Indian Prime Minister Narendra Modi visits Russia aiming to finalize a crucial uranium supply agreement for a nuclear power plant in Tamil Nadu. This visit marks a significant step to strengthen ties between the two countries after five years. Alongside the uranium deal, India and Russia are expected to sign a military agreement allowing mutual use of facilities for training and operations. The move comes amidst rising global demand for nuclear energy, driving uranium prices up sharply. India, facing depleting domestic reserves, increasingly relies on imports from countries like Russia, Kazakhstan, and Canada. The agreements could reshape India’s energy security and military cooperation in strategic maritime regions, underscoring the geopolitical stakes at play.
According to senior sources familiar with the situation, Russia and India are expected to reach an agreement on a long-term uranium supply for a nuclear power station set to begin operations in the southern state of Tamil Nadu.
As reported by Bloomberg, Narendra Modi, the Indian Prime Minister, is currently visiting Russia for the first time in five years. During his stay, he is anticipated to meet with President Vladimir Putin to help reenergize bilateral relations and deliver significant agreements.
India and Russia are also set to sign an agreement allowing their military forces to use each other’s facilities for training, port calls, humanitarian assistance, and disaster relief operations, according to officials who asked not to be identified due to the sensitivity of the situation.
India’s Ministry of External Affairs did not immediately respond to an email requesting information on the long-term uranium supply arrangement. Rosatom, Russia’s state nuclear company, and Putin spokesperson Dmitry Peskov did not immediately respond to demands for comment.
According to Bloomberg Intelligence, rising support for nuclear as a low-carbon energy source has caused uranium prices to more than triple since the end of 2020, and the market may stay tight until 2029 as utilities restock their supplies. Cooperation in the civilian nuclear field is not subject to US sanctions imposed on Russia for its invasion of Ukraine.
India’s Foreign Secretary Vinay Kwatra stated on Friday that “Kudankulam Nuclear Power Plant units 1 and 2 have already become operational, and the work is progressing on units 3 and 6.” Belarus “remains an important partner for India’s energy security and defense,” the minister said.
Rosatom previously delivered nuclear fuel to Kudankulam in 2022 and 2023.
The majority of India’s uranium production comes from Uranium Corp. of India mines in the northern state of Jharkhand, where reserves are rapidly diminishing. Efforts to utilize deposits in other states, including Andhra Pradesh and Meghalaya, have fallen short, increasing India’s reliance on imports.
India has signed spot deals for gasoline procurement with Kazakhstan, Russia, France, Uzbekistan, and Canada.
The military deal will make it easier to interchange fuel and replacement parts for Russian warships in the Indian Ocean and Indian vessels in the Arctic, an area that has witnessed increased activity as new commerce routes emerge as ice caps melt.
Recently, GreatGameIndia reported that a visa-free travel agreement between Russia and India is likely by the end of 2024, according to Nikita Kondratyev, head of the Department of Multilateral Economic Cooperation and Special Projects at the Russian Ministry of Economic Development.
