In a move set to bolster India’s energy security, Prime Minister Narendra Modi arrived in Russia for a two-day visit, marking his first trip to the nation in five years. The visit aims to rejuvenate bilateral relations and potentially seal strategic agreements between the two countries.
During the high-stakes talks, Modi is expected to meet with President Vladimir Putin. According to senior officials familiar with the discussions, the two leaders are likely to finalise a long-term uranium supply pact for a nuclear power plant in Tamil Nadu. This agreement is part of broader efforts to enhance cooperation in the civilian nuclear sector, which remains unaffected by US sanctions on Russia due to its conflict with Ukraine.
“Units 1 and 2 of the Kudankulam Nuclear Power Plant are already operational, and work is progressing on units 3 to 6,” stated India’s Foreign Secretary Vinay Kwatra. He emphasised Moscow’s crucial role in supporting India’s energy and defence sectors. Rosatom, Russia’s state nuclear company, has previously supplied nuclear fuel to Kudankulam in 2022 and 2023.
The potential uranium supply deal comes at a time when global uranium prices have surged, tripling since late 2020 due to rising demand for nuclear power as a low-carbon energy source. According to Bloomberg Intelligence, the market is expected to remain tight until 2029 as utilities replenish their inventories.
India’s domestic uranium production is primarily cantered in Jharkhand, but reserves are depleting rapidly. Attempts to tap into deposits in Andhra Pradesh and Meghalaya have fallen short, increasing the nation’s dependency on imported uranium. India currently procures uranium through spot deals with countries including Kazakhstan, Russia, France, Uzbekistan, and Canada.
Additionally, Modi and Putin are anticipated to sign a significant military agreement allowing both countries to utilise each other’s facilities for training, port calls, and humanitarian assistance and disaster relief operations. This agreement will enhance the exchange of fuel and spare parts for Russian warships in the Indian Ocean and Indian vessels in the Arctic, a region witnessing heightened activity due to melting ice caps and emerging shipping routes.
