India has once again recalibrated its energy engagement with Russia, just two months after securing an agreement with the United States to ease steep tariffs on its exports, signalling a renewed balancing act in its global energy strategy.
New Delhi and Moscow are now moving to deepen cooperation, with both sides agreeing to prepare for the resumption of direct liquefied natural gas (LNG) supplies from Russia, a first since the outbreak of the Ukraine war. According to a Reuters report citing sources familiar with the discussions, negotiations could be concluded within weeks if India decides to proceed, despite the potential risk of breaching Western sanctions.
LNG Talks Resume as Energy Prices Surge
The groundwork for the proposed LNG deal was laid during a March 19 meeting in Delhi between Russian Deputy Energy Minister Pavel Sorokin and India’s Petroleum and Natural Gas Minister Hardeep Singh Puri. People with knowledge of the development described the outcome as a “verbal agreement” to move forward with negotiations, details that had not been previously disclosed.
The talks come against the backdrop of soaring global energy prices following the February 28 attack on Iran by the United States and Israel, which has fuelled instability across the region. The resulting tensions have disrupted key supply routes, intensifying concerns over energy security.
In parallel, both sides also discussed expanding crude oil trade. Russian oil exports to India could rise significantly, potentially doubling from January levels to account for at least 40 per cent of India’s total imports within a month, according to people familiar with the matter.
India had emerged as a major buyer of discounted Russian crude following Moscow’s invasion of Ukraine, purchasing nearly $44 billion worth last year. These purchases played a crucial role in sustaining Russia’s wartime economy, even as they became a point of friction with the Trump administration.
Strained Energy Supplies
New Delhi has also instructed domestic energy importers to prepare for a possible resumption of Russian LNG purchases. At the same time, it has approached Washington to explore the possibility of a sanctions waiver, the report said.
Responding to queries on the development, External Affairs Ministry spokesperson Randhir Jaiswal said India’s energy decisions are guided by the needs of its 1.4 billion people, as well as market forces and evolving global conditions.
Separately, Indian officials have confirmed ongoing imports of Russian liquefied petroleum gas (LPG), primarily used for cooking, which is not subject to sanctions.
US Tariff Threat
After years of ramping up Russian crude purchases at discounted rates, India had sharply reduced imports following the imposition of tariffs, as high as 50 per cent, on Indian goods by then US President Donald Trump in August. However, the US Supreme Court has since ruled that those tariffs were unlawful.
India’s strategy has shifted once again amid escalating conflict in West Asia. Iran’s retaliation to the February strikes has included targeting vessels in the Strait of Hormuz, a critical chokepoint through which nearly half of India’s crude oil and LNG supplies transit, effectively threatening one of the country’s most vital energy lifelines.
