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Russia to fix rough diamond quota for India next month: Sinha

Russia is to fix India's quota of rough diamonds next month, Finance Minister Yashwant Sinha said in Moscow.

Sinha is on a two-day visit to Moscow to co-chair the Indo-Russian Inter-Governmental Commission on trade, economic, scientific and technical cooperation (IRIGC).

He told reporters after his meeting with Russian Prime Minister Mikhail Kasyanov, on Monday, that processing of rough Russian diamonds was a "new and promising" sector in bilateral trade.

He, however, declined to divulge details of the diamond deal referring to its sensitive nature. Earlier, Russian co-chairman of IRIGC, Deputy Prime Minister Iliya Klebanov had said it would be a partnership of the world's largest producer of rough diamonds and the world's largest producer of polished diamonds.

Indo-Russian cooperation in hydrocarbons, including the Gazprom-Gail tie-up for exploring a bloc in Bay of Bengal and acquisition of 20 per cent equity of Rosneft in Sakhalin-1 offshore oilfield by ONGC-Videsh Limited, were also discussed.

Kasyanov agreed to prepare the ground for switching over to convertible currency in bilateral trade.

"The old debt repayment rupee funds, instead of becoming a floor for the trade have become a ceiling," Sinha said.

Under a deal signed with Russia in 1993, India is repaying Rs 3,000 crores annually till 2004 to Moscow for buying items like tea, tobacco, spices and pharmaceuticals. Sinha also offered Indian computers for Russia's ambitious programme of computerising schools in the country.

A Russian trade and industry delegation is to visit India in April. Moscow is also planning to hold technology expositions in India this year to expand bilateral trade.

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