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India-Russia Energy Ties Deepen Despite Western Tariffs

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Moscow Assures Supply Stability Amid US Pressure

In today’s changing world, where global powers are constantly shifting, India is carefully balancing its relationships with both the West and countries like Russia. Despite growing pressure from the United States and its allies, India’s strong energy and defense ties with Russia show how the world’s alliances are being reshaped.

This week, during the 26th India-Russia Inter-Governmental Commission in Moscow, top Russian officials made it abundantly clear: energy cooperation with India will continue uninterrupted, even as the United States prepares to impose a 25% punitive tariff on Indian exports—citing, among other reasons, India’s sustained purchase of Russian oil.

Russia: Sanctions Won’t Disrupt Oil Flow to India

India is currently the second-largest buyer of Russian oil, after China, with Moscow supplying nearly 40% of India’s total energy needs. These purchases have surged since 2022, when the West imposed sweeping sanctions on Russia following the invasion of Ukraine.

Despite a new round of US and EU measures aimed at disrupting Moscow’s energy trade, Russian officials assured that “special mechanisms” are in place to circumvent sanctions and maintain a steady crude supply to Indian refineries, particularly the Vadinar facility in Gujarat, co-owned by Russian energy giant Rosneft.

“Despite the political situation, we predict that crude imports will remain stable,” said Evgeny Griva, deputy trade commissioner.
“We can’t discuss the mechanisms—it’s very special,” he added.

Russian chargé d’affaires Roman Babushkin echoed the sentiment, saying:

“Every time our economic relations are threatened by external factors, we find ways to move forward. We are confident our cooperation with India will continue.”

Beyond Oil: A Defence Relationship Reinforced by Combat

While energy remains the bedrock of the bilateral economic relationship, defense cooperation remains equally vital. In a rare public acknowledgment, Russian officials said the May 2025 hostilities between India and Pakistan—following the Pahalgam terror attack—had served as an unintentional “battle test” for Russian military equipment.

India reportedly deployed the S-400 air defence system, Su-30 fighter jets, and the BrahMos supersonic missile—a joint India-Russia project—in what was dubbed Operation Sindoor. According to Babushkin, the systems performed with “remarkable success,” with one Pakistani surveillance aircraft being downed from a distance of nearly 300 km.

“A Russian weapon is a natural choice for the Indian Army general,” he said, pointing to ongoing co-production projects and an expanded roadmap for defence partnerships.

Russia is also expected to be part of India’s ambitious Sudarshan Chakra air defence shield, announced by Prime Minister Modi and scheduled for operational readiness by 2035.

India’s growing oil trade with Russia has invited sharp criticism from the US, especially from President Donald Trump, who has announced a 25% tariff on Indian goods, with another 25% in penalties over Russian energy imports.

Yet, for New Delhi, the Russia relationship is about more than oil—it’s a strategic imperative. Moscow remains a consistent partner in critical sectors such as nuclear energy, space collaboration, and infrastructure.

Although Indian exports to Russia remain low (just $4.88 billion out of $68.7 billion in 2024–25), Russian officials pledged to reduce the trade imbalance by opening market access, easing business regulations, and developing alternative payment and logistics systems to bypass Western restrictions.

Putin’s Upcoming Visit and a Summit Agenda for the Future

The diplomatic momentum continues to build. External Affairs Minister S. Jaishankar held high-level talks in Moscow with Deputy PM Denis Manturov and Foreign Minister Sergey Lavrov. These meetings form the groundwork for President Vladimir Putin’s expected visit to India later this year for the annual bilateral summit with Prime Minister Modi.

According to Russian officials, the summit will cover:

  • Energy cooperation and nuclear power, including modular reactors

  • Trade and investment facilitation

  • Defense co-production, logistics corridors, and digital payment frameworks

Putin has also spoken with Modi twice in the past two weeks, including discussions on developments in Ukraine and the outcome of his recent Alaska summit with Trump.

India’s ability to maintain partnerships with both Washington and Moscow signals not just diplomatic agility, but also the evolution of a more multipolar global order. In this shifting landscape, India isn’t choosing sides—it’s choosing interests. And for now, Russian oil, defense equipment, and strategic alignment remain firmly in New Delhi’s national calculus.

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