India and Russia are preparing to restart direct sales of liquefied natural gas (LNG) for the first time since the Ukraine war, reports Reuters quoting people familiar with the matter. The move comes as both sides deepen energy ties amid rising global prices triggered by Strait of Hormuz closure amid Iran-US-Israel war.
A verbal understanding to begin negotiations was reached during a March 19 meeting in Delhi between Russian Deputy Energy Minister Pavel Sorokin and India’s Petroleum Minister Hardeep Singh Puri. If India proceeds, talks could be concluded within weeks, though the deal risks breaching Western sanctions.
In January, India reduced purchases of Russian crude while negotiating to ease US tariffs under Donald Trump. However, within two months, Delhi and Moscow began strengthening cooperation again.
The two sides also agreed to increase crude oil supplies, which could rise to at least 40% of India’s total imports within a month. India had earlier bought nearly $44 billion worth of Russian crude, supporting Moscow’s economy after the Ukraine invasion.
The discussions come as energy prices surge following the US-Israel attack on Iran. India has asked its importers to prepare for possible LNG purchases from Russia and has approached Washington for a sanctions waiver.
Officials said India is also in talks with other countries to secure energy supplies, including LNG. Authorities continue to import Russian LPG, which is not under sanctions.
India’s energy strategy changed after Iran’s retaliation targeted ships in the Strait of Hormuz, through which about half of India’s oil and LNG supplies pass. The disruption led to long queues at fuel stations and shortages of cooking gas in some areas.
Demand for Russian energy has since risen, as shipments to Asia avoid the Gulf route. Indian refiners increased orders just before the US announced a temporary waiver for some purchases.
A government note warned that prolonged disruption in Middle East supplies could lead to higher inflation, a weaker currency and rising foreign debt. Export growth could fall by 2% to 4%, while wholesale inflation may rise by 0.3% to 0.7%.
Russia is also exploring wider cooperation with India. Discussions include power transmission projects in remote areas and expanding direct air connectivity.
Foreign Minister Sergei Lavrov said 96% of trade between the two countries is now conducted in rupees and roubles. Faster transactions are also being enabled through Russian lender Sberbank.
Former ambassador Ajai Malhotra said India’s approach reflects its national interests and long-standing ties with Russia. He added that India should seek exemptions or adjustments from the US as part of negotiations between strategic partners.
