Mumbai: Russia has agreed to use the $1 billion
rupee debt that India owes for financing investments
in this country. The two countries would identify specific
projects that would benefit from the arrangement at
a later date, commerce and industry minister Kamal Nath
"Both sides have agreed on the broad principles
of using the debt that India owes to Russia. The funds
would now be invested as Russian equity in projects
in India that would be set up in partnership between
the entities of both countries," the minister told
the concluding session of the first India-Russia Forum
on Trade and Investment.
both sides have already decided in-principle to invest
the money in India, differences over the projects that
could be funded was delaying its implementation. The
deal was finalised by agreeing to identify the projects
deal will provide a big boost to economic relations
between the two countries that have been languishing
since the fall of the Soviet Union. Russia has so far
invested $94 million in India and with this agreement
another $1 billion will be available for Russian entities
to invest in India.
give a boost to economic ties, both countries have agreed
to work towards a comprehensive economic partnership
agreement (CEPA) with a joint study group examining
the issue involved.
"During the two-day meeting of the forum, both
sides also agreed on a protocol to boost bilateral trade
and investment and identified sectors for boosting trade."
between two countries currently stands at $2.6 billion
India''s exports are $729 million dollars. Earlier, Soviet
Union used to account for nearly a quarter of India''s