MOSCOW, February 25. /TASS/. Russia and India have great prospects in exploring and producing liquefied natural gas (LNG), as well as developing its infrastructure, said a report by the Valdai International discussion club Russia-India: A Formula for Economic Cooperation.
"Among the potential cooperation areas between Russia and India, one of the most promising is the LNG sector. This should include not only direct shipments, but also the entire scope of cooperation - from exploration and production, participation in Russian assets to joint construction of gas transportation, gas distribution and production infrastructure," the report prepared by Lidia Kulik, Candidate of Historical Sciences, Senior Researcher at the Center for Indian Studies at the Institute of Oriental Studies of the Russian Academy of Sciences, said.
The report noted that "although the work on the development of the industry has slowed down, it is continuing, since this area is strategic and a priority for Russia."
"Negotiations with Indian investors and buyers are ongoing. Cooperation between the two countries across the entire LNG production chain will help ensure not only consistent supplies, but also the price advantage India needs," the expert said.
Mutual trade turnover
The report lists the main areas, where Moscow and New Delhi continue to work actively — nuclear energy, supplies of coal, oil and fertilizers, and development of the Arctic.
On the one hand, Kulik notes that "it is important for Russia to establish a strong position in the promising Indian energy market," since both New Delhi and Moscow would like supplies to be reliable and predictable. The Indian market will play a significant role for the Russian coal mining industry.
On the other hand, the expert points out, India's exports to Russia can also be significantly expanded "thanks to modern industrial equipment, products from the oil refining, mining, chemical and food industries" and other goods.
The report highlights the opportunities for cooperation and complementarity between Russia and India in the agro-industrial sector.
"It is especially important to conclude a free trade agreement between the Eurasian Economic Union and India as soon as possible, which should be the result of mutual compromises in tariff barriers and a detailed dialogue with the business of the two countries," the report said.
Finance and logistics
Separately, the report focuses on the economic and financial ties between the two countries.
"The development of domestic and international transport corridors has become a key area of the Russian government's work over the past 2 years and occupies an important place in negotiations with India," Kulik said, citing work on the North-South international transport corridor as an example.
The report also notes the successful transition of Moscow and New Delhi to direct settlements in national currencies, "which quickly became a familiar mechanism for companies in the two countries."
"Today, they account for almost 90% of payments between India and Russia," Kulik said.
As solutions that could stimulate further growth of economic ties between the two countries, the expert mentioned boosting mutual investments in Russian and Indian companies, expanding air links, increasing the flow of migrant workers, as well as the growth of tourism.
"Cooperation between the two countries has a solid foundation, and much has been done recently to ensure that the interaction evolves into a qualitatively new content, receives regulatory and institutional support. But more needs to be done," the report concludes.