Modi, Putin ink multi-billion dollar defence agreements

PM says 'an old friend is better than two new friends'

If Russia has been cut up with its old friend India, Prime Minister Narendra Modi on Saturday did his best to extend a firm handshake to reinvigorate the warmth that Moscow and New Delhi have shared over the past 70 years.

The two sides signed 16 agreements, including multi-billion dollar orders for Russian helicopters, missiles and frigates. Besides the purchase of S-400 Triumf long-range air defence systems from Russia at a cost of around $5 billion (about Rs 36,692 crore), the other two deals are for procuring four Admiral Grigorovich-class (Project 11356) guided-missile stealth frigates and setting up of a joint production facility for making Kamov helicopters.

“As they say in Russian, ‘an old friend is better than two new friends’,” Modi said in his statement after meeting visiting Russian President Vladimir Putin on the sidelines of the BRICS Summit here. In recent years, Moscow has witnessed the growing India-US defence and strategic ties.

Modi said Russia will remain India’s major defence and strategic partner, and that his meeting with Putin has laid “the foundations for deeper defence and economic ties in the years ahead.” He said the two nations have shown “unmatched reciprocal support to each other’s core interests”.

Putin didn’t disappoint India on its key concern, terrorism. He said Moscow understood India’s concerns on terrorism, and “noted the commonality of positions of both countries on such issues as war on terrorism.”

The Indian side, which has already conveyed its unhappiness to Moscow on the recent Russia-Pakistan military exercises, “expressed its appreciation for Russia’s unequivocal condemnation” of the Uri terror attack.

Modi said: “Russia’s clear stand on the need to combat terrorism mirrors our own. We deeply appreciate Russia’s understanding and support of our actions to fight cross-border terrorism that threatens our entire region. We both affirmed the need for zero tolerance in dealing with terrorists and their supporters.” India and Russia stressed the need for a strong international legal regime built on the principle of ‘zero tolerance’ for direct or indirect support of terrorism.

While the consensus on the General Framework Agreement and Credit Protocol for Kudankulum nuclear reactors 5 and 6 eluded the two delegations, the joint statement said it would be concluded by year end. The two also dedicated Kudankulum 2, laid the foundation for reactors 3 and 4, and proposed the construction of another eight.

On defence ties, Modi said the agreements on joint production of Kamov 226T helicopters, constructions of frigates and acquisition and building of other defence platforms will help achieve the objectives of Make in India. The two sides agreed to institute an annual military industrial conference that will allow stakeholders on both sides to push for collaboration.

Modi said Indian companies have invested around $5.5 billion in Russia’s oil and gas sector, and are looking at expanding the scope of engagement.

“A combination of robust civil nuclear cooperation, LNG sourcing, partnership in the oil and gas sector and engagement in renewables can construct a promising ‘Energy Bridge’ between our two countries,” the PM said. The Russian side expressed interest in attracting Indian oil companies to participate in joint projects in the offshore-Arctic fields.

Modi said India, with Putin’s backing, hoped to fast track its association with the Eurasian Economic Union Free Trade Agreement. He also announced the setting up of an investment fund of $1 billion between the National Investment and Infrastructure Fund (NIIF) and the Russia Direct Investment Fund to advance infrastructure partnership.

India said it “recognised” Russia’s effort towards achieving a political and negotiated settlement in Syria.