Question: Denis Evgenievich, I would like to congratulate you on your appointment, given what an important and large neighbor and partner India is for the Russian Federation. How do you see the cooperation of our countries in the future?
Answer: Thank you for the congratulations. First of all, I would like to note that Russia and India have a remarkable history of relations, in a sense even unique: there have never been conflicts or even prerequisites for such between our countries. This is very rare for such large countries as Russia and India. Our ties are a story of strong and stable friendship, because it is based on feelings of trust, mutual respect carried through decades, and willingness to help in difficult times. I see my task as helping to strengthen these foundations in every possible way.
Contacts between our countries, both on the state line and on the public, were not interrupted during the pandemic. On the contrary, they are continuously expanding, filled with new content. Russian-Indian relations are developing for the benefit of our peoples, serving the goals of ensuring international security and stability, the formation of a multipolar world order, social progress, and sustainable development. For 75 years since the establishment of diplomatic relations, we will celebrate this date in April, an extensive system of interstate mechanisms has been built, an impressive contractual base has been developed. These mechanisms are being improved, cover new areas and promote further cooperation.
Separately, I would like to note that Russia and India have rallied in the fight against the new coronavirus infection. Thanks to our joint work, we are largely able to cope with the severe consequences of the pandemic. Now in India, the release of the Russian vaccine “Sputnik V” has been established. Just the day before, it became known about the approval of the Sputnik Lite vaccine by the Indian regulator. We are currently working together on building a mechanism for mutual recognition of coronavirus vaccination certificates.
Question: Is there an approximate understanding in which mutual recognition of certificates is possible in the foreseeable future?
Answer: I think this process will take some time. But, of course, it should not be delayed. Such an agreement will greatly facilitate mutual exchanges.
India last year became the first country, apart from the Russian-American contact in Geneva in June, where Russian President Vladimir Putin made his first visit since the beginning of the pandemic. This is a sign of the special importance that both countries attach to a privileged strategic partnership. On the same day, December 6, 2021, we held the first meeting in the so-called “2+2” format with the participation of foreign ministers and defense ministers.
Question: For the first time in history.
Answer: Yes. This is a new format. It is also evidence that our political cooperation is strengthening, new opportunities for in-depth dialogue are being created. Undoubtedly, Russia and India will continue to work intensively together in key areas both in a bilateral format and on multilateral platforms – at the UN, within the framework of BRICS, SCO, in the Russia-India-China format.
We have serious reserves in the trade and economic field. Our political agenda is built on positive principles, pursues unifying goals and is a significant stabilizing factor in international life. I am sure that the importance of Russian-Indian relations for the whole world will grow.
Question: You have already touched on the topic of coronavirus. It is known that the tourism industry is one of the most affected. Are negotiations underway between Moscow and New Delhi to restore tourist flows, provided that the epidemiological situation will gradually improve?
Answer: Yes. We are conducting such a dialogue, and the task of restoring tourist flows at the pre-pandemic level is one of the priorities. Before the outbreak of the pandemic, our tourist ties were steadily growing. If you look at the statistics, for example, four years before the pandemic, the Russian tourist flow to India was steadily growing. It exceeded a quarter of a million people in certain years. The Indian tourist flow to Russia grew steadily, although it was several times inferior to the number of trips of Russians to India.
Restrictions imposed in March 2020 due to coronavirus for Indian citizens were lifted a year ago. India is included in the list of countries whose citizens can visit the Russian Federation on electronic visas. This mechanism has not yet been activated due to the pandemic. However, Indian citizens will be able to take advantage of this opportunity after the normalization of the epidemiological situation.
In India, the electronic visa system has been operating since 2014. Since October 15, 2021, Indians have resumed issuing visas to foreign citizens, including Russians arriving by charter flights. From November 15 , 2021 India can already be visited by flights within the framework of the so-called air bubbles. Aeroflot flies to New Delhi twice a week. Upon arrival in India, it is necessary, of course, to take a PCR test, before departure, too, to have a negative PCR test. For now, a seven-day quarantine is in effect upon arrival in India. But as the situation improves, I am sure that tourist flows between our countries will resume on a full scale and will increase.
Question: Let’s hope so. In 2019, the leaders of the two countries agreed to increase the bilateral trade turnover to $30 billion by 2025. In your opinion, which projects need to be launched or strengthened in order to achieve this goal?
Answer: To be precise, this goal was set back in 2014. Since then, illegal sanctions have been imposed against Russia, which India does not recognize, but somehow has to take into account. No one expected that such a large-scale pandemic would break out. All this creates difficulties, but, nevertheless, we are systematically increasing bilateral trade. For clarity, I would like to give fresh statistics. From January to November 2021, the trade turnover between our countries amounted to $12 billion. This is a record trade figure for many years. It can be argued that its final annual value will be even higher.
In the structure of Russian exports, the supply of crude oil and petroleum products tripled; distillates – more than four times; diamonds – 1.5 times; gold – 3.3 times. At the same time, the export of radar equipment, for example, increased 65 times. And vaccines – 911 times. What does this mean? That the greatest potential in trade with India is contained in the promotion of exports of high-value-added products, processed goods, high-tech goods. These are machinery, equipment, pharmaceutical products, food products, but also fertilizers, products of the timber industry.
Medicinal products, components for machinery and equipment, textiles and textile products, and food products come from India to Russia. We continue intensive consultations with the Indians on the conclusion of an updated intergovernmental agreement on mutual protection of investments, as well as work to eliminate restrictions and barriers in mutual trade.
Of course, not everything comes down to pure trading. Traditionally, projects in the energy sector have been successfully implemented. The construction of our flagship project, the Kudankulam nuclear power plant in India, is progressing. Blocks 1 and 2 are functioning normally. Russian equipment is being shipped for blocks 3 and 4 of the second stage. In June last year, the first concrete was poured on block 5. We expect the official consolidation in India of a new site for the construction of nuclear power plants according to Russian projects. This will make it possible to realize strategic goals envisaging the construction of at least 12 Russian-designed power units on Indian territory within 20 years. We have good multilateral cooperation in the nuclear energy sector. The Ruppur project is being successfully implemented in a trilateral format with Bangladesh.
India’s participation in such landmark projects as Arctic LNG 2 and Vostok Oil seems promising. Cooperation in the scientific and technical sphere is being successfully implemented. At the end of last year, we signed a roadmap with the Indians on cooperation in the field of science, technology and innovation. Cooperation is expanding in such areas as satellite navigation, space sciences, manned programs, and the development of rocket technologies. There are reserves in the field of shipbuilding and mechanical engineering. We have good offers for Indians in the aircraft industry.
Recently, a draft of a new budget was presented in the Indian Parliament. The fiscal year in India begins on April 1. For the financing of railway construction in India, for example, allocations are expected to increase by 14%. It seems to me that this can contribute to our cooperation in the field of railway construction. The experience gained by Russian Railways in the framework of the Nagpur-Secunderabad section modernization project for high-speed traffic may be in demand.
Question: You have already mentioned energy and, in particular, Arctic LNG 2. Do you think any new projects are possible between Russia and India, for example, for the production of LNG, in order to increase trade turnover?
Answer: I think they are possible. There is Indian interest in Russian liquefied natural gas. India, as you know, is a consumer of energy resources. And it is interested in diversifying supplies. Such large deposits as ours on the Arctic shelf are very interesting to her. Now the relevant negotiations are underway with the Indians. Gazprom already supplies liquefied natural gas to India. During the visit of Russian President Vladimir Putin last year in December, Rosneft and the Indian company Indian Oil Corporation also signed a major contract for the supply of oil to India. Indian companies own half of the stake in the development of the Wangkor field.
Question: You mentioned the Arctic. Should we expect an even greater increase in India’s interest in the Arctic and, for example, in the Far East?
Answer: Indian interest in the Far East is already great. Our cooperation in the development of the Russian Far East is one of the promising areas of our cooperation in general. Within the framework of a special preferential regime, this is the free port of Vladivostok, Indian investors have already implemented three projects with an investment volume of more than a billion rubles. This is a project of the company “Jaytea Rus” on the creation of a tea-making factory, two projects on the organization of diamond-cutting enterprises.
Cooperation in the field of shipbuilding can be promising. The Indians were interested in the Zvezda shipbuilding complex in Primorsky Krai.
There is a desire of Indian partners to participate in the development of international educational and technological clusters based on the Far Eastern Federal University. A representative office of the Indian University Amity has already been opened there, and a representative office of FEFU has been opened in India. We will involve Indians in the implementation of educational programs, as well as investment projects in this area.
Very promising cooperation can be in the development of maritime trade routes. Efforts are being made to launch the Vladivostok-Chennai sea artery. The Indian side demonstrates an undoubted interest in the Northern Sea Route. For our part, we plan that by 2035 the NSR will become a global transport corridor that will connect the Asia-Pacific region with Europe and ensure efficient and safe transportation of goods. It is 40% shorter than the route through the Suez Canal and allows you to travel from the largest ports of the Asia-Pacific region to Rotterdam eight days faster.
Question: Can we say that Indian interest in the Northern Sea Route is quite substantive? Or does India still have more general plans in this regard?
Answer: The interest of the Indians is undeniable. It is clearly marked. As far as I know, we are not cooperating specifically yet, but I am sure there will be cooperation in this direction with India.
Question: When Russian President Vladimir Putin was in India, he and Indian Prime Minister N. Modi agreed to promote settlements in national currencies. Tell me, please, how is this process going now?
Answer: We have a mechanism with India, and it works – a mechanism for mutual settlements in national currencies. We are systematically increasing payments in national currencies. I can say that as of the first half of last year, the share of the ruble in total settlements with India is already tens of percent. Moreover, payments in rubles for services are already more than half of the volume. For goods – a little less, but still tens of percent.
We are working on the possibility of connecting Indian credit institutions to the financial message transmission system developed by the Bank of Russia. This topic is regularly touched upon during bilateral consultations. We hope that the Indians will be able to achieve concrete results in this area in the near future.
Question: As far as I understand, the percentage of those transactions that are carried out in national currencies is already approaching several tens of percent of the total number of transactions?
Answer: Yes.
Question: I would like to touch upon such a long-standing important area of cooperation between Russia and India as the military-technical cooperation. How is the overall cooperation between Moscow and New Delhi progressing in this important industry?
Answer: Russia remains India’s main partner in the defense sector. Since the days of the Soviet Union, we have been carrying out the closest and extremely large-scale cooperation with India in the military-technical field. At this stage, we are no longer just selling weapons, but transferring their production technologies. This is now a key characteristic of our interaction and, in general, the Indian approach to cooperation with other countries in the defense sphere. There are few people in this area, and perhaps no one offers technology to the Indians to the same extent as we do.
We cooperate with the Indians within the framework of the programs launched by them “Make in India” (“Make in India”), “Self-sufficient India”. Such a new project as the production of AK-203 assault rifles can also be considered in this context. We have a lot of things in the cache for the Indians. So, our military-technical cooperation is very large-scale. The prospects are great, the plans are great. It will remain so for the near and medium term.
Question: Despite the close and long-standing cooperation in the military-technical sphere, the Americans often threaten India with sanctions because of the S-400. Will American threats, in your opinion, affect the prospects for cooperation between Russia and India in the field of military-technical cooperation?
Answer: So far they have not affected in any way. I suppose they won’t. The Indians have repeatedly said that this deal corresponds to the interests of its security, that India pursues an independent foreign policy and negatively perceives the pressure that is being exerted on it. The S-400 deal is a matter for our two countries and no one else. Therefore, there is no reason to believe that the Indian position will change in the future.
This project is being implemented. Deliveries are being made.
Question: The media reported that the Minister of Chemical Industry and Fertilizers of India may come to Russia in February or early March. Does the Russian side have any information?
Answer: I honestly don’t have the latest information on this. I have seen reports that an Indian representative is going to visit Russia. I can confirm that there is Indian interest and requests to increase the supply of fertilizers. This topic is being discussed.
We have offers for the Indians. Cooperation in this area will continue.
Question: India is a close friend of Russia, China is also a long-time friend of the Russian Federation. At the same time, territorial disputes sometimes break out between India and China over Ladakh. Does Russia plan to mediate in this dispute? Is Moscow’s participation necessary in order to avoid this between our closest partners?
Answer: No. We have no such plans. But if such a wish is expressed on both sides, then of course we will consider it very carefully. We have no plans for mediation for a simple reason: both sides consider the territorial dispute between them as a purely bilateral matter.
We respect this position and are not going to interfere. We hope, of course, that the territorial problem will be resolved as soon as possible by purely diplomatic means. Because there is simply no military solution to this issue.
