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The Financial and Business Association of Euro-Asian Cooperation became a platform for strategic dialogue between Indian business and key players in the oil and gas and industrial sectors of the EAEU on March 3. The meeting was organized by Soltex Group, which has been serving as a business bridge between Russia and India for more than 12 years. The key participant from the Indian partners was JNK India Limited, one of the world leaders in the production of equipment for oil refineries and technological engineering.
The high representative level confirmed the significance of the event for industrial cooperation. The negotiations with JNK India Limited, headed by Nitin Sudii and Pankaj Gupta, were attended by Vitaly Vovk, Deputy Director of the Industrial Policy Department of the EEC; Manish Kumar, Deputy Chairman of the Board of the FBA EAC; Alexey Kazartsev, Head of the International Banking Committee of the FBA EAC, member of the Financial Services Group of the BRICS Business Council, Candidate of Technical Sciences; Sergey Korotkov, Advisor to the President of the FBA EAC; as well as Anton Vasiliev, General Director of SPARTA LLC, member of the expert councils of the committees of the State Duma of the Russian Federation, and Valerian Tochilo, Project Manager at Soltex Group.
A leading role in shaping the investment agenda was played by Vitaly Vovk, who initiated the transition from one-time supplies to long-term investment projects using corporate guarantees and rupee financing. The parties worked out a mechanism in which a Russian company provides a corporate guarantee directly in India (for example, for an amount equivalent to 100 million dollars in rupees) as an alternative to a standard bank guarantee. Under such a guarantee instrument, Indian partners are ready to allocate up to 98% of financing in rupees for the implementation of industrial projects in Russia or within the framework of joint ventures. Soltex, with its 12 years of experience in the Indian direction, ensures the discounting of funds through accounts in Indian branches of Russian banks. The financial contour can be provided by Indian branches of VTB (favorable terms) and Sberbank (rates of 5–6%).
JNK India designs and manufactures process heaters, reformers, flare systems and water treatment equipment, working with licensors UOP, Lummus, Technip, Haldor Topsoe and EPC contractors Hyundai Engineering, SK E&C, GS E&C. The company employs more than 400 people. The production base in Pune allows the manufacture of large-sized modules weighing up to 500 tons (projects for Dangote Refinery in Nigeria and PEMEX in Mexico). The technology portfolio includes distillation, evaporation, heat transfer, process heaters, cracking furnaces and reformers (projects for Reliance Industries, BPCL, HPCL, Assam Petrochemicals). In the field of industrial ecology, the company offers membrane wastewater treatment technologies, including Zero Liquid Discharge units. The green technology portfolio includes green hydrogen production (participation in India’s National Hydrogen Mission), sustainable aviation fuel, green chemistry and carbon capture systems.
A separate block of negotiations was dedicated to the development of hydrogen infrastructure. The parties considered the creation of a network of hydrogen refueling stations — both stationary combined and mobile complexes, including for the agricultural sector. The development of hydrogen technologies was discussed in conjunction with the existing gas motor fuel infrastructure as a base for the transition period. The participants analyzed the landscape of hydrogen production in Russia and the EAEU, which is at the stage of formation. The dilemma of choosing between gray hydrogen based on natural gas (a competitive advantage of Russia due to low cost) and green hydrogen from renewable energy sources (high cost temporarily suspended active movement) was considered in detail. At the same time, the topic of biohydrogen and related areas was defined as cross-cutting and requiring inclusion in the final strategy.
An important topic of discussion was the specifics of working in the markets of the Union. Kazakhstan demonstrates openness to targeted pragmatic projects, while in Russia and Belarus innovative agreements work more effectively when primary approval of technological solutions at the state or corporate level opens access to investments. In the context of the need for constant modernization of fixed assets, two models were identified: operational replacement of retired lines to maintain production continuity and comprehensive innovation programs through approved agreements. The key requirement for partners is the transition from simple supplies to the model of a full-fledged service company ready for technology integration and servicing throughout the entire life cycle of equipment. Such an approach should be stated at the start of negotiations.
The parties agreed to continue the dialogue and prepare a roadmap for the introduction of JNK India technologies at Russian industrial facilities using the proposed investment mechanisms and business models. Detailing of projects with specific figures and specifications is possible after securing preliminary agreements with partners, including attracting investors from other countries.
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