India to Halve Russian Oil Imports Amid Sanctions, Eyes Broader Cooperation
India plans to significantly cut Russian oil imports by 50%, aiming for a 47% reduction by December 2025, due to the threat of US sanctions on Indian companies and banks. Former Foreign Secretary Kanwal Sibal revealed this ahead of President Putin's visit, stating India will diversify energy sources. Despite the oil cut, bilateral ties will be maintained through increased Indian investments in Russia's oil/gas sector, LNG, fertilizers, coking coal, and enhanced defense cooperation, leveraging Russia's modern warfare experience.
India is set to drastically reduce its crude oil imports from Russia by 50%, with a projected 47% decrease to approximately 1 million barrels per day by December 2025, down from 1.87 million in November. This significant shift, highlighted by former Foreign Secretary Kanwal Sibal, is primarily driven by the threat of American sanctions on Indian public and private sector companies and banks, compelling India to diversify its energy supply sources and increase US oil imports.Sibal's remarks come ahead of Russian President Vladimir Putin's visit to New Delhi, where discussions will likely focus on navigating these geopolitical pressures while preserving the bilateral relationship. Russia reportedly understands India's need to reduce oil purchases. To mitigate any adverse impact on ties, India plans to bolster investments in Russia's oil and gas sector, pursue more LNG, fertilizer, and coking coal agreements, and enhance cooperation in pharmaceuticals and information technology.A cornerstone of the India-Russia partnership remains defense cooperation. Sibal emphasized that the ongoing Russia-Ukraine war presents a unique opportunity for both nations to collaborate on developing weaponry for modern warfare. He suggested India could gain invaluable insights from Russia's real-ground experience, particularly concerning counter-technologies against advanced NATO weaponry. Sibal cited Russia's indigenous development of the nuclear-powered unmanned underwater vehicle Poseidon as evidence of Moscow's advanced capabilities, opening new avenues for defence partnership. While talks for S-500 air defence systems are expected, a deal for Su-57 fighter jets is unlikely due to India's 'Atmanirbharta' (self-reliance) policy.
