India is working to enhance its energy cooperation with Russia, aiming to secure crucial crude and LNG supplies as disruptions arise from the ongoing US-Israeli military actions against Iran.
The Indian government is reviving partnerships with Russia just months after reducing crude oil imports to alleviate pressure from US tariffs. Recent talks between officials from New Delhi and Moscow aim to explore the possibility of resuming direct liquefied natural gas (LNG) supplies for the first time since the initiation of the Russia-Ukraine conflict, with negotiations expected to wrap up within weeks.
These discussions follow retaliatory measures taken by Iran in response to US- Israeli strikes, which have adversely impacted vital shipping routes. As India relies heavily on energy flow through the Strait of Hormuz, concerns over supply stability, escalating fuel prices, and internal shortages have become pressing issues.
During talks held on March 19 in Delhi, Russian Deputy Energy Minister Pavel Sorokin and India's Petroleum Minister Hardeep Singh Puri addressed the expansion of crude oil shipments and the advancement of LNG cooperation. It is anticipated that Russian oil could soon make up 40% of India's total imports, significantly increasing from levels seen in January.
Previously, India emerged as one of the largest purchasers of Russian crude oil following the imposition of Western sanctions, acquiring discounted oil worth nearly $44 billion last year. However, imports witnessed a decline after Trump enacted significant tariffs, which were subsequently nullified by the US Supreme Court regarding Indian exports.
In light of tightening energy markets, Indian authorities are reassessing previous concessions. The government has also reached out to Washington to explore potential sanctions waivers that would allow for the resumption of Russian LNG imports, while still engaging in limited purchases of non- sanctioned energy sources.
Experts suggest that this pivot illustrates India's strategic balancing act between maintaining relations with the US and strengthening ties with Russia, as it seeks to secure affordable energy amidst geopolitical challenges. Russia is positioning itself to deepen economic associations with India, which may include investments in India’s power infrastructure and increased trade conducted in local currencies.
Officials have cautioned that ongoing instability in the Middle East could further drive inflation, weaken the Indian currency, and disrupt economic growth, underscoring the imperative for Delhi to reconnect with Moscow.
Comments (0)
You must be logged in to comment.
Be the first to comment on this article!