India revives Russian LNG imports amid Middle East oil chaos and US sanctions pressure
India is moving to restart purchases of Russian liquefied natural gas (LNG) after months of reduced imports. The shift comes as global oil disruptions and rising tensions in the Middle East push New Delhi to secure more affordable energy supplies. At the same time, India has requested a sanctions waiver from the US to ease restrictions on these deals.
India's imports of Russian crude had fallen sharply after US pressure and rising shipping costs cut flows. In early 2023, Russia supplied around 40% of India's oil, but by January 2026, that share dropped to just 21%. Freight expenses surged due to Red Sea attacks, while US tariffs on Russian crude made discounted barrels less attractive. Recent escalations, including the Iran conflict and Hormuz Strait tensions, have now reversed the trend, with Russian tankers returning to Indian ports.
New Delhi has instructed energy firms to prepare for renewed LNG purchases from Russia. Both countries have also agreed to expand crude trade, potentially doubling Russia's share in India's imports within weeks. However, any new LNG agreement is expected to be less favourable for India than the 2012 deal. Russia sees this as an opportunity to deepen economic cooperation, targeting infrastructure and transport projects. Meanwhile, India continues buying Russian liquefied petroleum gas (LPG), balancing its need for cheap fuel against diplomatic ties with Washington.
The return to Russian energy highlights India's struggle between cost concerns and geopolitical relationships. A prolonged Middle East oil crisis could further strain India's economy, risking higher inflation and currency weakness. For now, the country is securing supplies while seeking US flexibility on sanctions.
Read also:
- American teenagers taking up farming roles previously filled by immigrants, a concept revisited from 1965's labor market shift.
- Weekly affairs in the German Federal Parliament (Bundestag)
- Landslide claims seven lives, injures six individuals while they work to restore a water channel in the northern region of Pakistan
- Escalating conflict in Sudan has prompted the United Nations to announce a critical gender crisis, highlighting the disproportionate impact of the ongoing violence on women and girls.
