INDIA: Russia's Putin eyes more arms, nuclear deal with India.

Russian President Vladimir Putin arrives in India to strenghthen bilateral ties and seal a lucrative deal for contracts for nuclear reactors. Russian President Vladimir Putin arrived in India on Thursday (January 25) with hopes to move Moscow closer to its long-term Asian partner and seal lucrative new contracts for nuclear reactors and arms sales. Putin is scheduled to meet Indian leaders on Thursday and Friday (January 26) and be the guest of honour at the official celebrations of India's main national holiday Republic Day -- a reflection of the historically close ties between the two countries. On his arrival, Putin was greeted by Indian Prime Minister Manmohan Singh at the airport. The two leaders held a brief discussion ahead of their business meeting scheduled later in the day. Russia expects a multi-billion dollar deal to build additional nuclear reactors. Two Russian reactors are already under construction in India, where rapid economic growth is driving a demand for an additional supply of energy. Moscow is also interested in inviting Indian investment in the Sakhalin-3 oil and gas exploration blocks in the Pacific. Russia, however, faces competition from the United States for the lucrative Indian nuclear power and arms markets. Last month, U.S. President George W. Bush signed legislation effectively ending a U.S. ban on civilian nuclear trade with the country. In 2005, Washington and New Delhi struck a framework agreement to boost ties in the military sector. But for now, India is the second-biggest buyer of Russian weapons after China. Up to 80 percent of weapons and hardware now in use by New Delhi has been supplied by Moscow, say experts. Ivanov said Russia would pitch its MiG-35 combat jet in an Indian tender for 126 fighter aircraft. He added Russia was ready to start negotiations about India's participation in developing a fifth generation fighter due to make its first flight no later than 2009. After the Cold War alliance between Moscow and New Delhi collapsed together with the Soviet Union, Russia has maintained a "strategic partnership" with India, supporting its Asian ally's quest for a bigger international role. India is reciprocating. India has observer status in the Shanghai Cooperation Organisation, a regional group uniting Russia, China and four ex-Soviet Central Asian republics. The Kremlin has also promised to back India's ambitions to become a permanent U.N. Security Council member if a decision is made to expand the current five-member group, which includes the United States, Russia, France, Britain and China. However, close political ties have so far failed to ignite a trade boom. Annual turnover stands at around $2 billion, which

ITN Source | January 25, 2007

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