Most of these investments have been in Rosneft-controlled Siberian oil fields by Indian state-owned companies. In turn, the biggest-ever inflow of foreign direct investment in India was conducted by Rosneft and its partners after beating rivals from Saudi Arabia and Iran.
Making the formal announcement at last month’s India-Russia summit in Goa, Indian Prime Minister Narendra Modi and Russian President Vladimir Putin also mooted the idea of what could emerge as the jewel in the India-Russia energy ties — a direct natural gas pipeline between the two countries. Modi said in a press statement that the two countries are undertaking a joint study of a gas pipeline.
But given the parlous state of India-Pakistan ties, Russia will have to take the lead in engaging Pakistan, the other transit country for the Indo-Russia gas pipeline. Maintaining security in the region is also essential for a free trade agreement between the Eurasian Economic Community and India, as it will open up more surface routes.
The oil pipeline will become a necessity once Indian companies create their own resource base in Russia as it is the best method of delivery of energy resources to the Indian subcontinent.