Vladivostok Sea Route- Countering China’S OBOR (Important) (Download PDF)

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With Chennai-Vladivostok sea route, India is planning to connect Chennai with key Russian port Vladivostok via sea route to harness natural resources from Northeast Asia and Western Pacific region.

Vladivostok Sea Route- Countering China՚s OBOR

Importance of Chennai-Vladivostok Sea Route

  • Reduces transfer time of cargo between Chennai and Vladivostok to 24 days from 40 days taken from India to Far East Russia via Europe.
  • Can be transformed into corridor juxtaposing Indo-Japan Pacific to Indian Ocean Corridor countering China՚s Maritime Silk Route (MSR) under Border Road Initiative (BRI) , which connects entire South East Asia through road, shipping, and rail links.

International Play

  • Russia sensitive to growing Chinese presence in Russia՚s Far-eastern region especially with population from China increasing in the region resulting in changing demographics.
  • Presence of India will balance the Chinese presence.
  • Indian is very wary of growing Chinese presence in the South East regions and in Europe. The OBOR has potential to bring significant trade benefits to Chine at the cost of India.

Importance of Far Eastern Federal District (Vladivostok)

  • Far Eastern Federal District is twice the size of India and is largest and least populated of the eight federal districts of Russia
  • Vladivostok region has wealth of natural resources such as timber, mineral resources (coal & diamonds) , precious metal deposits (gold, platinum, tin, and tungsten) and oil and natural gas.
  • Russia announced several initiatives to attract investments in the region, including an agricultural SEZ, the Vladivostok Free Port Project.

India in Vladivostok

  • India first country to establish resident Consulate in Vladivostok in 1992.
  • However current engagement limited to isolated pockets such as Irkut Corporation in Irkutsk where Mig and Sukhoi aircraft are built
  • ONGC Visesh Limited has over $ 6 billion investments in Sakhalin.
  • Indian companies will find opportunities include in such sectors as agriculture, mining, port development and infrastructure, diamond processing, agro-processing.

India- Russia Relations Evolution

  • Few months back Russia announced visa-free entry for Indians in its Far East.
  • India launched Russia Desk for facilitating Russian investments into India- 3rd such “Desk” in India after Japan and Korea.
  • “Russia Desk” will provide complete support service for any kind of Russian investment from legislative to taxation
  • Russia also invited participation from India in the Far Eastern Federal District

- Published/Last Modified on: October 10, 2017

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