Modi, Putin sign defence deals ahead of BRICS

BENAULIM, India — Indian Prime Minister Narendra Modi and Russian President Vladimir Putin signed multibillion-dollar energy and defence pacts on Saturday following talks aimed at reinvigorating ties between the traditional allies.

Modi hailed Putin as an "old friend" after their meeting in the Indian state of Goa, where leaders of the other BRICS emerging nations were also gathering for a summit.

"Your leadership has provided stability and substance to our strategic partnership," Modi said alongside Putin at a beachside resort, after officials signed up to 20 agreements between the two nations.

Modi said the pacts on jointly producing light military helicopters, building frigates and other areas of cooperation "lay the foundations for deeper defence and economic ties for years ahead".

They also signed an initial agreement on India's purchase of Russia's state-of-the-art defence system, capable of shooting down multiple incoming missiles, although there were no details on a time frame for delivery.

Putin has been seeking to seal deals with India to help revive Russia's recession-hit economy, following sliding oil prices and Western sanctions over the Ukraine crisis. 

"I would like to stress that we intend to expand our bilateral cooperation not only in energy but also across a wide range of areas," Putin said.

The announced energy deals include Russian oil giant Rosneft's decision to buy almost the entire stake in India's Essar Oil for almost $13 billion.

Essar said the deal involving a group led by Rosneft was the largest single foreign direct investment in India. 

The leaders also signed an agreement to supply more units to a nuclear plant in Kudankulam in southern India to meet the fast-growing economy's thirst for electricity and to reduce its reliance on dirty coal.

Modi also held talks with China's President Xi Jinping late Saturday, in the hope of boosting investment and trade. Relations, however, have been frustrated by Beijing's decision so far to block New Delhi's entry to a nuclear trade group, among other issues.

China and India, the world's two most populous nations, are jockeying for regional influence in Asia. 

Modi will host a dinner for the leaders of the BRICS club — which also includes South Africa and Brazil — ahead of talks on Sunday.

BRICS was formed in 2011 with the aim of using its growing economic and political influence to challenge Western hegemony.