India, Russia to strengthen economic ties

Friday, 16 May 2003, 19:30 IST
Printer Print Email Email
MOSCOW: India and Russia, which view their close ties as a strategic partnership, Thursday said they would "expand the existing trade basket" by providing special thrust to the energy and information technology sectors. Agreement on this was reached during External Affairs Minister Yashwant Sinha's talks with Russian Prime Minister Mikhail Kasyanov, Deputy Prime Minister Alexie Kudrin and Foreign Minister Igor Ivanov here. Both sides reaffirmed their commitment to the full implementation of the joint declaration on strengthening and enhancing economic, scientific and technological cooperation signed during President Vladimir Putin's visit to India. They agreed that its implementation would "impart a new thrust and dynamism to our bilateral commercial and economic engagement," an official statement from the Indian side said. Sinha was in Moscow to co-chair the ninth session of the Indo-Russian Joint Commission, the apex body to provide guidelines on bilateral cooperation in trade, economic, cultural, scientific and technical spheres. The two-day session concluded Thursday. Sinha also met U.S. Secretary of State Colin Powell who was also here at the same time. The statement said during the meeting with the prime minister, Sinha sought Russia's cooperation in addressing three major areas of concern to both sides - absence of physical and financial infrastructure, faster clearance of goods and extended contacts between their banking sectors. He also sought Russia's agreement on a "flexible and friendly" visa regime to facilitate increased business exchanges. He informed his Russian hosts that the Confederation of Indian Industry (CII) would be opening an office in Moscow soon to facilitate business-to-business contacts. The Russian leaders agreed that existing trade and investment levels were far below their potential and that economic and commercial cooperation needed to be core of the strategic partnership between the two countries. The statement said Kasyanov assured Sinha of Russia's full understanding and support for the creation of a climate for growth of commercial and economic ties. Both sides agreed to expand contacts between their financial institutions to build "trust and greater understanding" and encourage banks to open branches in each other's country. They also felt that there was need to impart a new dynamism to their investment ties. While India had invested $1.7 billion in Sakhlain-I oil and gas block in Russia and Moscow had made a matching investment in the Koodankulam nuclear plant in Tamil Nadu, the business sectors of the two countries should explore more avenues of investment.
Source: IANS