Russia Reinforces Energy Partnership with China Amid US Pressure on Indian Oil Trade

Russian President Vladimir Putin has reaffirmed China’s position as Moscow’s principal energy customer, characterising bilateral energy relations with President Xi Jinping as strategic during a video conference on Wednesday. The Russian leader emphasised that Beijing has emerged as the top purchaser of Russian oil and gas since the commencement of military operations in Ukraine.

The timing of the discussion proved significant, occurring two days after United States President Donald Trump announced potential tariff reductions on Indian goods in exchange for New Delhi ceasing purchases of Russian crude oil. Trump indicated Washington could eliminate an additional 25 per cent penalty tariff imposed due to India’s energy cooperation with Moscow.

However, confirmation of any oil purchase cessation from the Indian government remains absent. India has not issued clear indication that this element of the purported Modi-Trump agreement has received formal ratification. Technical considerations present additional complications, as West Texas Intermediate crude is considered excessively light to serve as a viable replacement for Urals crude in Indian refineries, according to analyst June Goh at Sparta Commodities.

Kremlin aide Yury Ushakov emphasised Russia’s leading position in oil and pipeline gas supplies to China, noting that China maintains first position amongst Russia’s foreign trade partners, whilst Russia ranks fifth amongst China’s trade counterparties. Ushakov stated the bilateral discussion addressed objectives for further development of trade and economic ties, particularly within the energy sector.

Kremlin estimates indicate China has purchased in excess of $230 billion of Russian energy resources since the invasion commenced. Putin acknowledged bilateral trade experienced modest decline during the previous year, including corrections in various indicators, but maintained Russia remains amongst the leading energy suppliers to China. The Russian president pledged continued close coordination on multiple issues.

Regarding Indian trade arrangements, Reuters reported that Indian refineries have not received instructions to discontinue Russian oil purchases and await formal governmental determination. Any official suspension would require a transition period for implementation. Trump’s earlier statements may have exceeded the scope of agreements actually concluded with Prime Minister Modi.

Following the Putin-Xi discussion, President Trump held a separate telephone conversation with the Russian leader on Wednesday. The leaders previously spoke by telephone in late November, during which Trump praised exceptionally strong US-China relations. Xinhua News Agency initially disclosed the Trump-Xi communication, though further details have not been released.