Big deal is going to happen between India and Russia, preparations start

New Delhi. The ongoing tension and war situation around the world has changed the equations of the energy market. At such a time, India is looking for new options to secure its energy needs. In this context, preparations for a big energy deal between India and Russia have intensified, which may impact global politics and economy in the future.

Concern increased due to Middle East crisis

Oil supply has been affected due to the ongoing conflict in the Middle East. Especially important sea routes like the Strait of Hormuz have been affected, which is considered a major oil supply route in the world. This situation has posed a big challenge to energy security for countries like India.

Russia becomes a reliable option

India has been obtaining a major part of its requirement in the form of oil from Gulf countries. But looking at the current situation, Russia is now emerging as a strong option. Talks have started between the two countries regarding liquefied natural gas, which is happening for the first time in recent times.

Increase in crude oil imports

According to reports, India is now considering significantly increasing Russia’s share in its total oil imports. This share may reach around 40 percent in the coming time. Russia has already been providing oil at concessional rates, which can prove to be a relief for India in the era of inflation.

Tension may increase with America

Differences have already emerged between India and America regarding Russian oil. In such a situation, if India increases its energy partnership with Russia, it may upset America. However, considering the current circumstances, India is giving priority to its national interests.

Big step towards trade in Rupee and Ruble

Both the countries are also emphasizing on increasing transactions in local currencies to strengthen trade. This will reduce dependence on the dollar and will give a new direction to economic cooperation. Apart from energy, India and Russia are also planning to expand partnership in other sectors like power, aviation and trade. This is expected to further strengthen the relations between the two countries.