Russia Plans To Divert Funds From Europe To India

Discussion in 'Economy & Infrastructure' started by AVERAGE INDIAN, Jun 11, 2014.



    Sep 22, 2012
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    Detroit MI
    Russian Deputy Prime Minister Dmitry Rogozin on Monday confirmed his visit to the South Asian country in third week of June, saying that he would offer investments to India for projects and joint ventures during the trip. In Moscow, Rogozin told the press that Kremlin decided to shift funds from Europe to South Asia after the Ukraine crisis. He also expressed hope that the first high profile engagement with strategic ally India since the change in guard in New Delhi would certainly boost the bilateral relations.

    He made the comment a couple of days after India said that it was closely watching Moscow’s move to lift its long-standing, self-imposed embargo on weapons deliveries to Pakistan. As Russia decided to supply Islamabad with attack helicopters, ‘concerned’ India stressed that it was trying to understand the changing geo-political situation in the region. Rogozin also said that he would pick up from where he had left during his last visit to New Delhi in February 2013.

    According to the Russian minister, he will discuss a number of important bilateral issues, such as hydrocarbon exports, stronger defence ties and expansion of nuclear power projects, during his meeting with the Indian PM Narendra Modi, External Affairs Minister Sushma Swaraj, Finance and Defence Minister Arun Jaitley and National Security Adviser Ajit Doval on June 18. Rogozin further said President Vladimir Putin would meet Modi in Brazil on the sidelines of the BRICS Summit in July.

    Commenting on the agenda of Putin-Modi meet, Rogozin said that the Russian president would inform the Indian premier about Moscow’s plan to work jointly with New Delhi on changing the bilateral investment treaty in an attempt to encourage and safeguard mutual investments. According to him, Russia is also planning to set up an oil pipeline to India to meet New Delhi’s growing demand for energy. The deputy PM stressed that energy would be the pillar of bilateral partnership in the future and Moscow would build additional nuclear power plants in different Indian cities, if India agreed.

    Meanwhile, the Indian foreign policy experts are of the opinion that the deterioration in ties between Russia and other European countries in the backdrop on Ukrainian crisis has forced Moscow to divert some of its funds from Europe. They believe India will have no problem in accepting the Russian offer in this regard because the fund will strengthen the Indian economy. According to them, economic diplomacy will be the major point of Kremlin’s engagement with the Modi administration.

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  3. pmaitra

    pmaitra Moderator Moderator

    Mar 10, 2009
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    EST, USA
    I have a feeling that Russia seriously wants to re-start the Rupee-Rouble trade. In that case, Reserve Bank of India needs to be reined in. In its effort to boost exports, at the behest of Indian MNCs, they are inflating the currency at a berserk pace. This needs to stop.

    On the other hand, once the BRICS Banks comes up, and BRICS' economies are tied up with SDRs, there will be more stability in India.
  4. arnabmit

    arnabmit Homo Communis Indus Senior Member

    Dec 25, 2012
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    :D You are kinda saying the same thing as Subramanian Swamy. He says Raghuram is trying to cure the fever by killing the patient.


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