Tensions in the Middle East are driving India into the arms of its ‘oldest and natural ally’ Russia for fuel. Experts claim that New Delhi must use the opportunity to aggrandize the fuel partnership and bilateral ties with Moscow
New Delhi: The repercussions of tensions rife in the Middle East involving Iran can be witnessed far and wide. With the black gold at stake, major Asian nations, who look towards the horizon in the Middle East are now feeling the pinch. India is one such nation. However, China which also fills its oil tanks from the supplies of the Gulf nation is yet to endure any discomfort.
Mentioning both Himalayan neighbors – India and China – is important because the two major Asian powers have to buy most of their oil requirements from Iran. However, due to the tensions after the assassination of Iran’s top commander Qaseem Soleimani, rise in crude oil prices is being witnessed daily. The impact of the rise in oil prices can be clearly seen in the economies of these countries.
India Tops Iranian Oil Market
Bear in mind that before the sanctions were imposed, New Delhi purchased around 70 percent of its oil requirements from Tehran. However, India has stopped oil purchase from Iran, soon after its friends from the west expressed their displeasure. Meanwhile, India’s concerns regarding oil supply due to tensions in the Middle East are no secret. Other than this, if the history of the entire Middle East region is taken into account, such geopolitical winks have not developed there recently, rather than the ones stretched by the west decades ago.
New Delhi, Moscow Oil Partnership
In order to end India’s dependence on the Middle East, New Delhi has initiated talks with Moscow regarding oil supply. The talks between the foreign ministers of the two countries last week have been quite significant in this regard. This issue was quite prominent between the two countries during these talks. The statement by Union Petroleum Minister Dharmendra Pradhan in this regard wherein he said that Russia can be a major oil partner of India in the future also holds great importance. According to experts, Russia’s West Siberian Basin can easily quench India’s fuel thirst, while rejuvenating the strained and parted relations with its ‘oldest and natural ally’ – Russia.
Alternate Sources
Bear in mind that amid the escalating diplomatic tension in the Middle East, India has started feeling a greater need to locate an alternative source of oil. There were talks between Prime Minister Narendra Modi and Russian President Vladimir Putin in 2019 in order to increase crude oil trade and partnership. During the Modi-Putin bonhomie, the two countries had also inked three major agreements regarding the energy sector. Talking of crude oil supply to India, Russia is quite lagging in this as of now.
Vladivostok – Chennai Maritime Route
A major point regarding Russia is also that India’s Oil and Natural Gas Corporation [ONGC] is also a partner in Russia’s Sakhalin oilfield. However, the crude oil supply from Russia is a bit expensive as compared to other countries. The biggest reason for it is the high cost of transportation incurred by it. Thus, New Delhi and Moscow are currently engaged in serious deliberations over developing maritime route from Russian city Vladivostok to Chennai port. Upon the development of this route, Liquefied Natural Gas (LNG) along with crude oil can also be supplied from Russia. Global fuel reports indicate that upon the start of oil trade between the two countries, the target of $30 billion bilateral trade by 2025 can also be easily achieved by New Delhi and Moscow. Presently, there is a bilateral trade of nearly $11 billion between India and Russia.
