PM arrives in Kazakhstan, to discuss trade, energy ties

Agreements likely on nuclear energy, hydrocarbons, pipelines and transport.

Prime Minister Manmohan Singh began the second leg of his trip abroad here today, a two-day official visit to Kazakhstan, raising hopes of India further strengthening its energy security.

He flew in here this afternoon, at the end of a seven-and-a-half hour flight from Sanya (China), where he attended the BRICS (Brazil, Russia, India, China and South Africa) Summit yesterday. He also held four bilateral meetings with BRICS leaders, including a significant one with Chinese President Hu Jintao.

At the airport here, the Kazakh oil and gas minister, Sauat Mynbayev, received the PM, according a brief ceremonial welcome.

Singh’s visit is set to result in a string of new agreements and mechanisms to strengthen cooperation with Kazakhstan in nuclear energy, hydrocarbons, pipelines and transportation.
 

WHAT THEY WILL DISCUSS

• Greater access to Kazakh uranium, including joint mining
  
• Nuclear reactor co-operation with Kazakhstan on the cards
  
• Better ties on oil exploration and production likely

There is a likelihood of India gaining further access to Kazakhstan’s rich uranium resources and examining the possibility of joint mining of uranium there itself. India would like to explore various possibilities on procuring uranium from Kazakhstan, as it considers the central Asian country a reliable and stable partner.

India may also share with Kazakhstan its expertise on nuclear reactors, particularly those with a smaller capacity. A feasibility report on the supply of reactors to Kazakhstan is on the cards. Preliminary discussion on these new cooperation arrangements had already begun, with senior Department of Atomic Energy officials reaching here earlier.

In the oil sector, Oil and Natural Gas Corporation is set to sign an agreement with its Kazakh partners on hydrocarbon research, exploration and production. Senior ONGC officials and Union petroleum secretary S Sundareshan have been here to give final touches.

The question of reviving talks on an early implementation of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline for petroleum products will also come up for review during the two-day visit. The Indian government’s assessment is that this does not suffer from the weaknesses that other pipeline projects suffer. It is technically feasible, as it has assured gas supply and the terrain it passes through is not as hostile and trouble-prone as other pipeline projects in that region.

From the energy security point of view, too, the Indian government is keen on pursuing TAPI, as it allows the country to hedge its energy risks. India meets almost two-thirds of its energy needs through West Asia and exploring new options in central Asia can enhance energy security.

Transportation bottlenecks coming in the way of smoother trade with Kazakhstan will also come up for review. An attempt would be made during the visit to reduce transaction costs on trade. One issue that may come up is the inordinately high shipping cost for transporting goods from Kazakhstan to India.

On the political front, Singh’s meetings with Kazakh President Nursultan Nazarbayev will strengthen India’s ties at a significant time. This is Singh’s first visit to Kazakhstan and the last time an Indian PM visited was in 2002. Kazakhstan will become chairman of the Organisation of the Islamic Conference, the 57-member grouping of Muslim countries, and is already chairman of the six-nation Shanghai Cooperation Organisation, where India now enjoys an observer’s status.