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INDO-RUSSIAN WORKING GROUP MEET ON TRADE AND ECONOMIC COOPERATION BEGINS

        In his opening remarks, Shri Chatterjee recalled the Declaration on Strategic Partnership signed by Prime Minister Vajpayee and President Putin in October 2000 laying emphasis on economic and commercial relations between India and the Russian Federation and said that the current Session of the Working Group assumed greater urgency and importance against this backdrop as a forum for providing a firm underpinning to the excellent political relations between the two countries. Taking note of the decline in bilateral trade, including the drop in the offtake of tea and tobacco by Russian importers, he said urgent steps were needed to reverse this trend. The Tea Board of India had been interacting with Roschaicofe and a similar arrangement could be worked out with the Tobacco Board, the Commerce Secretary said. He also urged the Russian side for headway in implementing the proposal for Indo-Russian cooperation in the area of processing and trade of rough diamonds, the Protocol for which was signed during President Putin’s visit, as this would be of mutual benefit and could lead to a marked increase in the bilateral trade turnover. Taking up the issue of the pending claims of Indian exporters including those of the Shipping Corporation of India, State Trading Corporation and the Steel Authority of India, Shri Chatterjee requested the Russian side to settle these claims expeditiously. Mr. Egonovich on his part spoke of the prospects of enhancing bilateral trade and economic cooperation, while noting the positive work done by the sub-group on banking and financial matters. Keeping in view that rupee debt repayments were nearing completion, both sides stressed the need for continued inter bank cooperation as a means of improving trade. Shri Chatterjee also suggested reorientation of the role of the Working Group, given the changed business environment in India as well as Russia and with rupee repayments nearing completion so that it could come up with practical proposals for expanding and deepening trade and economic ties. Shri L.V. Saptharishi, Additional Secretary, Shri S. S. Kapoor, Joint Secretary, Ministry of Commerce and Industry and other senior officials participated along with Shri S.D. Kapoor, Chairman and Managing Director, MMTC Ltd., Shri S.M. Dewan, Chairman, STC and senior representatives of RBI, EXIM Bank, ECGC etc. The Russian delegation included several representatives of Russian banks as well as Russian trade representatives.

        Referring to the issue of declaration of the Russian Federation as a non-market economy, the Commerce Secretary mentioned that a revised notification had been issued which applied uniformly to all countries and was of a generic nature (wherein no country was specifically named for being classified as a non- market economy). Responding to Russia’s concerns on anti-dumping issues, he said there should be regular informal consultations based on the mutually agreed line of action in such matters.

        Trade between India and Russia stood at Rs 6399.11 crore in 2000-2001 as against Rs. 6807.66 crore in 1999-2000. India’s exports to Russia were valued at Rs. 4054.65 crore and imports from Russia were Rs. 2344.46 crore during 2000-2001 as against Rs. 4107.23 crore and Rs. 2700.43 crore respectively in 1999-2000. The Protocol of the Working Group Session will be signed here tomorrow.