India's partnership with Russia becomes strategic decision
Date
11/20/2024 1:48:47 AM
(MENAFN) In an era where energy security is crucial, India's partnership with Russia has become a strategic decision, allowing India to access Russia's vast energy resources at competitive prices despite Western sanctions. This alliance not only supports India's energy diversification goals but also highlights the country's ability to navigate complex global geopolitics with a pragmatic approach to securing its energy future.
Prior to the escalation of the Ukraine conflict in February 2022, India and Russia had already built a longstanding partnership, underpinned by reliable energy supplies, long-term contracts, and key infrastructure investments. Russia's state-owned Rosneft’s acquisition of Essar Oil, for example, contributed significantly to India’s economic growth. This relationship survived geopolitical changes, such as the Cold War, and market fluctuations, creating a stable foundation for their current alliance.
Following the imposition of Western sanctions on Moscow, India deepened its energy ties with Russia, defying pressure from Washington and Brussels. Through BRICS cooperation, India managed to circumvent sanctions and stabilize its oil imports. By 2023, nearly 40% of India’s crude oil came from Russia, reducing its reliance on the Middle East and reinforcing its energy security. This shift has led to substantial economic benefits, including savings of approximately $2.7 billion on oil imports, which have alleviated pressure on India’s trade deficit and supported its economic growth.
Looking ahead, both countries aim to increase bilateral trade from $66 billion to $100 billion by 2030, emphasizing the strength of their energy and economic relationship. This strategic alignment is vital for India as it seeks to secure a stable, diversified energy supply, reduce dependency on volatile regions, and continue its economic development.
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