Energy cooperation is emerging as one of the most important pillars of India-Russia relations, with New Delhi and Moscow discussing ways to expand collaboration across the sector. The Ministry of External Affairs has highlighted the long-running partnership in nuclear energy and identified the Kudankulam nuclear power project as a major example of bilateral cooperation.
The latest comments came shortly after Prime Minister Narendra Modi met Russian President Vladimir Putin on the sidelines of the BRICS Summit in New Delhi. The two leaders reviewed cooperation across energy, defence, trade, space, infrastructure and other areas, while reaffirming efforts to deepen the broader strategic partnership.
Kudankulam represents one of the most visible long-term components of the energy relationship. Beyond nuclear power, the two countries have extensive economic links involving oil and gas, petrochemicals and other energy-related investments. India’s official bilateral brief lists Russian investments in India across oil and gas, petrochemicals, banking, railways and steel, while Indian investments in Russia include oil and gas and pharmaceuticals.
Oil has added another major dimension to the relationship in recent years. India has significantly increased purchases of Russian crude, particularly after disruptions in global energy markets following the Ukraine conflict. Reuters reported that Russian crude accounted for about 51% of India’s total crude imports in July 2026, although purchases declined in August as discounts narrowed.
That dependence also explains why energy remains central to India’s calculations. For a country that relies heavily on imported crude, maintaining access to diversified energy supplies can directly influence inflation, industrial costs and economic stability.
At the same time, India and Russia are seeking to broaden their economic relationship beyond traditional energy and defence cooperation. Both governments are targeting $100 billion in bilateral trade by 2030, alongside a $50 billion investment target.
The evolving energy partnership therefore reflects a larger transformation in India-Russia relations. Oil remains important, but nuclear power, industrial cooperation, investment and connectivity are increasingly being added to the equation.
For New Delhi, the objective is not simply to preserve an old partnership. It is to convert decades of political trust into a wider economic relationship capable of adapting to a rapidly changing global energy and geopolitical environment.
