VZCZCXYZ0002
PP RUEHWEB

DE RUEHMO #5512/01 3300758
ZNR UUUUU ZZH
P 260758Z NOV 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 5424
INFO RUEHXD/MOSCOW POLITICAL COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 4325
RUEHIL/AMEMBASSY ISLAMABAD 2366
RUEHNE/AMEMBASSY NEW DELHI 1137

UNCLAS MOSCOW 005512 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
C O R R E C T E D  C O P Y  (Adding caption) 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECIN ENRG MASS IN RS
SUBJECT: RUSSIA AND INDIA SEEK TO IMPROVE ECONOMIC TIES; 
SECURITY COOPERATION LIMITED 
 
REF: MOSCOW 5435 
 
¶1. (SBU) Summary:  In official briefings on Indian Prime 
Minister Singh's November 11-12 visit, Russian and Indian 
diplomats confirmed reftel assessment of bilateral relations 
as politically healthy but in danger of appearing "emaciated" 
should the countries fail to expand economic ties.  The 
diplomats candidly portrayed Russia-India trade as dependent 
on military sales and said both sides sought to remove 
barriers to trade and establish mechanisms to promote 
investment.  No date was set for signing a delayed agreement 
for Russia to provide India with four additional nuclear 
reactors, but the Indians assured the GOR it would be signed. 
 Indian diplomats told us PM Singh invited Putin to India in 
2008 and said India prefers Putin remain Russian President 
for a third term.  India would like to join the Shanghai 
Cooperation Organization (SCO), but will remain an observer 
for the near future.  End summary. 
 
Indians Praise Putin for Reviving Ties 
-------------------------------------- 
 
¶2. (SBU) During separate briefings held for the diplomatic 
corps the week of November 19, the MFA and Indian Embassy 
provided additional details on PM Singh's November 11-12 
Moscow visit.  In contrast with an earlier MFA assessment of 
the "modest" visit (reftel), the Indians were more effusive 
in proclaiming Singh's trip a success.  Indian Embassy 
Counselor Ramesh Chandra said the annual summits, begun in 
2000, are a sign of a relationship brought to "new heights" 
under Putin after ties waned following the collapse of the 
USSR. 
 
¶3. (SBU) Chandra noted that PM Singh invited Putin to India 
in 2008 to inaugurate the "Year of Russia" in India, a major 
cultural exchange that will be followed by the "Year of 
India" in Russia in 2009.  When Putin declined the 
invitation, citing upcoming Presidential elections, Singh 
responded that India would like to see Putin remain for a 
third term. 
 
Relations Politically Healthy, Economically "Emaciated" 
--------------------------------------------- ---------- 
 
¶4. (SBU) Diplomats described Russia-India relations as 
politically healthy but lacking in economic and trade ties. 
MFA India Desk Chief Aleksandr Hozin said that the current 
low level of trade between Russia and India was a "sensitive" 
issue for the GOR and the expansion of economic ties is a top 
priority.  Chandra said Russia and India enjoy strong 
political relations that have not translated into "equitable" 
business ties.  He warned that failure to expand economic 
ties would make the relationship appear increasingly 
"emaciated" as Indian trade with other international partners 
increase. 
 
¶5. (SBU) Economics and trade were a focus of the Singh visit, 
during which the GOR and GOI agreed to establish a joint 
working group on expanding trade that would seek to remove 
barriers such as tariffs and incompatibility between the 
Russian and Indian banking sectors.  Russia and India will 
also explore establishing a center based in Moscow to promote 
the transfer of new technology to compliment three high-tech 
development centers already set to open in India and Russia 
(reftel).  The Russians and Indians agreed, however, that 
expanding trade needed to go beyond intergovernmental efforts 
and would depend on the private sector. 
 
No Timeline for Russia-India Nuclear Agreement 
--------------------------------------------- - 
 
¶6. (SBU) Hozin expanded on his earlier remarks on the 
Russia-India nuclear agreement (reftel), which he said was 
finalized and simply awaiting signature.  No timeline was 
set, but Singh had given his "assurance" the agreement would 
eventually be completed.  Hozin said "no direct link" was 
made between the Russia-India nuclear agreement and the 
U.S.-India 123 Agreement, although Russia did ask India to 
negotiate with the IAEA to reach a safeguards agreement that 
would allow Russia to sell India the four reactors.  The GOR 
predicted that the process would not be easy but nuclear 
restrictions on India would ultimately be lifted.  Hozin said 
the GOR "felt strongly" that India had met its "international 
obligations" to protect its civilian nuclear program and keep 
it separate from its military program. 
 
Limited Security Cooperation 
---------------------------- 
 
¶7. (SBU) In their briefings, Russian and Indian diplomats 
explained how defense cooperation had evolved from a simple 
seller-buyer relationship to one in which Russia and India 
worked on joint military production projects (reftel). 
Defense cooperation did not translate into security 
cooperation, which remained limited.  Putin and Singh agreed 
the Russia-India Joint Working Group on Terrorism, which 
Hozin termed as not more than a forum for exchanging 
information, would go from annual to biannual meetings. 
 
¶8. (SBU) During their meeting, Singh told Putin India placed 
great importance on trilateral Russia-India-China relations 
and would like "enhanced participation" in the SCO.  The GOR 
supports no SCO enlargement at this point and offered an 
increased Indian role in the SCO's economic and energy 
activities. 
 
BURNS