India is moving to re-engage with Russia on energy supplies after recent disruptions in West Asia exposed vulnerabilities in its import dependence and pushed fuel prices upward. The shift comes just weeks after New Delhi had scaled back Russian crude purchases amid ongoing trade negotiations with the United States.
According to a Reuters report, India and Russia have reached a verbal understanding to begin talks on resuming direct supplies of Russian liquefied natural gas (LNG) to India. If formalised, this would mark the first such engagement since the start of the Ukraine war, when energy ties between Moscow and several global partners came under strain.
The discussions are said to have taken shape during a meeting on March 19 in New Delhi between Russian Deputy Energy Minister Pavel Sorokin and Union Petroleum and Natural Gas Minister Hardeep Singh Puri. Sources familiar with the matter indicated that while the proposal remains at an early stage, negotiations could move quickly. At the same time, any deal carries the possibility of attracting US sanctions.
Alongside LNG, both sides are also understood to be exploring an expansion in crude oil trade. Officials are considering increasing volumes from the reduced levels seen in January, with the possibility of Russian supplies accounting for at least 40% of India’s total imports within a month.
The renewed engagement comes against the backdrop of a widening crisis in West Asia. The February 28 US-Israeli strike on Iran, followed by Tehran’s retaliation targeting shipping routes in the Strait of Hormuz, has disrupted a key artery for global energy flows. A significant share of India’s crude oil and LNG imports pass through this route, making the situation particularly sensitive for domestic supply.
The impact has begun to be felt on the ground. Reports have pointed to long queues at some fuel stations, while restaurants in certain regions are facing shortages of LPG supplies. Rising global prices have added to the strain.
An internal note from the Cabinet Secretariat, dated March 20 and cited by Reuters, acknowledged the challenges. It noted that India’s earlier decision to reduce discounted Russian crude purchases had limited its ability to cushion the current shock. The note warned that a prolonged disruption in West Asia could lead to higher inflation, pressure on the rupee, and an increase in foreign debt.
Russian energy supplies offer an alternative route that bypasses the Gulf, either through overland channels or Arctic shipping lanes. This logistical advantage has taken on greater significance amid the current disruptions. Even before Washington announced a temporary sanctions waiver on March 5 allowing limited purchases, Indian state-owned refiners had reportedly begun placing fresh orders for Russian crude. As global prices continued to rise, the United States subsequently eased some of its restrictions further.
The situation has effectively reversed India’s earlier position. After reducing imports to maintain alignment with US expectations, the country is now moving to secure supplies again, though market conditions have shifted. “It is now a seller’s market,” one source told Reuters, referring to the proposed LNG arrangement.
India has also approached the United States seeking a sanctions waiver that would cover potential LNG imports from Russia, according to people familiar with the discussions.
Former Indian Ambassador to Moscow Ajai Malhotra said the country’s decisions should be viewed through the lens of national interest. He described India’s relationship with Russia as longstanding and stable, and suggested that New Delhi should seek exemptions or accommodations as part of its negotiations with strategic partners.
Beyond hydrocarbons, discussions between the two sides appear to be expanding. Russian state-run power grid company Rosseti has proposed cooperation with Indian entities in building transmission infrastructure in remote and mountainous regions, a move that could mark its entry into India’s power sector. There are also indications that both countries are looking at improving air connectivity as part of broader engagement.
With energy security concerns rising and geopolitical tensions continuing, India’s recalibration of its approach to Russian supplies reflects the pressures of balancing diplomatic considerations with immediate domestic needs.
