India-Russia energy ties: Will Putin's visit signal that 'oil' is well?

India-Russia energy ties: Will Putin's visit signal that 'oil' is well?

Hours after landing in New Delhi, in an interview with India Today, Putin questioned the heavy US pressure on India not to buy Russian.

“The United States itself still buys nuclear fuel from us for its own nuclear power plants,” he said, adding that if the US has the right to buy Russian fuel, India should enjoy “the same privilege”.

Later, during a joint press briefing, Putin said that Russia is ready to provide uninterrupted fuel supplies to India.

India’s dependence on Russian oil

India is the world’s third-largest consumer of crude oil after the United States and China. In 2025, consumption rose to 265.7 million metric tonnes (MMT). Limited domestic production capability forces India to import around 89% of its crude oil needs.

While India-Russia energy cooperation has historical roots, the Russia-Ukraine war, which began in 2022, reshaped global energy flows. The energy relations between the two nations kick-started in the Soviet era.

The war made Moscow redirect crude exports toward Asia and India becoming a key buyer. This is also partly keeping Moscow’s revenues afloat to fund the Ukraine war.

India abstained on UN resolutions condemning Russia. PM Modi told Russia that “today’s era is not an era of war”. India put itself forward as a possible mediator and a bridge to Russia. With Western sanctions imposed on Russia, India became among the largest buyers of its discounted crude.

Current scenario

According to a Bloomberg report, India’s state-run refiners Indian Oil Corporation and Bharat Petroleum Corporation have bought Russian crude for January delivery. The move is lured by discounts and plentiful supplies from non-sanctioned sellers.

According to a Moneycontrol analysis, between 2015 and 2024, India’s exports to Russia grew three-fold to $4.8 billion, while imports jumped fifteen-fold to $67.2 billion. Oil accounts for 83% of India’s total import from Russia, up from just 2.5% in 2015.

How will Putin’s visit impact energy ties?

Energy cooperation is expected to get further boost with the President’s visit.

Praveen Donthi, a senior analyst for India at Crisis Group, a US-based think tank, told Al Jazeera that the summit “offers an opportunity for both sides to reaffirm their special relationship amidst intense pressure on India from [US] President [Donald] Trump with punitive tariffs”.

Putin’s visit is also India's "strategic autonomy" at play. It is also a balancing act for PM Modi as he holds close ties with Moscow while maintaining his relationship with the US at the same time.