Russia Offers Uninterrupted Fuel Amidst US Pressure on India
Russian President Vladimir Putin has extended a significant offer to India, assuring "uninterrupted shipments of fuel" amidst persistent U.S. pressure on New Delhi to curtail its reliance on Russian oil. This offer came during a joint address with Indian Prime Minister Narendra Modi, marking Putin's first visit to the country since Russia's full-scale invasion of Ukraine in 2022. The invasion triggered widespread international sanctions, forcing Russia to actively seek new markets for its vast energy exports.
India's Pivotal Role in Russian Oil Exports
Following the sanctions, India has emerged as a crucial buyer, becoming the second-largest importer of Russian crude oil, surpassed only by China. Data from the Finland-based Centre for Research on Energy and Clean Air indicates that India acquired a substantial 38% of all Russian crude exports in October. This increased trade, however, has drawn Washington's attention, leading to a 25% tariff on India for its Russian oil purchases in August and subsequent U.S. sanctions on major Russian oil companies like Rosneft and Lukoil in October.
Navigating Geopolitical Tensions: India's Delicate Balance
India finds itself in a precarious geopolitical position, balancing its strong strategic alliance with the United States against its long-standing dependence on Russia for both energy resources and critical military hardware. During an interview with an Indian television channel, Putin openly challenged the legitimacy of U.S. pressure on India, highlighting what he perceived as double standards. He noted that the United States itself continues to purchase nuclear fuel from Russia for its own power plants, questioning why India should be denied a similar prerogative.
While former President Donald Trump acknowledged a recent reduction in India's Russian oil imports, experts told CNBC that this trend might be temporary, suggesting potential normalization in the future.
Beyond Crude: A Broader Energy Partnership
The energy partnership between Russia and India extends beyond crude oil. Russia's Rosatom is actively involved in supplying reactors and reportedly fuel for India's Kudankulam nuclear power plant in Tamil Nadu, which boasts a combined capacity of 6000MW. President Putin reiterated Moscow's reliability as a supplier of "oil, gas, coal and everything that is required for the development of India's energy," affirming a robust, long-term energy relationship.
India's Strategic Energy Diversification
Despite its deep ties with Russia, India is also strategically diversifying its energy portfolio. Last month, India finalized a "historic deal" with Washington, under which Indian state-owned oil companies committed to importing approximately 2.2 million tonnes per annum of liquefied petroleum gas (LPG) from the U.S. over a one-year period. This move underscores India's complex energy diplomacy as it navigates global energy markets and geopolitical pressures, ensuring its energy security from multiple sources.