Russia may increase oil production to stabilise global prices: Official

Prime Minister Narendra Modi raised the issue of rising crude oil prices and its impact on the domestic economy during his meeting with Russian President Vladimir Putin, who assured him that his country would enhance production of petroleum in order to stabilise global prices, a top Indian official said.

The issue was discussed amidst apprehensions about a steep rise in global oil prices in view of US sanctions on Iran, a major oil producer.

Modi also laid emphasis on 'Make in India' in the defence sector during his talks with the Russian president, the official said.

The official added that the prime minister expressed the need to move beyond the buyer-seller relationship and suggested setting up joint ventures to partially or wholly manufacture in India.

"In principle, President Putin was supportive of the idea," the official added.

On possible purchase of frigates for the Navy and the joint venture on Kamov helicopter, discussions did take place but it was not finalised, the official added.

The leaders also discussed the rupee-rouble mechanism, and both were on the same page that the countries need to ensure that more trade takes place in their own currencies, the official said.

The rising global oil prices also came up for discussion between the two.

"Prime Minister did speak of the rising oil prices. It had an impact on the domestic economy and President Putin conveyed that Russia would work together with us to see that there is a stability in oil prices. And, if needed, Russia would enhance its production of petroleum in order to stabilise the global prices," the official said.

Modi said there was a significant Indian investment made this year in the Russian oil sector and India looks forward to make further investment.

Putin also mooted the possibility of a private partnership of Indian entities to explore Arctic gas, the official said.

The two leaders also discussed on Russian Far East, which Putin felt was a "new unexplored opportunity for India" in terms of resources, oil and gas, trade.

The two leaders agreed to develop a Far East Strategy where the two countries would work together in the Far East.

"That includes investments by Indian companies, but also the possibility of joint investment, including mining such as diamonds for instance. This was a new unexplored opportunity for India in terms of resources," he said.

There was also discussion on Pakistan, but it was in context of Afghanistan, the official added.

There was a substantial discussion on connectivity, inducing the links between India and Russia through the International North South Corridor on how the two sides can make that effective, the official said.

"Chabahar was not discussed, but I presume it is implied because that is the only way at this stage at which we have connectivity. BRI (Belt Road Initiative) was not discussed. The Russian side has never endorsed the BRI. They say, we recognise the BRI, but we have our own connectivity plan. The Indo-Pacific did not figure in the discussion," the official said.

The Russian side was keen on India to have a look at its civilian aircraft technology, which President Putin termed that it was at par with the West, the official added. Russia was also keen on providing a rivercraft keeping in view the Sagarmala and inland waterways project.

On his part, Modi highlighted the IT industry and pharma industry and hope the Russian market will be substantially opened for Indian pharmaceutical formulations, the official added.