India faces balancing act on Russia amid US trade talks

India will have to contend with an increasingly delicate balancing act between negotiating a trade deal and repairing ties with the US and maintaining its legacy relationship with Russia ahead of a planned visit by President Vladimir Putin in December, according to people familiar with the matter.

- Rezaul H Laskar

Russian President Vladimir Putin with Prime Minister Narendra Modi at the SCO summit held in China this September.

(REUTERS)

The situation has been complicated by US President Donald Trump's decision to sanction Russian oil giants Rosneft and Lukoil— his first such action against Russia in his second term — amid growing frustration with the lack of progress in his efforts to end the war in Ukraine. These sanctions are set to kick in on November 21, barely a fortnight before Putin is expected in India for an annual summit.

With Indian refiners reviewing Russian oil purchases after the announcement of the sanctions, Reliance Industries, the top importer of Russian oil, has said it will adapt “refinery operations to meet the compliance requirements’.

“There has been a reduction in Russian oil purchases but the possibility of it going down to zero looks unlikely,” one of the people cited above said on Monday on condition of anonymity.