India, Russia in Talks to Resume Direct LNG Sales

(MENAFN) India and Russia are in talks to resume direct liquefied natural gas (LNG) sales for the first time since the escalation of the Ukraine conflict, media reported.

A “verbal agreement” to negotiate an LNG deal was reached during a March 19 meeting in Delhi between Russian Deputy Energy Minister Pavel Sorokin and India’s Petroleum and Natural Gas Minister Hardeep Singh Puri, the news agency said.

Proceeding with the deal could put India at risk of breaching Western sanctions on Russian oil.

The discussions occur against the backdrop of soaring energy prices, fueled by ongoing Middle East tensions and Iran’s blockade of the Strait of Hormuz.

The ministerial talks also settled on plans to further boost crude oil sales to India, potentially doubling from January’s levels to account for at least 40% of the country’s total imports within a month, according to media.

New Delhi officials anticipate that the US waiver will continue as long as disruptions through the Strait persist, a news outlet reported Wednesday.

India became a major buyer of Russian oil after the Ukraine conflict erupted in 2022, purchasing nearly 2 million barrels per day in 2024 and close to $44 billion in crude from Moscow last year.

Under US pressure, India reduced these imports late last year, shifting to Saudi Arabia and Iraq. Much of this Middle Eastern supply has since been constrained by the Iran war, tightening availability and driving Brent crude prices to around $120 per barrel earlier this month.

The South Asian country depends heavily on imports, sourcing 85% of its oil and nearly half of its natural gas from abroad, with roughly half of these shipments passing through the Strait of Hormuz.

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