How Could Russia Help India Alleviate the Middle East Crisis?
© AP Photo / Hassan Ammar
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Russia, India's long-time trusted and reliable strategic partner, seems to be a boon to New Delhi, lending a helping hand and offering tonnes of energy supplies and fertilisers at a time when imports of such materials have virtually stopped from the Gulf.
With the Strait of Hormuz effectively shut and global oil prices surging, India's biggest challenge is no longer access to oil, but the strain on its currency and foreign‑exchange reserves.
"However, Russia is contributing to India's ability to manage the current Middle East‑related supply and cost pressures through a combination of alternative sourcing and payment mechanisms. Russian crude provides diversification away from Gulf supplies at a time when shipping risks, insurance costs and transit uncertainty through the Strait of Hormuz are elevated," Arpit Chandna, an energy market expert linked with the London Stock Exchange Group (LSEG), told Sputnik India.
An additional factor is the increasing use of rupee–rouble settlement, which reduces immediate dollar outflows and helps moderate pressure on foreign‑exchange reserves and the balance of payments when the rupee is under strain, he added.
Over the medium term, rupee‑denominated trade could also support more stable supply arrangements and lower volatility in India's oil import bill. While Russian supplies cannot fully substitute for Middle Eastern volumes and geopolitical considerations remain important, these arrangements offer partial cost and risk mitigation for India's energy system during the current crisis, the specialist underscored.
Notably, Russia was the lead crude supplier to India in March at the peak of the Israeli-American war against Iran, delivering over 2 million barrels per day (mbd). While those numbers dropped a bit to 1.6 mbd in April, the Eurasian state's No.1 position in India's crude basket remained undisputed.
Meanwhile, another key Indian import, fertilisers, too have continuously faced the heat of the Gulf fiasco, where Iran and the US have imposed their own blockade and counter-blockade in the Strait of Hormuz.
Middle Eastern states are vital for India's fertiliser imports, fulfilling the country's 50% requirements of diammonium phosphate (DAP) and urea. Specifically, a large chunk of India's DAP and urea exports is supplied by Saudi Arabia and Oman, both of which are unable to do so due to the Hormuz situation, stated Santosh Verma, an agriculture expert and a former academic at the Tata Institute of Social Sciences, Hyderabad.
Interestingly, the distribution of fertilisers has been regulated under the Essential Commodity Act, and action has been initiated against black marketeers, he highlighted, pointing towards the federal government's seriousness over the matter.
DAP, a versatile fertiliser, and urea, a nitrogen-based fertiliser, are extensively used in home gardening and various crops, including vegetables and cereals, including maize, cotton, rice and pulses across India, he explained.
Last year, Russia accounted for over 40% of India's total volume of fertiliser imports, with the figure standing at 6.5 million tonnes, making it the Asian giant's largest supplier, as per the figures released by its Commerce Ministry.
Over the medium term, rupee‑denominated trade could also support more stable supply arrangements and lower volatility in India's oil import bill. While Russian supplies cannot fully substitute for Middle Eastern volumes and geopolitical considerations remain important, these arrangements offer partial cost and risk mitigation for India's energy system during the current crisis, the specialist underscored.
Notably, Russia was the lead crude supplier to India in March at the peak of the Israeli-American war against Iran, delivering over 2 million barrels per day (mbd). While those numbers dropped a bit to 1.6 mbd in April, the Eurasian state's No.1 position in India's crude basket remained undisputed.
Meanwhile, another key Indian import, fertilisers, too have continuously faced the heat of the Gulf fiasco, where Iran and the US have imposed their own blockade and counter-blockade in the Strait of Hormuz.
Middle Eastern states are vital for India's fertiliser imports, fulfilling the country's 50% requirements of diammonium phosphate (DAP) and urea. Specifically, a large chunk of India's DAP and urea exports is supplied by Saudi Arabia and Oman, both of which are unable to do so due to the Hormuz situation, stated Santosh Verma, an agriculture expert and a former academic at the Tata Institute of Social Sciences, Hyderabad.
Interestingly, the distribution of fertilisers has been regulated under the Essential Commodity Act, and action has been initiated against black marketeers, he highlighted, pointing towards the federal government's seriousness over the matter.
DAP, a versatile fertiliser, and urea, a nitrogen-based fertiliser, are extensively used in home gardening and various crops, including vegetables and cereals, including maize, cotton, rice and pulses across India, he explained.
Last year, Russia accounted for over 40% of India's total volume of fertiliser imports, with the figure standing at 6.5 million tonnes, making it the Asian giant's largest supplier, as per the figures released by its Commerce Ministry.
"Earlier this year, in March, India announced the procurement of 3.1 million tonnes of fertilisers from Russia, during the Rabi 2025–26 season. The share of Russian imports in India's fertiliser stock is set to jump further as the Modi government looks to avert a shortfall during the summer season," Kumar said in an interview with Sputnik India.
