Russian President Vladimir Putin was in New Delhi for a two-day visit last month to strengthen ties with India, meeting with Indian Prime Minister Manmohan Singh on January 25. The purpose of the meeting was to bolster ties between the two nations’ energy industries, interchange technology, and boost trade from $3.8 billion to $10 billion by 2010.

Prime Minister Singh stated, “… Russia remains indispensable to the core of India’s foreign-policy interests.” A survey of India’s energy dependence highlights just how true Singh’s statement is.

India’s economy is growing swiftly, a full 9 percent in the fiscal year ending March 2006. Now valued near $1 trillion, it is expected to pass South Korea as Asia’s third-largest economy this year. In sustaining this phenomenal growth, India has become the fifth-largest oil consumer, importing 70 percent of its oil. While India does have 5.6 billion barrels of oil reserves, second only to China in the Asia-Pacific region, the Indian government has suggested those reserves will not last until 2016 unless a new discovery is made.

India’s heavy dependence on energy imports underscores its need to diversify its supplier base and strengthen ties with energy-rich countries like Russia. As such, on January 25 India’s Oil and Natural Gas Corporation, its largest state-owned company, and Russia’s Rosneft announced joint plans to develop exploration and refining operations.

While India has much to gain, Russia is the biggest winner of all. Russia is quickly becoming the holder of the balance of power with Asia. The largest Asian nations—China, Japan and India—have come, cap in hand, seeking to form energy partnerships with Russia.

Clearly, Russian energy is part of the glue beginning to bond Asia together.