Daily Management Review

Russia Urged Deeper Indian Investments In Its Oil And Gas Industry


Russia Urged Deeper Indian Investments In Its Oil And Gas Industry
Russia wants much more Indian investments in its oil and gas sector which have been severely hit by sanctions from Western countries. Moscow is also interested in expanding the sales networks in India, Asia’s third largest economy, of its companies.
The uncalled for invasion of Ukraine by Russia and the severe economic sanctions by the West of the invasion has threatened a severe recession of the Russian economy because of potential dire economic conditions in the country seen last in 1991 when the erstwhile Soviet Union collapsed.  
India has been urged by a number of its western allies to publicly criticise the Russian invasion of Ukraine after India chose to abstain from voting against Russia, a long time partner for supplying of arms, at the United Nations.
"Russia's oil and petroleum product exports to India have approached $1 billion, and there are clear opportunities to increase this figure," said Russia's Deputy Prime Minister Alexander Novak, according to a statement shared by Russia's embassy in India late on Friday.
"We are interested in further attracting Indian investment to the Russian oil and gas sector and expanding Russian companies' sales networks in India," Novak told Indian Minister of Petroleum and Natural Gas Hardeep Singh Puri.
Earlier this week, import of Russian oil and gas was banned by the United States while the United Kingdom has said it will reduce the amount of Russian fuel it imports in a phased manner. Experts anticipate that these tough economic decisions will disrupt the global energy market further. Russia is the second-largest exporter of crude oil in the world.  
Stakes in Russian oil and gas fields are held by Indian state-run companies, while a majority stake in Indian refiner Nayara Energy is held by Russian companies including Rosneft. Russian oil and gas are also purchased by some other Indian companies.
Novak said that Moscow anticipates that it will continue to have deeper cooperation with India in the area of civilian nuclear power, which includes the construction of new nuclear power units at a nuclear power plant in the south Indian town of Kudankulam.