OilPrice.com Russia last week announced a major new energy cooperation deal with India that threatens the very core of the U.S.’s fightback strategy against Beijing’s and Moscow’s expansionism in the Middle East and beyond. The main hydrocarbons deal will be for Russia, via oil giant Rosneft, to supply almost 15 million barrels of crude to Indian Oil, by the end of 2022. Given the massive geopolitical ramifications of any sizeable oil deal, it was entirely legitimate for Igor Sechin, Rosneft chief executive officer and close friend of Russian President, Vladimir Putin, to say of the deal that: “The signing of a new oil supply contract confirms the strategic nature of the long-term partnership between Rosneft and Indian Oil.”
The deal takes on even more significance as it was just one part of 28 investment deals between Russia and India signed during the very recent visit of Putin himself to Indian Prime Minister, Narendra Modi. These covered a broad range of subjects, including not just oil, gas, and petrochemicals, steel, and shipbuilding, but also military matters. The opportunities for bleed-through military elements to appear in the oil and gas projects agreed between Russia and India are bad enough from the U.S. perspective. Rosneft’s oil deliveries will be shipped through the Russian Black Sea port of Novorossiisk, with off-loading facilities in India to be built out when required. Putin highlighted: “Both sides reaffirmed their commitment to increasing Russian crude oil production under long-term contracts at preferential prices and increasing LNG [liquefied natural gas] imports to India with the possible use of the Northern Sea Route for energy supplies.” Specifically, added Modi: “We have set a target of US$30 billion in trade and US$50 billion in investment by 2025.”
