has been signed to provide access to Rospatent experts to the Indian Digital Library of Traditional Knowledge (TKDL)

4. Contract between JSC (Russian Railways) and the Ministry of Railways on the preparation of the justification for the implementation of the high-speed service at the Nagpur-Secunderabad section has been signed

5. Memorandum of cooperation between ALROSA Joint Stock Company and the Council for the Promotion of the Export of Precious Stones and Jewellery of India has been signed

Other deals between India and Russia:

1. India and Russia have agreed to hold the first tri-Services exercises, named 'Indra-2017', this year

2. Both the countries have also decided to begin joint manufacturing of frigates and co-production of Kamov-226 military helicopters

3. Of all the agreements, the agreement on setting up of Units 5 and 6 of the Kudankulam Nuclear Power Plant (KNPP) in Tamil Nadu with the Russian help was a much-awaited agreement

4. The reactors will be built by India's Nuclear Power Corporation of India Ltd (NPCIL) and Russia's Atomstroyexport Company, which is a subsidiary of Rosatom. Rosatom is the regulatory body of the Russian nuclear complex. The two units will have a capacity to produce 1,000 MW of power

An 'Action Plan' has also been devised for speeding up the bilateral cooperation in all fields by the two countries.

http://russia-insider.com/en/us-strikes-russia-india-defense-ties/ri21405#.WfcQZO50IrQ.twitter

India will have to choose either sovereignty or vassalhood it seems.

https://twitter.com/ArtyomLukin/status/928371678387818499

Looks like India really is no friend of Russia since its allowing US access to Russian secrets as well as breaking contracts

miketheterrible wrote:https://twitter.com/ArtyomLukin/status/928371678387818499

Looks like India really is no friend of Russia since its allowing US access to Russian secrets as well as breaking contracts

They haven't really been "friends" for at least the tenure of the current and previous Indian governments....the official smiles and occasional BS posing for the cameras don't really mean much. That's why now Russia is openly seeking better ties with Pakistan

Apparently the Russian's were upset about giving acces to the aircraft carrier but since that is Indian property they only protested privately. Now the news that a US delegation was shown around the Chakra is apparently causing a possible break of the negotiations for the transfer of the second sub.

Rogozin is due to go there in December to try and resolve "several issues"

https://bmpd.livejournal.com/2937580.html