The Hindu Business Line : Energy can be big story of Indo-Russian ties, says Ambassador Sibal

HIGHLIGHTING the problems faced by Indian businessmen in obtaining visas for Russia, Mr Kanwal Sibal, Ambassador, Embassy of India, Moscow, said, "Our efforts to reach a business visa facilitation agreement with Russia are stalled for the time being even though drafts have been exchanged between the two Governments and India is willing to sign an agreement on re- admission."

While there was increasing recognition in India and Russia to improve the long-standing relationship between the two countries, there were issues that posed a problem which needed to be smoothened out, said Mr SibalHe was speaking at the inaugural session, on Friday, of the `India Russia Business Partnership 2005, Redefining Horizons', organised by the Confederation of Indian Industry (CII) here.

Bilateral trade between India and Russia stood at $3.15 billion and was not commensurate with the level of political engagement between the two countries, he said.

Traditional exports down: He highlighted the sharp reduction in the exports of tea and tobacco, leather, bovine meat and diamonds. "Our traditional exports of tea and tobacco to Russia have declined sharply. Despite the political sensitivities in India connected with the falling tobacco exports, we have not been able to find a solution," he said.

Mr Sibal said India was keen to invest in the energy sector in Russia. "The big story of the India-Russia relationship can be energy.

India has already invested a couple of million dollars in Sakhalin-I. Stepping up energy co-operation has been a subject of discussion between the top leaderships of the two countries and political signalling seems favourable. ONGC, OVL and GAIL have signed strategic cooperation agreements with Gazprom and Rosnet," he said.

Areas of cooperation: He named the areas of co-operation between the two countries as machinery, technical equipment and high-tech products. IT, banking software, pharmaceuticals, automotive components, construction equipment and knowledge-based industry were other big areas of future co-operation, he said.

Mr H.E. Vycheslav Trubnikov, Ambassador, Embassy of Russia, the Russian Federation in India, said the two countries had taken steps directed at developing trade and economic co-operation, searching for new business and investment opportunities and increasing awareness about interaction between the two countries.

Mr R. Seshasayee, Vice-President, CII, Managing Director, Ashok Leyland Ltd, suggested some action points for the business and political communities of the two countries. Topping the list was the need to increase bilateral trade to $5 billion by 2008-09. "To achieve this target we need to establish a joint task force with Government representatives of both sides to smoothen out all the issues," he added.

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