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RUSSIA : DEAL

Resurgence

 

Russia now seeks to widen influence in Indo-China
SAURABH KUMAR SHAHI | Issue Dated: September 23, 2007
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Resurgence After successfully bullying nations in the Baltic region, Balkans and Caucasus and bringing them back to its sphere of influence, Putin’s Russia is now trying to assert itself in the Indo-China region. The presidents of Russia and Indonesia have signed a $1.2 billion deal that enables Indonesia to buy Russian military hardware. The deal is part of a package of memorandums of understanding including trade, energy and space exploration cooperation. A $1.2 billion Russian loan to Indonesia is to be spent on Russian military equipment including 22 Russian helicopters, 20 tanks and two Kilo-Class submarines. Indonesia has plans to buy up to eight more of the conventionally powered submarines. On the other hand, the space exploration deal involves enabling Russia to develop facilities and to launch satellites from the Indonesian launching range at Biak, situated off the Papuan coast.

The deal has attracted sharp reactions from the international community. Australia and Japan have expressed “grave” concern over the deal. Concerns are raised over the purchase of Kilo-Class submarines that are broadly comparable with Australia’s Collins class boats, which, in the words of Australian security expert Carl Thayer, “could require any Australian surface ship to sail with anti-submarine protection.” Some of the concerns expressed are genuine as Indonesia sits astride one of Asia’s most vital strategic shipping routes, the Strait of Malacca. More than 28% of all global oil shipments pass through this strait, including most of the imports of Japan and South Korea.

Reacting to TSI, noted arms expert Alexei Makarkin, from the Centre for Political Technologies in Moscow, said: “The deals are part of a Kremlin strategy to expand its influence in Asia and the Middle East. Russia is trying to pursue a multi-polar policy in the world and considers itself to be one of its poles.” This year, Putin signed a $200 billion, seven-year rearmament plan for Russia’s military. The package includes money for the Pacific Fleet, a major Pacific submarine base and new land- and sea-based intercontinental missiles. Indeed, Mr. Putin wants to reclaim some of the glory that USSR once possessed.
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Issue Dated: Feb 5, 2017