India's cumulative investment in oil & gas projects in Russia exceeds $15 billion.
It is the single largest destination of Indian overseas investment in the oil & gas sector.
Indian Oil Minister Puri noted:
- Russia is the largest investor in India's energy sector and India has made significant investments in the Russian oil & gas sector
- We reviewed the ongoing investments by Indian oil & gas companies in the upstream sector in Russia, supply of LNG & crude oil from Russia,
- We also reviewed Russian investments in India's downstream sector
In 2020, state-owned Indian IOC signed a deal with Rosneft for the annual purchase of 2 million tonne of crude oil.
This is the 1st-ever annual oil purchase deal between the 2 countries.
India is also looking to import LNG from Russia and is looking for opportunities for involvement of Indian companies in infrastructure development projects in the Siberian and Arctic region, the Indian oil ministry had said at the time of signing of the deal with Rosneft in February last year.
India traditionally relies on the Middle East for the bulk of its oil & gas needs and is now exploring sources from Russia to the US to diversify that basket.
India is looking to bolster its economic presence in the Russian Far East.
During a 2019 visit to Vladivostok, PM Narendra Modi announced that New Delhi would provide a $1 billion loan to aid the region's economic development.
The Fast East has huge oil and gas reserves and New Delhi is interested in securing a pie of that.
