'Koodumkulam Forced The US Into The N-Deal'

Is the love affair between India and Russia over?

You call it a love affair; I'd like to characterize the relationship as aStrategic Partnership. A love affair has its start and its end. But relationsbetween two countries is a long and interactive process. As it is said, thereare no permanent friends and no permanent foes in international relations, butonly permanent interests. Relations between India and Russia are permanentbecause their interests are also permanent. Of course, time changes, we comeacross new friends or new foes. Both Russia and India want to win over newfriends, but not at the expense of trusted and old friends.

But the Indo-Russian relationship is no longer heard in the politicaldiscourse?

This is the result of the globalization process. It's not something onlyabout India and Russia. Of course, the name of the US is heard every day, everyhour. But it's closely connected to practical solutions to practical problemsthat exist between India and the international community -- and also betweenIndia and the US. The nuclear deal was not just between India and the US. It wasa deal between India and the international community, between India and theInternational Atomic Energy Agency, between India and the Nuclear SuppliersGroup (NSG). There's nothing wrong that we don't frequently hear the slogan of'Hindi-Russi bhai bhai.' It doesn't change the essence of our relationship. Theessence is the same: it's difficult and almost impossible to imagine India withsome new friends -- but without Russia.

Do the growing Indo-US ties bother Russia?

We are too secure a nation to worry about something that doesn'tthreaten our national interest. I don't see any threat in the developing Indo-USties. We have nothing to worry about as long as India's foreign policy remainsbased on the same principles as before.

But are Indo-US ties growing at the cost of others?

I'm yet to face any encroachment on our ties or an attempt to elbow us out asa supplier of something to India. What's definitely a new phenomenon is therising competitiveness of the Indian market. Decades earlier, India didn't havetoo many alternatives except working together with Russia. And Russia workedwholeheartedly with India in building its heavy machinery and its steelindustry. The initial stages of the Indian space research was without doubt dueto our participation. In the field of military cooperation, India was searchingfor friends. Only Russia was prepared to build India's military might -- on thebasis of government credit, not hard currency that India lacked then. Later, bybuying back Indian traditional goods, we also assisted India to get access tointernational markets. All this became the basis of today's India.

Is it a good thing for Russia that India has so many options today?

It's price and quality that will play an important role in the Indian market.Until now, Russia as a supplier has been enjoying this leading role. Our pricesare optimal, and in the military, nuclear and space research fields, this isrecognized perfectly well.

India has been looking at sources other than Russia for defence supplies.Will Russia look for other markets -- say, Pakistan?

Even now we have a lot of customers besides India. With India, it's adifferent story. We have already reached the stage of joint designs, jointproduction and joint marketing in third countries of military goods and hardwarethat we have produced together. The best example of this is Brahmos. We are nowthinking of Brahmos II. We are also working on the joint production ofinterceptor fighter aircraft -- fifth generation. With other countries, ourrelationship is different. As far as I know, this kind of relationship doesn'texist between India and other countries.

Is India's sensitivity the reason why Russia hasn't really looked uponPakistan as a market?

This isn't at India's behest. Undoubtedly, we have to keep in mind ourstrategic cooperation with India. We will also have to keep in mind the long andchequered history of our relations with Pakistan, specifically when our forceswere in Afghanistan. But we will have to take into account the internalsituation in Pakistan. The Americans are worried about the security of thenuclear devices in Pakistan. We don't want to be in the same shoes. We don'twant to worry about how our military hardware is exploited by some extremistforces. In any case, from both the economic and strategic point of view,Pakistan isn't a country of our preference. Also, I don't think Pakistan is keento have well developed relation with us in this field. Let's not forget theirvery deep and close military ties with the US.

But what about Indo-Russia economic cooperation?

It's a new situation -- our economy is a market economy and India's is aliberalized market economy. For us, it's a very happy thing that due to theircultures and economic policies, both countries are less negatively influenced bythe financial crisis. The US is on the other side--it is the origin of thecrisis. It's very positive that India is not directly linked with the dollar butwith a basket of currencies. This has minimized the impact of the dollar'stragic fall. India takes care of its internal markets very well. Indianeconomists, though they are supporters of market economy, say that the veryexistence of public sector has helped us to battle pressure from outside.

Are you worried that the biggest share of India's nuclear and defencemarket could go to the US because of its key role in breaking the nuclearapartheid for Delhi?

I don't think the US played a key role in this. It had to play a very activerole because they were the architects of these sanctions (against India). It isonly natural. But without the cooperation between India and Russia to constructnuclear energy plants in Koodamkulam, it would have taken decades to lift thesesanctions. The very existence of our cooperation pushed the US towards thedissolution of the sanctions.

So, Russia was a catalyst?

Russia was the only country that supported India, not only in words but indeeds -- for instance, supplying the Tarapore reactor with fuel. The Americanswon't find it easy to enter the Indian market, because it did not construct asingle plant in the last 25 years. Also, keep in mind the ratio between qualityand price. The price that the Americans will ask for is not going to be verylow. Without Russia lobbying with other countries, the NSG's decision would havebeen a little different.

But you are worried, aren't you?

I do not have worries, I deal with situations. Russia will have its own nicheand no one will be able to take that away from us. In other areas, we willcomplete with France and other countries. We are used to it. Our MiGs and theFrench Mirage competed successfully. The aircraft constructed in Russia isconstructed keeping in mind the pilot's convenience. Those of the west requirethe pilot to adjust to the aircraft.

Is the Gorshkov deal a done deal?

The deal is under review because between the time the contract was signed andnow, there's a new economic situation, price-wise. The ongoing review willprovide a positive solution that will be acceptable to both sides. I think theGorshkov deal will be based on a pucca outlook of what India wants from thisaircraft carrier.

Is there a timeframe to complete review?

The reassessment requires time and sober approach towards the decision makingprocess. We might see something unique out of this process or something thatwill be optimum and which will satisfy the medium range needs of the Indiannavy. India has to have a ship of this category. We definitely understand thestrategic necessity of India to have such a ship. Though India is now planningon building an indigenous carrier and that is why they have ordered for specialtype of aircrafts that will suit smaller type of aircraft carrier. BecauseGorshkov may be supplied with readymade aircrafts. But India needs smalleraircrafts that can get under the deck.

Will the Indo-Russia N-agreement be signed during President Medvedev'svisit?

I'm sure it will be signed.

Will it also cover cooperation on enrichment and reprocessing?

I am not sure. If India needs something, we are willing to look into it. anddecide. We are for full-fledged cooperation with India. Unlike other countries,we don't wish to impose any kind of limitation on India. It has an immaculaterecord on non-proliferation. We have nothing to worry about. Our decision tohelp Tarapore with nuclear fuel was proof of our preparedness to help India outfrom any difficult situation.