Nikkei: Russia is developing energy partnership with India, but China remains the priority

Nikkei: Россия развивает энергетическое партнёрство с Индией, но Китай остаётся в приоритете

Despite the fact that the last time Moscow and Delhi are actively developing cooperation in the energy sector, in this sector of China as a partner still plays a major role, according to Nikkei Asian Review. However, despite the geographical difficulties, the Kremlin intends to strengthen relations with India that will help it to diversify and broaden economic ties with new Delhi.

India and Russia are developing a partnership in the energy sector. How to pay attention to Nikkei Asian Review, Delhi is looking for suppliers to meet our growing energy needs, but Russia is the main priority in this area is cooperation with China.November 12, the largest oil refining company of India Indian Oil Corp. said that amid increasing tensions in the middle East, which could lead to shortages of energy supplies, it carries on negotiations with “Rosneft” about increased purchases and increased investment in Russian projects. The resource emphasizes that in recent years India has taken the place of the Western businesses, who fear contact with the energy sector of Moscow, and has invested more than $10 billion in such Russian initiatives as “Sakhalin-1”, Vankor oil and gas field and the company “TAAS-Yuryakh Oil production.”In addition, in recent months, India has expressed interest in major projects “Arctic LNG 2 and Arctic LNG 3”, as well as in a large-scale program of “Rosneft” “Vostok oil”, which is estimated to be worth $157 billion. Russia, in turn, builds in India nuclear power plant. And in 2017, Rosneft acquired a stake in the Indian Essar Oil.But this country is not going to stop, highlights the Nikkei Asian Review. During the September visit of Prime Minister of India Narendra modi in Delhi Vladivostok and Moscow has outlined a five year plan to create a “far East energy corridor” which will contribute to the increase in volumes of deliveries of Russian oil, gas and coal to India.Assistant Professor, international relations Department, Oriental Institute — school of regional and international studies FEFU Artyom Lukin, in terms of energy India Russia needs to diversify its customers and not to depend solely on Europe and China.Lukin thinks that from the point of view of geopolitics, from India to Europe and even China has certain advantages. So, at new Delhi, unlike many European countries, there is no objection to the Russian company bought shares in Indian oil companies. And relations with China, though, and today are at a high level in the long run are more geopolitical risks than relations with India.Says a senior partner at Moscow consulting firm Macro Advisory Chris Weafer, Russia uses energy cooperation to develop contacts in other economic spheres, as well as in politics. For Moscow, analysts say, good political relations and business — the perfect combination. “With India we clearly observe good political relations, and Russia wants to secure it by using a good economic cooperation”, — quotes the resource. Energy deals Russia intends to strengthen trade ties with India and attract its investors.For India, the development of energy relations with Russia is also an important task. Today 80% of its oil imports new Delhi from the Middle East, so that the background of the volatile situation in Moscow region looks very attractive partner.But despite the fact that Russia meets India’s back in an effort to strengthen energy partnership, its “pivot to Asia still mostly around China”. In 2016, Russia surpassed Saudi Arabia as the largest oil supplier to China, and on December 2, will be launched the long-awaited pipeline “Power of Siberia”, which will annually deliver 38 billion cubic meters of gas to China. Thus China will be in second place after Germany among consumers of Russian gas.As explained in the commentary for the Nikkei Asian Review Chris Weafer, Moscow is much easier to develop energy cooperation with China because the two countries have a common border. India is simply too far from Russia, and these geographic realities have to consider — from Qatar, or even Australia tanker is cheaper to bring liquefied natural gas to India, than from the Russian Yamal Peninsula. To build the pipeline, although not impossible, but again, very expensive, because to lay his will through the Himalayas or Pakistan.The resource also emphasizes that energy is not the only sphere in which relations with Russia Beijing ahead of Delhi. Despite the fact that for many years India and Russia have maintained close cooperation in the defense sector, in recent years, namely China Moscow delivers its advanced weaponry, including su-35 fighters and s-400.However, according to Artyom Lukin, if Russia “right play your cards right”, to choose between two promising, and competing partners, it does not have. “View on Russia’s foreign policy in the middle East, where Moscow, through skillful diplomacy, with all good relations, while all the players are almost on the brink of war with each other. Why would we just do not behave with India and China, especially considering that they themselves seem not too eager conflict?” — says the analyst.

Share Button