India Russia Agree on Long-Term Crude Oil Supply Deal
(Source: Page 1, The Hindu UPSC IAS Edition, 26 June 2025)
Also Read: The Indian Express Editorial Analysis: 25 June 2025
Also Read: The Hindu Editorial Analysis: 25 June 2025
| Topic: GS Paper 2 (International Relations), GS Paper 3 (Energy Security) |
| Context |
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Key Features:
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Multi-year agreement securing discounted crude supplies from Russia.
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Bilateral transactions in national currencies (INR and RUB) to reduce dollar dependence.
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Inclusion of logistics, shipping, and storage infrastructure support.
Strategic Significance:
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Enhances India’s energy security amidst rising global oil prices.
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Deepens strategic ties with Russia despite Western pressure.
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Diversifies India’s energy sources beyond West Asia.
Challenges:
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Risk of secondary sanctions and financial backlash from the West.
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Navigating global perception of energy partnerships with a sanctioned nation.
Conclusion/Way Forward:
India’s pragmatic foreign energy policy balances realpolitik with national interest. The deal strengthens energy resilience but must be complemented by expansion in renewables and diversification of suppliers.
| Practice Question: (GS-2 | 15 Marks | 250 Words) Critically analyze the strategic and economic implications of India’s long-term crude oil partnership with Russia in the backdrop of global geopolitical tensions. |
