Alexander Pasechnik,Head of Analytical Department, National Energy Security Fund

Indian Prime Minister Narendra Modi paid an official visit to Russia on July 8–9. Russian President Vladimir Putin met with him on July 8 at the Novo-Ogaryovo residence near Moscow in an informal setting. And the next day, July 9, negotiations between the leaders of Russia and India took place in the Grand Kremlin Palace.

According to the Kremlin press service, the prospects for further development of “traditionally friendly Russian-Indian relations, as well as current issues on the international and regional agenda” were discussed. A joint statement by the leaders of Russia and India on the development of strategic directions of Russian-Indian economic cooperation until 2030 was also adopted and a number of other bilateral documents were signed. In addition, the Indian Prime Minister accepted Vladimir Putin’s invitation to the BRICS summit in Kazan, which is scheduled to be held in the fall.

Of course, the oil and gas track was widely discussed. During the negotiations, N. Modi thanked V. Putin for his support during the global energy crisis: “Thanks to our agreements in the energy sector, we were able to provide our citizens with fuel. The whole world must recognize that thanks to Indian-Russian cooperation in the energy sector, we have ensured stability in the global market.”

Certain specifics were announced regarding the prospects for interaction between the two countries in the fuel and energy sector. As Russian Deputy Prime Minister Alexander Novak told TASS, Russia and India “will be able to conclude a long-term agreement for the supply of oil, both countries are considering this possibility.” A. Novak explained that the two countries are interested in long-term cooperation; the parties have a joint project for an oil refinery. “We are also interested in long-term cooperation regarding supplies; such forms of agreement are certainly being considered,” the Russian Deputy Prime Minister emphasized.

Although, according to the list of participants published on the Kremlin website, Alexander Novak was not present at the Russian-Indian negotiations, Igor Sechin, the chief executive officer of Rosneft, appeared in it.

The details of the promising oil deal, due to the Western sanctions regime against the Russian Federation, are logically not advertised by the parties. But here Reuters is trying to “succeed”: with reference to certain “competent sources”, the agency has already reported on the details of the planned agreement, noting that state-owned oil refining companies in India are negotiating with Russia on concluding a long-term agreement on oil imports. But the parties have not yet agreed on the terms of the deal – in particular, the currency in which payment will be made. Indian private oil refining companies may later join the negotiations, Reuters clarified.

In May, this agency, citing its sources, reported that Reliance Industries signed an annual contract with Rosneft to purchase at least 3 million barrels of oil per month in rubles, mainly of the Urals variety. And the transition to payment in rubles with foreign counterparties is Russia’s response to Western sanctions, the material noted then. The Rosneft press service, in response to a Reuter’s request, limited itself to a laconic thesis: “India is the concern’s strategic partner.”

The current cooperation between Moscow and New Delhi regarding oil supplies is very progressive. According to the analytical company Kpler, India imported a record volume of Russian Urals oil in June – 1.6 million barrels per day (b/d). The previous record was set in May. Reliance became the largest buyer of Russian oil for the first time since April 2023, importing 0.545 million bpd. Thus, the company last month overtook the state concern Indian Oil Corporation, which usually led in oil purchases from the Russian Federation.

Another promising area of ​​cooperation between Moscow and New Delhi is peaceful atom. It is no coincidence that the program of N. Modi’s visit to Russia included a visit to the Atom exhibition pavilion at VDNKh. At the “Modern Nuclear Industry” exposition, Vladimir Putin and Narendra Modi examined interactive stands dedicated to Russian-Indian cooperation in the field of nuclear energy. Afterwards, the leaders of Russia and India watched a video about the construction of the Kudankulam nuclear power plant. So far, two power units of this nuclear power plant are successfully operating in India – No. 1 and No. 2 – they were connected to the country’s national power grid in 2013 and 2016, respectively, and are operating normally.

Kudankulam is the country’s largest nuclear power plant and the flagship project of Russian-Indian energy cooperation. The station is located in southern India, in the state of Tamil Nadu. Its customer and operator is the Indian Atomic Energy Corporation. The general contractor is JSC Atomstroyexport (Rosatom enterprise). The construction of the Kudankulam NPP involves the construction of six power units with VVER-1000 type reactors with a total installed capacity of 6 thousand MW.

In addition, according to Rosatom’s information, Russia and India are discussing the construction of six more high-power nuclear power plant units at the new site, as well as low-power nuclear power plants (LPNPs).

Washington is greatly irritated by the stable interaction between Moscow and New Delhi in the energy sector. The US authorities are trying to slow down this cooperation by tightening the sanctions regime. But restrictions have not yet been introduced specifically against the state corporation, but some of its dependent structures are already under sanctions. For example, on June 12, the US Treasury announced the eighth package of sanctions against Rosatom structures, including the Kirov-Energomash plant, JSC NIIP and NPP Inzhekt in the list of restrictions. This is the eighth sanction action of the American financial agency to include subsidiaries of the state corporation Rosatom in the “block list”.

Rosatom General Director Alexey Likhachev in a recent interview with the Moscow. Kremlin. Putin program recalled that the Americans are introducing sanctions against Russia in order to prevent the construction of nuclear power plants. He concluded: “Sanctions interfere with mutual settlements, and a lot of little things come up; well, it’s as if the dogs are barking, but the caravan is moving on.”