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The Russian President, Vladimir Putin, has been attending the annual Heads of State Shanghai Cooperation Organisation summit in China and has had the opportunity to discuss bilateral relations with other SCO members, such as with Nepal’s Prime Minister, Khadga Prasad Sharma Oli. This is what they had to say:
Putin: “Mr Prime Minister, I am delighted to see you and have this opportunity to talk with you and discuss both current matters and bilateral issues on the sidelines of the SCO summit.
We established diplomatic relations in 1956, and next year we will be marking an anniversary. Even today, we can sum up some outcomes of our cooperation. I would like to note that we have never had any problems. Moreover, our positions on key issues on the international agenda are either very close or fully aligned, as diplomats usually say. We can also think about ways to expand and deepen our interaction in the most important areas.”
Oli: “Your Excellency, thank you very much for managing to find time – although it is midnight – to meet with me and to provide me this opportunity. I am very glad to get this opportunity to meet with you.
We are all friends, of course. Between our two countries, diplomatic relations were established in 1956, and since then, our bilateral relations have always been very good. I don’t know the reason but our two nations’ friendly ties are a little bit weak right now. Before, I think, they were very strong, with frequent coming and going, but so far I know of no Russian president or top leader who has visited Nepal until now, though people from Nepal have visited Russia. When I was prime minister, I was in Russia in 1999 and 2000. I got the opportunity to understand and see the landscapes, geography, and historical places like Moscow and St Petersburg. They really are special. I also got the opportunity to go to neighbouring countries, like Belarus and Ukraine.”
Putin: “Mr Prime Minister, I will take advantage of your idea, and we will certainly consider visiting your country, Nepal. Meanwhile, we will always be glad to welcome you in Russia, at any time convenient for you.”
Oli: “When I visited Russia in 1999, I knew that more than 5,000 students were getting good education in Russia, in different universities, in particular at the People’s Friendship University, where many students got the opportunity to study there in Russia. Even now there are so many doctors in Nepal who are treating people, who were educated in Russia.”
Putin: “You know, whenever people study in another country, including Russia, they leave it with very good impressions and warm memories. In this case, with memories of Russia. These people then become a natural link between Russia and their homeland, in this case, Nepal.
Considering humanitarian cooperation, we attach great importance to continuing contacts in education and culture. We will be glad to further develop this area of our cooperation. You mentioned that young Nepalese are showing an increasing interest in education in Russia in different areas. Of course, we will meet you halfway in identifying the most promising areas of study. We can also consider other spheres of humanitarian cooperation. I am sure the Russian public would be very interested, for example, in an exhibition of Nepalese sculpture. Let us consider this possibility as well.”
Summary
Given their geographic remoteness from each other, it is understandable that bilateral trade relations between Russia and Nepal are in small volumes. Nonetheless, the two countries’ relations are close, friendly and multi-faceted in nature and scope, encompassing economic and technical cooperation, trade, tourism, culture and human resource development. Both Nepal and Russia have similar views on international issues of mutual concern.
The teachings and ideals of the Buddha, who was born in Lumbini, Nepal, spread to Russia through Tibet and Mongolia. The Buryatia, Tuva and Kalmykia regions of the Russian Federation have substantial Buddhist populations. Russia has an estimated 1.5 million Buddhists based in these regions.
Nepal is one of the richest countries in the world in terms of water resources, and Russia is looking to get involved in the country’s energy sector. According to Russian President Putin, Moscow and Kathmandu are looking to increase cooperation in the energy, metallurgy, infrastructure, and civil aviation sectors. Russia already supplies helicopters to Nepal, with Russian aviation equipment proving itself to be suitable for use in Nepal’s high-mountain conditions. Russian Mi-17 helicopters are operating in Nepal, and plans are in place to develop their use.
Nepal is reportedly working on several projects, including nine major power plants, while considering another 27 sites for future exploration. It is expected that Russian energy corporations will try to get involved and benefit from cooperation with Nepal, as the country’s river systems provide immense potential for hydroelectric development. Nepal’s maximum potential for the production of hydroelectricity has not yet been met. Russian technology related to hydropower plants, accessories, and non-conventional use of energy is particularly suitable for Nepal. It is worth mentioning that the Soviet Union provided assistance to Nepal for the setting up of the Panauti hydroelectric power station in 1965.
Nepal has a population of about 31 million and a GDP (PPP) of about US$170 billion. Per capita income in PPP terms is about US$5,500. The country is a significant recipient of overseas remittances due to a substantial number of Nepalese workers being based overseas.
Major industries include tourism, carpets, textiles, cigarettes, cement, brick, as well as small rice, jute, sugar and oilseed mills. Agricultural products include cereals (barley, maize, millet, paddy and wheat), oilseed, potato, pulses, sugarcane, jute, tobacco, milk and water buffalo meat.
Russia -Nepal bilateral trade dropped in 2022 and 2023 due to the secondary problems caused by sanctions interfering with trade and logistics. In 2024, there was some recovery, mainly via Indian supply chains, with Russia exporting about US$16 million worth of goods to Nepal, being mainly edible seeds, nuts and other agricultural produce. Nepal exported items such as woollen items such as shawls and carpets, as well as black tea to the value of about US$5 million.
According to Sergey Katyrin, head of the Russian Chamber of Commerce and Industry, exports from Russia to Nepal could increase tenfold to US$400 million in increasing agricultural products trade. He said that “There is potential for creating joint ventures for the storage and processing of agricultural products, with future access to large markets in neighbouring countries.”
According to him, the agro-industrial complex is one of the most promising areas of cooperation between Russia and Nepal for increasing bilateral trade, in particular, the export of agricultural machinery and agricultural products.
Katyrin added that there are prospects for supplying grain and chemical fertilizers to Nepalese markets under state contracts. Nepal is interested in purchasing sunflower oil, sugar, and flax, and in turn offers to consider the possibility of establishing supplies to Russia of tea (both granulated and leaf), pickles, medicinal herbs, extracts for cosmetic needs, and essential oils.
As President Putin pointed out, Nepal and Russia will celebrate their 70th anniversary of the establishment of diplomatic relations in 2026, with a plan to drive tourism expected.
