For the first time since 2022: India and Russia resume LNG supplies
Photo: India and Russia resume LNG supplies (Getty Images)
The war in Iran has pushed India to resume direct purchases of liquefied natural gas (LNG) from Russia, marking the first such move since the start of the full-scale war in Ukraine, Reuters reports.
According to the agency’s sources, a verbal agreement to begin LNG negotiations was reached during a March 19 meeting in Delhi between Russian Deputy Energy Minister Pavel Sorokin and Indian Petroleum and Gas Minister Hardeep Singh Puri.
One source said that if India decides to proceed with a deal, which could risk violating Western sanctions, negotiations could be completed within weeks.
During the meeting, Russian and Indian officials also agreed to further increase oil supplies from Russia, which could double compared to January levels and reach at least 40% of India’s total imports, three Reuters sources said.
India has not purchased LNG from Russia since the start of the full-scale war in Ukraine. However, after Europe moved away from Russian energy, India and China became the main buyers of Russian oil and gas, accounting for about 80% of exports.
According to a government document reviewed by Reuters, some Indian officials regret cutting purchases of Russian oil under pressure from the United States.
"India had reduced purchases of discounted Russian crude, which would have buffered the situation to an extent," says a note prepared on March 20 for the Cabinet Secretariat.
India-Russia relations
After years of buying crude oil from Moscow at discounted prices, India sharply reduced imports from Russia. This came after US President Donald Trump imposed tariffs of up to 50% on Indian goods in August. The US Supreme Court later ruled those measures unlawful.
However, the situation quickly shifted amid escalating tensions in the Middle East. Following the start of a US and Israeli military operation against Iran, Iranian forces blocked the Strait of Hormuz — a key route for oil supplies from Gulf countries. This caused a sharp rise in global oil prices.
Against this backdrop, India began reassessing its energy policy.
In particular, according to Bloomberg, several tankers carrying Russian oil that were initially headed to East Asian countries changed course toward India, signaling a renewed interest in Russian energy resources by New Delhi.
