Working group to draft India, Russia economic cooperation pact

Zhukov, who cochaired the session with External Affairs Minister Pranab Mukherjee, said the two countries have already set to increase the bilateral trade turnover to $10 billion by 2010, expanding cooperation from the traditional military sector to other spheres, including industry, energy and investment. He said Russia and India would discuss the possibility of Indian companies participating in energy projects in east Siberia and other Russian regions.

Zhukov said the Letters of Exchange on utilising the Rupee debt for investments in India, will be signed during the summit of President Putin and Prime Minister Manmohan Singh next November. The Rs 46.5-million debt has so far not been utilised for investments in India. “The two countries have already singed an agreement to set up a joint venture in the construction of titanium dioxide plant in India with the use of the Rupee debt,” he said.

Zhukov said the sides were currently discussing a joint venture to develop a multi-role transport aircraft. “This is something being currently discussed,” Zhukov said.

On construction of more nuclear reactors at Kudankulam, Zhukov said the two counties were discussing the construction of four more units at the site.

Mukherjee expressed satisfaction at the results of the negotiations, saying, “I had a very fruitful meeting with Deputy Prime Minister Zhukov.” He said the two sides held “substantial interaction” in all major areas of bilateral trade and economic relations, in order to give a “quantum increase in trade and economic cooperation”.