Russia remains India’s largest partner in the energy sector, covering the full spectrum from nuclear energy to fossil fuels, and this cooperation will expand in the coming years, New Delhi’s envoy to Moscow, Vinay Kumar, stated on Thursday while addressing a session at the Eastern Economic Forum in Vladivostok.
“Russia forms part of our energy security and we are looking to further expand these ties,” Kumar said. He added: “Russia is also an important partner for food security as it is a large exporter of fertilizers. I would encourage the Russia producers not to only continue but increase exports, for which Russia needs to expand domestic production of fertilizers.”
Bilateral trade between the two nations has increased six-fold in the past two years, mainly owing to India’s purchases of Russian crude oil. In 2023, the trade turnover registered over $65 billion, compared to an average figure of $10-13 billion reported annually before 2022.
India is the fastest growing and most populous nation in the world. Securing Russian energy resources is key to sustaining such high levels of growth. The Indian economy is projected to post growth of 7.2% this financial year, Reserve Bank of India Governor Shaktikanta Das said on Thursday.
“The energy sector remains a cornerstone of bilateral cooperation,” Tribhuvan Darbari, chairman of the India-Russia Business Council, stated. Addressing the forum he emphasized that India’s “growing energy requirement aligns with Russia’s abundant energy resources.” In 2023, India imported over 43 million barrels of crude oil from Russia, a significant increase from the previous years, he added.
India has not supported the sanctions on Russia despite pressure from Western partners, and has in fact ramped up its purchases of Russian oil. It recently overtook China as the largest buyer of Russian crude. This not only helped the Prime Minister Narendra Modi-led government ensure its commitments to invest in upgrading the country’s infrastructure and provide socio-economic benefits to hundreds of millions of Indians, but made the South Asian nation one of the leading exporters of petrochemicals to Europe. India’s exports of refined oil products to European countries have surged by 2,539 times since 2018, The Print reported earlier this week, citing data from the Ministry of Commerce and Industry.
Indian officials have repeatedly stated that the country’s decision to buy Russian oil, despite Western pressure, has helped prevent a global energy crisis. Petroleum Minister Hardeep Singh Puri emphasized in a recent interview with RT that without Russian oil on the market, global prices would have hit $250-$300 per barrel.
According to Darbari, Indian energy companies’ investments in the Russian hydrocarbon sector will also ensure a stable supply of oil to India, as well as foster the economic development of Russia’s Far East. Indian state-owned firms have invested around $16 billion in oil and gas assets in the Far East and East Siberia, including Sakhalin-1, Vankor and Taas-Yuryakh, and have been considering investing more in Rosneft’s massive Vostok oil project in the Arctic portion of Krasnoyarsk Region. After reaching its full capacity, the project is set to produce 50-100 million tons of oil per year.