India and Russia are deepening their energy cooperation, with both sides agreeing to prepare for Russia to resume direct sales of liquefied natural gas (LNG) for the first time since the start of the Ukraine war. The "verbal agreement" to negotiate an LNG deal was reached during a March 19 meeting between Russian Deputy Energy Minister Pavel Sorokin and Indian Petroleum and Gas Minister Hardeep Singh Puri in Delhi.
India has approached Washington about a possible sanctions waiver, according to sources, as it seeks to resume purchases of Russian LNG. The country's Russian crude imports could soon double to 40% of its total supply, with India becoming a major buyer of Russian crude that was heavily discounted after the invasion of Ukraine.
India's decision to cut Russian crude imports as a concession to the U.S. has been widely criticized by policymakers, who warn that a prolonged disruption of oil flows from the Middle East would prompt a cascade of economic challenges, including higher inflation, a weaker currency, and rising foreign debt.
Russia is pressing its advantage, with new LNG accord likely containing less favourable terms for India. Any agreement would mark Moscow's first foray into India's power transmission sector, with executives at Russian state power grid company Rosseti proposing working with their Indian counterparts on transmission facilities.
