NEW DELHI: Prime Minister Narendra Modi on Wednesday visited Russia's far-east city of Vladivostok, a first by an Indian head of state, to participate in the Eastern Economic Forum and hold bilateral discussion with Vladimir Putin. Later, the Prime Minister accompanied the Russian president to the Zvezda ship-building complex.

For long, the focus of Russian economic and political development was the nation's European side, home to cities Moscow and St Petersburg. But amidst the stagnation of the European economy and the rise of East, Putin has increased his focus on the far-east. The Far Eastern Federal District, which is twice the size of India, is rich in resources but has a population of merely 8 million. It is also vastly underdeveloped. Thus Russia needs the help of Asian countries. Putin wants to avoid overdependence on Beijing. Hence, Russia is keen to bring investors other than China into its Pacific region.

Ample opportunites for India in Russi's far-east

The resource-rich region provides ample opportunities for India, an energy-hungry nation. India could also provide Russia with much-needed labour for projects in the sparsely populated region. By investing in far-east, Indian companies also get access to a market where it doesn't compete with Western firms. Both the countries are also looking at opportunities to explore hydrocarbons on the continental shelf in the Arctic and the Russian far-east together.

The push in far-east is also an attempt by Moscow to consolidate its clout in the Pacific region. The interest of both New Delhi and Moscow align in the matter of Asia-Pacific security. India is a strong power in the Indian Ocean with a serious interest in the Pacific Ocean, Russia is a strong Pacific power with an interest in the Indian Ocean," foreign minister S Jaishankar said.

The bilateral relations between Moscow and New Delhi

The Modi-Putin meeting will be the 20th annual bilateral summit between the nations. The two leaders are expected to sign deals on defence, trade, energy as well as industrial cooperation.

Politically, there are no disagreements between Russia and India, so the discussions between the two strategic partners are likely to focus on economic matters. Both the countries, with bilateral trade ties amounting to $11 billion, are likely to focus on increasing mutual investments and cooperation in the energy sector.

That India has gone ahead with the purchase of S-400 missile defence system, for over $5 billion, against US wishes, underlines the strength of the ties.

Russia and India in 2015 signed a $1 billion agreement to jointly make Kamov Ka-226 military helicopters, part of the "Make in India" initiative. However, the deal has been pushed back repeatedly. India in March launched a joint venture with Russia to manufacture AK-203 assault rifles. Both these agreements are likely to get the much-needed boost during the bilateral talks between the two leaders.

Modi and Putin are expected to discuss a proposal to establish a free trade zone between India and the Eurasian Economic Union (EAEU), a five-nation grouping, comprising Russia, Kazakhstan, Kyrgyzstan, Armenia and Belarus, formed in 2015 to create conditions for the stable development of economies of the member states. Talks have been concluded on this proposal which is expected to give a fillip to the economic ties between India and the Eurasian region.

The issue of tension between India and Pakistan over Jammu and Kashmir may also figure in the talks

The Eastern Economic Forum

The three-day Eastern Economic Forum (EEF) to be held here from September 4 will see over 70 business events, focusing on ways to expand international cooperation in the Asia-Pacific region and developing the economy in Russias Far East.

PM Modi will be the Chief Guest at the Forum, which will also see participation from a number of other countries at ministerial level, including China, South Korea, North Korea, Singapore and Indonesia.

In Video: PM Narendra Modi and President Vladimir Putin on the way to Zvezda shipyard