US pressure on India to shun Russian oil

The US has pressed India to halt purchases of discounted Russian oil, accusing New Delhi of helping fund Moscow’s war effort. In August, Trump imposed a 50% tariff on Indian imports to increase pressure over the issue.

India rejected the charge, saying it follows international sanctions and prioritizes its national interest and energy security. But its position could become more complicated after new US sanctions on Russian oil majors Rosneft and Lukoil. Indian officials said the country will avoid buying oil from sanctioned producers, while keeping options open with companies not targeted by the restrictions.

“India will certainly underscore that there is no Indian desire to cut off energy supplies from Russia completely,” said Harsh Pant, vice president of foreign policy at the Observer Research Foundation, a New Delhi-based think tank.

Pant said future imports will depend “on the market forces and how effective sanctions are in weaning away Indian private sector or Indian state-run companies from Russian energy sources."

Energy cooperation is expected to feature prominently at the summit, including India’s investments in Russia’s Far East and expanded civil nuclear collaboration. The Kudankulam nuclear power plant in the Indian state of Tamil Nadu, built with Russian assistance, remains the centerpiece of that partnership, and officials said talks continue on localized equipment manufacturing and potential joint projects in third countries.

Defense cooperation at the core

India is expected to push Russia for faster delivery of two further S-400 surface-to-air missile squadrons, after receiving three under a 2018 deal worth about $5.4 billion. The delay has been tied to supply chain disruptions linked to the war in Ukraine.

Indian authorities are also likely to explore the possibility of acquiring additional S-400 units or an upgraded variant, though no contract or announcement is expected.

Indian defense planners say the S-400 proved effective during a brief military standoff with Pakistan in May.

“The meeting will focus on broader elements of institutional cooperation on defense between our two sides and will try to ensure that delivery delays are ended. Potentially, S-400 additional is not ruled out, but don’t expect any announcement during the visit,” India’s Defense Secretary Rajesh Kumar Singh said at a security conference in New Delhi last week.

Talks are also expected on upgrading India’s Russian-made Su-30MKI fighter jets and accelerating deliveries of critical military hardware, as well as improving coordination on joint exercises and disaster relief.

Despite India diversifying its procurement of military hardware over the last few years, Russia continues to be its biggest supplier. Moscow is keen on selling its stealth fighter jet Su-57 to India, but New Delhi has kept its options open to other foreign suppliers as well.