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India and Russia Deepen Energy Ties Amid Middle East Turmoil and US Sanctions
India and Russia move to resume direct LNG sales & boost crude imports as Middle East tensions spike. Delhi balances energy security with Western sanctions risks.
ND
by News Desk
2026-03-27
India and Russia Deepen Energy Ties Amid Middle East Turmoil and US Sanctions

India and Russia are moving to strengthen their energy cooperation, even as New Delhi navigates the delicate balance between Western sanctions and rising domestic energy needs.

After slashing Russian crude purchases in January to ease U.S. trade tensions, India is now in talks to resume direct liquefied natural gas (LNG) sales from Russia for the first time since the Ukraine war began. The negotiations follow a March 19 meeting in Delhi between Russian Deputy Energy Minister Pavel Sorokin and Indian Petroleum and Gas Minister Hardeep Singh Puri, where officials reached a “verbal agreement” to prepare an LNG deal.

If finalized, the deal would mark a major step in India-Russia energy relations, alongside plans to increase Russian crude imports, potentially doubling shipments to around 40% of India’s total oil imports.

India has already asked its energy importers to prepare for resumed LNG purchases and has approached Washington for a possible sanctions waiver. Analysts note that any new LNG accord may include less favorable terms than India’s 20-year deal with Gazprom from 2012, as Russia leverages a seller’s market amid soaring energy prices.

The shift comes in response to Middle East instability. Following the U.S.-Israeli attack on Iran on February 28, shipping through the Strait of Hormuz—critical for India’s crude and LNG supply—was disrupted. Long lines at gas stations and shortages of cooking fuel in India followed, prompting New Delhi to quickly pivot back to Russian energy imports.

India’s decision highlights the delicate geopolitical balancing act it faces: maintaining strategic ties with the United States while securing affordable energy for 1.4 billion people. “India chose the course that best served its national interests, anchored in a long-standing and trusted partnership with Russia,” said former Indian ambassador to Moscow Ajai Malhotra.

Beyond energy, Russia is exploring broader cooperation with India, including collaboration on transmission infrastructure in remote regions, expanded air connectivity, and faster rupee-rouble trade settlements, which now allow transactions of up to $1 billion in a single day. Russian Foreign Minister Sergei Lavrov said that 96% of trade between the two countries is now conducted in local currencies, exemplifying the deepening partnership.

As global energy prices surge, this renewed India-Russia engagement underscores the country’s strategy of energy diversification and self-reliance, even amid the complexities of U.S. sanctions and a volatile Middle East.
Tagged:

LNG

EnergySecurity

IndiaRussia

OilImports
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