Good Afternoon!

Firstly, I congratulate the organizers namely the Northern Forum and Vivekananda International Foundation (VIF) for hosting the inaugural conference on the Russian Far East and Arctic. It’s my great pleasure to participate in the special session of this conference. The agenda is comprehensive and covers trade, connectivity projects, scientific cooperation in the Russian Far East and Arctic. This truly reflects the comprehensive cooperation between our two countries.

Our ‘Special and Privileged Strategic Partnership’ has been growing steadily under the leadership of Prime Minister Modi and President Putin. Our Prime Minister visited Russia twice last year, to participate in the 22nd Annual Summit in July and in the BRICS Summit in October. We look forward to President Putin’s visit to India later this year. The frequency of these visits highlights the importance we attach to our partnership.

In 2023-24, our bilateral trade reached USD 65.7 billion with Indian exports totaling USD 4.26 billion. For 2024-25, the trade is expected to cross USD 66 billion, showing a fivefold increase in last five years. However, the bilateral trade remains very skewed in favor of Russia. To address this, last year we signed nine MoUs/agreements covering diverse fields of economic engagement. We now target USD 100 billion for bilateral trade turnover including through increased Indian exports by 2030.

We have been actively promoting economic cooperation by organizing numerous buyer-seller meets. Last year, we organized the first-ever India-Russia Investment Forum. These initiatives have received positive feedback, and increased India’s exports in areas such as auto components, electronics, medical devices, textiles, and agricultural products. We firmly believe that addressing the trade imbalance requires tackling market access restrictions, non-tariff barriers, payment issues, and logistical challenges through mutual understanding and collaborative efforts.

Friends,

Our PM outlined India’s Act Far East policy in 2019 which guides our cooperation with Russia in this region. Since 2019, several positive developments have taken place – for e.g. development of new transport corridors like the Northern Sea Route (NSR) and Eastern Maritime Corridor (EMC), training of Indian seafarers for Polar Operations in Russian Far East universities and growing partnership between our companies in the region.

Russian Far East and Arctic could play an important role in diversifying our relations in trade, connectivity, resources and other strategic areas. A key achievement in this regard was last year the signing of an MoU for cooperation in trade, economic and investment spheres in the Russian Far East and Arctic for 2024-2029. Subsequently, a joint working group was setup for joint projects in Arctic and Far East. Its meeting was held last November in New Delhi.

We believe that strengthening economic cooperation in Far East is a realistic goal by virtue of complementary nature of our economies. The vast Oil and Coal reserves in the Russian Far East present alternatives to India in diversifying its requirements. We already know that ONGC Videsh has 20% stake in Sakhalin-1 project which produces 140-150 thousand barrels per day. Similarly, Indian companies can explore opportunities to undertake joint ventures in Coal and Oil reserves in the Russian Far East and Arctic.

Russia is implementing large scale infrastructure projects in Far East region under its National Transport Project and Development plan for Northern Sea Route. There are new requirements for skilled manpower for these projects. India has the largest skilled workforce in the world. Both the sides could explore opportunities to employ the young, skilled and hardworking Indians in these infrastructure projects.

Furthermore, India can play a multifaceted role in Arctic, focusing on scientific research, environmental protection, economic development, and international cooperation. At last year’s annual summit, an MoU was signed between National Centre for Polar and Ocean Research, Ministry of Earth Sciences of India and the Arctic and Antarctic Research Institute on Cooperation in Research and Logistics in polar regions of Russia. The MoU focuses on joint research, and cooperation in polar logistics and exchanges of personnel. Last November, we also operationalized Eastern Maritime Corridor, carrying shipments of crude oil, metal and textiles, and reducing transit time from 45 days to 25 days.

In conclusion, I would say that the growing cooperation between India and Russia in Far East and Arctic underscores a broader shift towards Act East, with both countries seeking to leverage their partnership for strategic and economic gains. The cooperation is mutually beneficial as it presents India opportunities to diversify its requirements and engage in infrastructure and mining projects in Arctic and Russia in effectively developing the Northern Sea Route and the Far East region. I hope that your deliberations today will contribute to this cooperation.

Thank you.