India Looking for Favourable terms with Russia for Nuclear Energy

Indian Prime Minister Narendra Modi arrived in Russia for a visit on Monday and Tuesday, marking his first visit in five years. During this visit, Modi is expected to hold talks with President Vladimir Putin to rejuvenate the relations between the two nations and potentially finalize strategic deals. A significant outcome of the visit is likely to be a long-term uranium supply agreement for a nuclear power plant in Tamil Nadu, as reported by senior officials. This deal will further India's nuclear energy capabilities, crucial for its growing energy needs.

Additionally, India and Russia are expected to sign an agreement allowing their military forces to use each other’s facilities for training, port calls, humanitarian assistance and disaster relief operations. This agreement underscores the strengthening of defense ties between the two countries.

India’s Ministry of External Affairs has not yet provided details on the uranium supply agreement. Similarly, Russia’s state nuclear company, Rosatom and Putin’s spokesman, Dmitry Peskov, have not commented on the matter.

The increasing support for nuclear power as a low-carbon energy source has led to a significant rise in uranium prices since the end of 2020. According to Bloomberg Intelligence, the market is expected to remain tight until 2029 as utilities replenish their inventories. Notably, civilian nuclear cooperation is not subject to US sanctions on Russia due to its invasion of Ukraine.

India’s Foreign Secretary Vinay Kwatra highlighted the progress on the Kudankulam Nuclear Power Plant, with units 1 and 2 already operational and work ongoing on units 3 to 6. He emphasized Russia's importance to India's energy security and defense.

Rosatom has previously supplied nuclear fuel to Kudankulam in 2022 and 2023. Given India's depleting uranium reserves in Jharkhand and unfulfilled expectations from deposits in Andhra Pradesh and Meghalaya, the country is increasingly relying on imports to meet its nuclear fuel requirements.