"The outlook for our trade and economic relationships is bright and the political recognition to improve the relationship also exists. Even then, our businessmen face a major problem in obtaining Russian visas. This is discouraging many IT companies from seriously looking at opportunities in Russia," said Kanwal Sibal, Indian ambassador to Moscow.
He was speaking at the inaugural session of the "India-Russia Business Partnership 2005, Redefining Horizons", organised by the Confederation of Indian Industry .
"Our efforts to reach a business visa facilitation agreement with Russia are stalled for the time being, though drafts between the two countries have been exchanged, and India is willing to sign an agreement on re-admission," Sibal said.
The bilateral trade between India and Russia stood at $3.15 billion, but there had been a sharp reduction in the exports of tea, tobacco, leather, beef and diamonds, he said.
"Despite the political sensitivities in India connected with the falling tobacco exports, we have not been able to find a solution," he added.
Saying India was keen to invest in energy in Russia, Sibal said, "The big story in India-Russia relationship can be of energy. India has already invested a couple of million dollars in Sakhalin-I. Energy cooperation has been discussed between the top leaderships of the two countries and political signals seem favourable."
ONGC, OVL and GAIL have signed strategic cooperation agreements with Gazprom and Rosnet in Russia, he added. CII and the International Congress of Industrialists and Entrepreneurs also signed a cooperation agreement.
The pact is aimed at developing international economic cooperation, industrial policy and favourable conditions to develop multilateral communication and mutually beneficial relationships between the business communities of the two countries.
