India is reviving its energy partnership with Russia as the Middle East conflict disrupts global supplies. Rising oil and LNG prices following the U.S.-Israeli attack on Iran have prompted Delhi to explore direct Russian energy imports. This move could impact millions of Indian consumers, businesses, and state-owned energy companies facing shortages.
Officials said India and Russia agreed to prepare for resuming direct liquefied natural gas sales for the first time since the Ukraine war. Negotiations could conclude within weeks if India proceeds, though doing so risks violating Western sanctions. Indian refiners are also expected to double crude oil imports from Russia to nearly 40 percent of total consumption.
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The decision reverses India’s earlier cutbacks in Russian crude to appease U.S. tariffs under the Trump administration. Analysts say the disruption of Strait of Hormuz shipments and soaring energy prices forced Delhi to reconsider, highlighting the country’s need for reliable energy supplies. Government documents warned that prolonged disruptions could increase inflation, weaken the rupee, and strain foreign reserves.
Beyond crude and LNG, Moscow is eyeing India’s power transmission sector and air connectivity expansion, including potential direct flights. Current trade is increasingly conducted in rupees and roubles, with transactions of up to $1 billion processed within a day. Experts say the developments reinforce a decades-long India-Russia strategic relationship based on mutual trust and respect.
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While Washington has been approached for a potential sanctions waiver, Indian authorities emphasize that energy policy prioritizes domestic demand, market dynamics, and global conditions. India continues purchasing sanctioned liquefied petroleum gas for cooking, mitigating shortages and ensuring continuity for essential sectors.