India-Russia LNG Deal: New Delhi and Moscow Discuss Resuming Russian Gas Supplies Amid Global Energy Disruptions
With the conflict in West Asia rattling energy markets and shipping through the Strait of Hormuz growing riskier, India and Russia are dusting off an old conversation: whether Russian LNG can play a bigger role in India’s energy mix. It’s not a new idea. The two countries have flirted with gas cooperation for years, and Russian LNG is suddenly looking more attractive to Asian buyers who are scrambling for alternatives as global supplies tighten and prices climb.
Why now?
India has always leaned on a patchwork of sources for its energy domestic output, pipeline gas, and LNG imports. Russia, as one of the world’s biggest oil and gas producers, has long been part of that picture, at least in theory. Sanctions have made things messier, but India’s interest in Russian Arctic LNG projects hasn’t gone away if anything, it’s resurfaced as New Delhi looks for gas suppliers that aren’t in the Middle East. This isn’t the first time the two countries have gone down this road either. Back in 2019, an India-Russia agreement flagged Russian LNG as a key piece of expanding hydrocarbon ties and helping India move toward a more gas-driven economy.
The Hormuz problem
The real trigger here is the chaos around the Strait of Hormuz. It choked off some Gulf LNG shipments, and that’s pushed Asian LNG prices up sharply Reuters reported India and other big buyers were already hunting for alternative supply in September. That matters a lot for India, where imported LNG feeds industries like fertilisers, power plants, city gas networks, and manufacturing. When global gas prices spike, it doesn’t stay abstract for long; it eventually shows up in production costs, transport bills, and household energy expenses.
Russia as a backup plan with strings attached
On paper, Russian LNG gives India a way to diversify away from a single volatile region. But this isn’t just a matter of signing a contract. Sanctions, shipping headaches, payment routing, and the risk of secondary sanctions all complicate things. India’s already felt heat over its Russian oil purchases. The US recently passed a law letting the president slap tariffs as high as 100% on countries buying Russian oil. New Delhi’s response has essentially been: energy security comes first. That same tension would likely shadow any Russian LNG deal too.
A bigger diversification play
Step back, and this fits a pattern. India seems focused on not being overly dependent on any one supplier or shipping corridor. Energy cooperation came up again when PM Modi met President Putin this September, alongside trade and defence talks. Meanwhile, Indian LNG buyers are stuck paying up for expensive spot cargoes. Reuters noted that September demand was already being squeezed by high prices tied to Middle East disruptions. That’s exactly the kind of pressure that pushes a country to lock in longer-term, more geographically spread-out supply deals.
What would an actual deal mean?
If this goes somewhere, it’s not just an India-Russia story. India would get another supply cushion for times when the global market gets tight. Russia would get another buyer to lean on as European demand keeps shrinking and sanctions squeeze its usual markets. But none of this is settled yet it all comes down to pricing, sanctions risk, shipping logistics, and whether Russian LNG can actually compete on cost once it reaches Indian shores.
FAQs
Is India buying Russian LNG right now?
Only in a limited, complicated way sanctions have gotten in the way of bigger purchases. The current talks are about deepening cooperation, not a done deal.
Why the interest?
Diversification Russia offers a supply option outside the Middle East, which is looking shakier by the month.
Could US sanctions derail this?
Very possibly they could complicate payments, shipping, and insurance enough to make deals commercially unworkable.
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