Just months after reducing its purchases of Russian crude to ease punitive U.S. tariffs, India is moving to deepen energy cooperation with Moscow, Reuters reports. Sources familiar with the discussions say India and Russia have agreed to prepare for the direct sale of Russian liquefied natural gas (LNG) to India for the first time since the Ukraine war began. The deal, if finalized, could conclude within weeks, though it carries the risk of violating Western sanctions. The March 19 meeting between Russian Deputy Energy Minister Pavel Sorokin and Indian Petroleum and Gas Minister Hardeep Singh Puri reportedly also included plans to increase crude oil sales, potentially doubling imports to at least 40 percent of India’s total within a month.
The shift comes amid soaring energy prices triggered by the U.S.-Israeli attack on Iran and Tehran’s retaliatory actions that disrupted crude and LNG shipments through the Strait of Hormuz, a key channel for India’s energy imports. Indian refiners have already started ordering additional Russian crude, with the U.S. offering a temporary waiver to allow sanctioned cargoes. Reuters reports that this reversal has sparked internal debate in New Delhi, as previous reductions in Russian imports were seen as concessions to Washington. Government documents warned that prolonged Middle East disruptions could trigger higher inflation, a weaker rupee, rising foreign debt, and slower export growth.
Moscow is leveraging the situation to strengthen its ties with India, proposing LNG deals, expanded crude supplies, and potential collaboration in India’s power transmission sector, particularly in remote regions. Russian executives have also explored increased air connectivity between the countries. Chief Kremlin diplomat Sergei Lavrov emphasized that 96 percent of trade between Russia and India is now conducted in rupees and roubles, with financial transactions up to $1 billion processed in as little as one day. Analysts note that the LNG deal would likely come on less favorable terms than India’s 2012 agreement with Gazprom, reflecting a “seller’s market” for Russian energy.
As New Delhi navigates its energy security needs for 1.4 billion people, balancing market dynamics and geopolitical pressures, Reuters highlights that the warming ties with Russia underscore India’s strategic choice to protect its national interests amid a rapidly shifting global energy landscape.
