India Eyes LNG Deal with Russia After Oil Pact, Defies U.S. Pressure (Image Source: AI Generated Image)
India and Russia are moving closer on energy ties, signaling another challenge for the United States. After striking a crude oil deal, Moscow is now looking to sell liquefied natural gas (LNG) to New Delhi and expand cooperation in nuclear energy. The announcement comes just after U.S. President Donald Trump imposed an extra 25% tax on India over Russian oil imports, a move the Kremlin has denounced as illegal. Despite Washington’s warnings, Russian officials in Delhi said supplies to India will continue, with both nations confident of keeping energy trade steady.
Currently, there is some strain between the U.S. and India regarding India’s oil purchases from Russia. In such a situation, Russia’s statements carry significant weight. Russia wants to further strengthen its relations with India, particularly in the energy sector. LNG is a type of gas that is cooled into liquid form so it can be transported easily from one place to another. India is the world’s third-largest importer of petroleum. Since the start of the war between Russia and Ukraine, India has significantly increased its oil imports from Russia. The main reason for this is the substantial discount available on Russian crude oil.
Evgeny Griva, Russia’s Deputy Trade Representative in India, said in New Delhi that India’s imports of Russian crude are likely to remain at current levels. Griva said Russia sells oil to India at nearly a 5% discount, leaving Asia’s third-largest economy with limited alternatives. He also added that trade between the two countries is expected to grow by about 10% annually.
On Tuesday, U.S. Treasury Secretary Scott Basent once again threatened to raise taxes on India’s imports. He said the tax was imposed because of purchases of sanctioned Russian oil. He further claimed that India is profiting from these oil imports and that some of India’s wealthiest families are benefiting from it.
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