India-Russia energy ties widen beyond crude to gas, nuclear and petrochemicals
India and Russia are working on a comprehensive energy framework agreement that extends beyond crude oil exports into natural gas supply, nuclear energy cooperation and petrochemical investment. The deal is at the centre of India's energy diversification strategy amid the Hormuz crisis.
According to officials at India's Ministry of Petroleum cited by the Economic Times, New Delhi and Moscow are negotiating a comprehensive energy framework agreement that extends beyond crude oil exports to cover natural gas supply, nuclear energy cooperation and petrochemical investments. Talks are entering their final phase before Russian Deputy Prime Minister Alexander Novak's visit to New Delhi on 3-5 June.
Indian Petroleum Minister Hardeep Singh Puri said the planned package would include annual LNG supply of 18 million tons, two additional reactors at Kudankulam and a $2.4 billion petrochemical complex on the Gujarat coast. Russian Deputy Energy Minister Pavel Sorokin said long-term contracts with Indian Oil Corporation and Reliance Industries will be extended by 18 months. Bharat Petroleum chief executive G Krishnakumar said India is exploring an option to purchase up to 2.1 billion cubic metres of LNG per day from Sakhalin to bolster energy security against the Hormuz shock.
US Deputy Treasury Secretary Wally Adeyemo reminded counterparts of the importance of sanctions compliance mechanisms, while Indian Foreign Minister S Jaishankar said 'energy security must be assessed independently of sanctions objectives'. Brent crude trades at $99.28, and Indian Petroleum and Natural Gas Regulatory Board chair Sanjeev Sahai said any signing could be discussed at the 12 June G7 summit.
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