In the backdrop of punishing US tariffs on India, Petroleum and Natural Gas Minister Hardeep Singh Puri on Monday announced a “historic first” deal with the US.
India’s state-owned oil companies signed a 1-year agreement to import nearly 2.2 million tonnes of American LPG. The deal which comes into effect in 2026 will account for nearly 10% of India’s annual LPG imports.
But, look closer and you get a sense that India’s move is nothing more than an olive branch.
That’s because, on the same day, External Affairs Minister S Jaishankar met with his Russian counterpart - Sergey Lavrov - in Moscow. The bilateral talks, Jaishankar said, were centered around trade and investment, energy, and technology.
Remember, India is navigating a complex geopolitical environment. Countries are having to choose sides between the cold war superpowers. US President Trump is punishing nations that side with Russia. India, for example, is facing 50% tariffs on exports to the US, because it's buying Russian oil.
But, will the LPG deal ease trade tensions between India and the US?
Negotiations on a Bilateral Trade Agreement (BTA) have been going on for months. Commerce Secretary Rajesh Agarwal on Monday declared that Phase 1 of the deal - the part that addresses reciprocal tariffs - is more or less near closure.
That does not mean India is giving up on its strategic ties with Russia.
Jaishankar met with Lavrov to lay the foundation for Russian President Vladimir Putin’s India visit next month. On the sidelines of the meet, Lavrov spoke about mechanisms to safeguard India-Russia trade. He said Moscow was taking measures to ensure mutual trade was not hindered by "illegitimate measures” - clearly referring to Western sanctions on Russia.
Jaishankar, too, defended Indo-Russian ties. He called the relationship vital for global stability.
The question now then is - will the LPG deal be enough for Trump to ignore the Delhi-Moscow camaraderie?
