NEW DELHI: As trade pact negotiations gain traction, India is pressing for a fair deal and clearer signals from Washington on sanctions related to Russian oil. In a key meeting India’s Ambassador to the US, Vinay Mohan Kwatra, met US Deputy Secretary of Energy James Danly to review the India–US energy security partnership and recent trends in bilateral energy trade.
Sources said the talks also touched on how impending US sanctions could affect global oil flows, even as supplies remain stable. “These are early days and we need more clarity on the sanctions — that’s part of the ongoing conversation with the US. Our energy security is paramount and guided by market conditions, national interests, and domestic requirements,” a source familiar with the issue said.
India’s attention is on US sanctions against Rosneft and Lukoil, which supply most of its Russian oil, and the possible ripple effects of secondary sanctions. The fine-print is awaited.
Germany recently took temporary control of three Rosneft subsidiaries to secure its own energy supplies -- a move that underscores the lack of a uniform Western approach to Russian oil sanctions. Meanwhile, the Trump administration’s renewed sanctions on Moscow are being viewed as a pressure tactic as well.
Sources said a Russia–Ukraine ceasefire would represent the best-case scenario for India, potentially paving the way for lifting the additional 25% tariff on Russian crude imposed by the US.
With fears of secondary sanctions looming, India’s imports of Russian oil are expected to come down gradually, a shift that could push New Delhi to source more energy from the US as well. Sources believe this diversification would help offset tariff pressures and strengthen the foundation for an energy-focused component in the trade pact.
While Nayara Energy maintains a term contract for Russian crude, most of India’s Russian oil purchases are spot deals. Sources noted that while sufficient alternative supply exists, Russia remains a key partner. They added that Washington is unlikely to push sanctions to the point of triggering a price surge, given the potential impact on global markets, particularly on supplies to China and India.
Crude prices rallied sharply on Friday, with Brent at $66.42, after Washington sanctioned Rosneft, Lukoil, and Sovcomflot, removing nearly 4.5 million barrels per day from global markets. On October 23, Trump announced sanctions on Rosneft and Lukoil, giving companies until November 21 to wind down transactions. Earlier, on October 9, Washington imposed sanctions on Serbia’s Russian-owned oil company NIS, one of Russia’s last remaining energy assets in Europe.
Kwatra meets Lockheed CEO
Ambassador Kwatra also met Lockheed Martin CEO Jim Taiclet and had a ‘productive’ discussion on bilateral defence industrial collaboration and opportunities under India’s Atmanirbhar Bharat initiative
