Political Nepal and the Soviet Union established diplomatic relations on July 20, 1956. Nepal extended full and formal diplomatic recognition to the Russian Federation as a sovereign country on December 28, 1991 soon after the disintegration of the USSR. Mr. George F. Kunadze, Deputy Foreign Minister of the Russian Federation visited Nepal on 1992. Similarly in March 1995 his successor Mr. Albert S. Chernysov also paid an official visit to Nepal. These visits contributed to enhance the mutual understanding between two countries. These visits also gave opportunities to discuss the idea of annual consultation at the Foreign Ministry level. On September 1995 Nepalese Foreign Secretary Mr. Kedar Bhakta Shrestha paid an official visit to the Russian Federation. During the visit a formal consultation between two Foreign Ministries were held. The Russian side was represented by Deputy Foreign Minister Mr. Albert S. Chernysov. The two sides signed a Protocol on Bilateral Consultation on September 5, 1995. The Director of the Third Asian Department of the Russian Foreign Ministry Mr. Rashit Hamidullin visited Nepal on February 28- March 2 1997. His Majesty King Birendra Bir Bikram Shah Dev received the honorary doctorate of the Peoples’ Friendship University of Russia on September 17, 1997. In October 1998 Nepalese Foreign Secretary Mr. Murari Raj Sharma visited Russia. During the visit Foreign Secretary had a luncheon meeting with the Deputy Foreign Minister of the Russian Federation Mr. Grigory S. Karasin. In January 2000, Director of the Third Asia Department of the Russian Foreign Ministry Mr. Alexander Alexeyev visited Nepal. During the visit a bilateral consultation meeting was held at the Ministry of Foreign Affairs, Shital Niwas on January 17, 2000. It is quite interesting to note that among the South Asian Countries with which Russia has signed such Protocol, it is only Nepal where the Russian Deputy Foreign Minister has not yet visited to hold bilateral consultation meeting since its signature in 1995. Whereas there are regular exchange of visits in the Deputy Foreign Minister level for holding such consultation meetings with other South Asian countries. Therefore Nepalese side should insist on holding the consultation meetings in the coming years at least in the Deputy Foreign Minister level. Similarly, the provision of the bilateral consultation should be revitalized and regularized by which new areas of cooperation between the two countries could be determined and promoted. A parliamentary delegation, led by Deputy Mr. Sholban V. Kara-Ool, of the Russian Upper House of Parliament, the Federation Council, visited Nepal on December 14-17, 2000. Acting Foreign Secretary Mr. Madhu Raman Acharya paid an official visit to Moscow on bilateral Consultation Meeting between the Foreign Ministries of two countries on April 22-24, 2002. A 8-members delegation led by Rt. Hon’ble Dr. Mohammad Moshin, Chairman of the National Assembly of Nepal paid an official visit to Russia at the invitation of H.E. Mr. Sergei M. Mironov, Chairman of the Council of Federation of the Federal Assembly of the Russian Federation on October 1-4, 2002. Economic Entrepreneurs from Russia participated in the Nepal Investment Forum held in Kathmandu in November 1992. Some letters of intent were signed at that time. During the days of Perestroika and largely after the collapse of the USSR many Nepalese nationals who had come to Russia as students have started to engage themselves in business. Lately they are trying to gather themselves under the umbrella of Russia (CIS)-Nepal Chamber of Commerce and Industry. The establishment of business organization is a positive step towards the development of bilateral economic relations. There are some possibilities of trade between Nepal and Russia. In this connection a four members delegation from the National Trading Limited (NTL) led by Mr. Chandi Prasad Shrestha, Chairman of the NTL as well as Joint Secretary at the Ministry of Commerce, Industry and Supplies visited Russia on September 3-5, 2000 in order to explore the possibilities of bilateral trade. Similarly, a business delegation from the Nepal-Russia Chamber of Commerce and Industry visited Russia on September 11-14, 2000 with the same objective. Russian technology on Hydro Electricity and Light and Medium Industries are suitable for Nepal. In recent years some private airline companies of Nepal have purchased Russian Helicopters for civilian purposes. Besides, Russian Chemical Fertilizers and Metals can be available in very competitive prices in Nepal. Nepalese side can export Carpets and Tea in Russia. There is also a long-term potentiality in the field of Tourism. Nepal is participating in some Tourism fares in Russia since past few year. Education and Scholarship Nepalese Students have always come to the USSR for higher studies since 1950s. After the collapse of the USSR they started to come in various former Soviet Republics in self-finance basis. As a result the standard of education in the Russian Federation has also started to decrease, and in certain cases resulted in the procurement of fake Diplomas by those students. Russian side had put forward an idea of a protocol to safeguard the interest and control the quality of such students. Though it is a welcome idea, after more than three years of putting forward such idea no draft of the protocol has produced by the Russian side. Since 1996 Russian side has resumed the practice of granting scholarships to Nepal. Those scholarships are not fully utilized. Most of the students, after being selected for the scholarship, usually give up the opportunity before coming to Russia. One of the reasons behind it is low stipend provided to the students by the Russian Government. The stipend is meager in comparison with the existing market prices. The Embassy had requested to the authorities of the Russian Higher Education Ministry to consider the increment of monthly stipend of the Nepalese students who pursue higher studies in the government scholarship seats. The concerned authorities expressed that there is no possibility of further increase in the stipend for time being due to the Russian economic condition. The Embassy had requested the Ministry of Education of Government of Nepal to lay down clear criteria, so that the Embassy can issue No Objection Letter to Nepalese Graduates of the Russian Universities to enable them to pursue further studies by utilizing those unfulfilled quotas of the scholarship. In 2001, HMG/Nepal has decided to grant permission to the Embassy to issue, in coordination with the Education Ministry and the National Planning Commission of Nepal, the No Objection Letter to those graduates who wish to pursue post graduation or Ph. D. courses with a precondition that in no way this affects the number of scholarship seats made available by the Russian Government to Nepal every year and in the situation of being lapsed of such scholarship seats due to non-fulfillment by nomination. Tourism Since 1990 Aeroflot was operating direct flights every week between two capitals-Kathmandu & Moscow. In 2001 Aeroflot abruptly decided to discontinue its direct flight to Kathmandu effective after January 13, 2002 showing the basis of a review of commercial viability and efficiency of its flight destinations. The Aeroflot authorities say that Aeroflot will maintain the right of Russian airlines to operate to Kathmandu and is prepared to resume flights if it is able to make the Kathmandu route viable. In this context, they have proposed three points for the consideration of the Civil Aviation authorities of Nepal – permission of 5 frequencies in a week irrespective of the type of aircraft, the 5th Freedom Traffic Rights with exemption of royalty in Kathmandu and exemption of royalty on the flights exceeding one. The Civil Aviation authorities of Nepal have shown flexibility on the Russian side’s points and have proposed for talks either to conclude a new Air Service Agreement (ASA) to replace the existing one or to amend some clauses in the existing ASA so as to bring it up to date. The Aeroflot authorities have informed that they would convey the Nepal side’s readiness to discuss a revised ASA with the civil aviation authorities of Russia and will inform us as soon as a response is received. | 
