India and Russia on Friday reaffirmed their cooperation in the energy sector with emphasis on civil nuclear energy, critical minerals, and partnership in clean energy.
In the nuclear energy sector, the two countries confirmed their intention to broaden cooperation for life-cycle support to operate Kudankulam Nuclear Power Plant (KKNPP) and non-power applications. They also agreed on an elaborate new agenda of interaction in the field of peaceful use of atomic energy and related high technologies.
What does the joint statement say?
In a joint statement, the two sides noted the importance of further discussion on the second site in India for nuclear power plant (NPP) wherein India will strive to finalise formal allotment of the site in accordance with earlier signed agreements.
“The sides agreed to accelerate technical and commercial discussions on the VVER (a type of pressurised water reactor) of the Russian design, research and joint development of nuclear plants, localization and joint manufacturing of nuclear equipment and fuel assemblies for Russian designed large capacity NPPs subject to terms and conditions as mutually agreeable,” the statement said.
Plan to construct small modular reactors
There is also a plan to cooperate in construction of small modular reactors and floating nuclear plants. Non-energy applications of nuclear technology like medicine and agriculture may also be pursued.
During the 23rd India–Russia Summit, Prime Minister Narendea Modi said that energy security has been a strong and important pillar of the India–Russia partnership. Modi also said that cooperation in critical minerals between the two countries is essential for ensuring a secure and diversified supply chain worldwide.
“This will give solid support to our partnership in clean energy, high-tech manufacturing and new-age industries,” he added. The two sides discussed and commended their wide ranging cooperation in the energy sector as a significant pillar of the Special and Privileged Strategic Partnership.
They noted the current and potential cooperation between Indian and Russian companies in fields such as oil and oil products, oil refining and petrochemical technologies, oilfield services and upstream technologies and related infrastructure, LNG and LPG related infrastructure, various existing projects in their countries, underground coal gasification (UCG) technology, nuclear projects, etc.
The two countries also highlighted the importance of expeditious resolution of issues related to investment projects in this area, and agreed to resolve the various concerns being faced by their investors in the energy sector. Russian President Vladimir Putin also highlighted deepening energy cooperation with India, stating that Russia remains a reliable supplier of oil, gas, and coal to meet India’s growing needs.
“We are ready to continue uninterrupted shipments of fuel for the fast growing Indian economy. Two units of Kudankulam are functional and four are still under construction,” Putin said. The two nations noted the importance of the cooperation in the peaceful uses of nuclear energy as a significant component of the strategic partnership taking into account India’s plans to increase India’s nuclear energy capacity to 100 GW by 2047.
Earlier, the US has imposed steep tariffs on India with an additional penalty for buying Russian oil. Additionally, the US also sanctioned Russia’s largest oil exporters – Rosneft and Lukoil in order to cut Russia’s funding for its conflict against Ukraine.
However, India’s purchases of Russian oil remained strong in November, averaging around 1.8 million barrels per day, five-month high, accounting for more than 35% of India’s total crude import mix, as per data from Kpler.
To build nuclear capacity, the government also plans to open up the sector for private players and has suggested leveraging domestic technology, and foreign partnerships, while calling for urgent reforms in taxation and liability frameworks to accelerate reactor deployment.
The Central Electricity Authority in its nuclear plan has said that ‘working on govt-to-govt agreement (bi-lateral or multilateral) with countries of interest (i.e. having significant uranium Reserve – Australia, Mongolia, Russia) and pursue Nuclear Suppliers Group waiver/ membership will also be of great help in ensuring uninterrupted fuel supply and energy security’.
