INDIA-RUSSIA ENERGY COOPERATION BLOOMING TIES BEYOND THE HORIZON

Abstract

Russia and India have a long history of cooperation in the energy sector. The prospects for the development of the energy dialogue are as promising now as they were during the period of friendship between the Soviet Union and India. Since the late 2000s, the Russia–India energy partnership has been enjoying a renaissance. So why is now the time for Russia to think seriously about giving a new impetus to the energy dialogue with India? India is the worlds third largest energy consumer and a major energy importer with steadily growing demand. Russia is a key global producer and exporter of petroleum and natural gas. The two countries needs naturally complement each other. The current energy bilateral cooperation, already strong, can significantly extend to new sources such as Liquefied Natural Gas (LNG). Building on these can be an industry in natural gas vehicles and renewable energy, enabling economic instruments, such as energy benchmarks, and a policy framework, including labour mobility, to develop a skills corridor in energy. This paper examines the current state of Energy and economic relations between India and Russia. It flags the major issues that hinder development of economic ties between the two countries and discusses future prospects for growth. India and Russia have a long-standing relationship and securing an economic and energy partnership is important from both the diplomatic and geopolitical perspectives. Russia has a vital role in ensuring Indias energy security in the coming decade. India imports oil, mostly from the volatile region of the Middle East. However, to sustain current high rates of growth, India needs to secure and diversify its energy sources. How Russia is an obvious choice in this respect?