India Strengthens Relations with Russia Amid Disruptions in Energy Supplies Due to Trump’s Iran War
India is strengthening its energy relationship with Russia to ensure a steady supply of crude and LNG in light of the disruptions caused by the US-Israeli conflict involving Iran.
India is taking steps to renew energy collaboration with Russia, only a few months after reducing crude imports to alleviate pressure from US tariffs. Officials from New Delhi and Moscow have reached an agreement to consider the resumption of direct liquefied natural gas (LNG) supplies for the first time since the Russia-Ukraine War, with negotiations likely to conclude in the coming weeks.
The resumption of discussions comes in the wake of disturbances instigated by the US-Israeli strikes on Iran, which prompted retaliatory actions impacting vital shipping routes. India, which relies significantly on energy supplies via the Strait of Hormuz, has encountered issues related to supply, increasing fuel prices, and shortages at home.
On March 19, a meeting took place in Delhi where Russian Deputy Energy Minister Pavel Sorokin and India’s Petroleum Minister Hardeep Singh Puri engaged in discussions about increasing crude shipments and enhancing LNG cooperation. Russian oil may soon represent as much as 40% of India’s overall imports, effectively doubling the levels seen in January.
India emerged as one of Russia’s largest crude buyers after Western sanctions, importing discounted oil valued at nearly $44 billion last year. Nevertheless, purchases fell following Trump’s imposition of significant tariffs, which were later deemed unlawful by the US Supreme Court concerning Indian exports.
In light of the tightening energy markets, Indian authorities are reevaluating previous concessions. The government has reached out to Washington regarding potential sanctions waivers to restart Russian LNG imports, while still making limited purchases of non-sanctioned fuels.
Experts indicate that the change illustrates India’s careful navigation between the US and Russia, as it aims to obtain cost-effective energy while addressing geopolitical challenges. Russia is seizing the opportunity to strengthen economic connections, which may involve investments in India’s power infrastructure and an increase in trade transactions using local currencies.
Officials caution that ongoing instability in the Middle East may lead to increased inflation, a depreciation of India’s currency, and pressure on economic growth, highlighting the importance of Delhi’s renewed engagement with Moscow.
