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India-Russia Energy Deals to Reduce India's Oil Dependency

India and Russia announced several energy sector deals last month, which will help India reduce its reliance on oil, said the Indian Minister of Petroleum and Natural Gas, Dharmendra Pradhan.

Flag of Russia and India
Flag of Russia and India

India Seeks to Diversify Energy Mix

India, the world's third-largest oil consumer, and importer, imports around 80% of its oil needs. The country plans to bring that down to 67% by 2022 and increase the share of natural gas from 6% to 15% by 2030. The Indian government aims to better manage its finances by diversifying its energy mix.

India-Russia Energy Agreements

The energy-related deals between India and Russia include: Petronet LNG agreeing to buy liquefied natural gas from Novatek and invest in the company's future projects, H-Energy looking to buy LNG from Novatek on a long-term basis, and Coal India signing a deal to mine coking coal in Russia. These deals and investments aim to reach the goal of $30 billion in annual trade between the two countries by 2025.

India's Finance and Energy Market

India's large oil imports, mostly from the Middle East, make the country vulnerable to crude price spikes. The country is adding more gas to its energy mix and expanding its use of renewable energy to prepare for alternative methods, said Pradhan. India is a growing energy market with geopolitical influences and price volatility challenges.