India Explores Russian LNG Deal Amid Energy Crisis, Seeks US Sanctions Waiver

India is moving to strengthen its energy partnership with Russia by exploring the resumption of direct imports of liquefied natural gas (LNG), marking a potential shift in energy sourcing strategies amid rising global prices.

According to reports, preliminary discussions between the two countries have led to a verbal understanding to pursue an LNG agreement. The talks were held during a meeting on March 19 between Pavel Sorokin and India’s Petroleum Minister Hardeep Singh Puri in New Delhi.

The move comes at a time when global energy markets are under pressure due to escalating geopolitical tensions, particularly in West Asia. Disruptions around the Strait of Hormuz—a crucial shipping route that handles nearly 20% of the world’s oil and LNG—have significantly driven up prices.

If formalised, the deal could see Russia resume LNG supplies to India for the first time since the start of the Ukraine conflict. However, such a move may conflict with Western sanctions, prompting India to seek a waiver from the United States to proceed without restrictions.

Sources indicate that negotiations could conclude within weeks if both sides decide to move forward. In parallel, India is also preparing to increase crude oil imports from Russia, potentially raising its share to around 40% of total imports in the near term.

India has emerged as one of the largest buyers of discounted Russian crude since 2022, significantly boosting bilateral trade. The country reportedly purchased crude worth billions of dollars from Russia last year, helping secure affordable energy supplies amid global volatility.

At the same time, India has intensified diplomatic efforts to stabilise the situation in West Asia and ensure uninterrupted energy flows through key maritime routes. Concerns over disruptions in commercial shipping have grown, with Donald Trump warning of consequences if Iran does not restore full access to critical waterways.

As the world’s third-largest oil importer, India remains highly sensitive to global supply disruptions and is actively diversifying its energy sources to maintain stability in domestic markets.