While Germany is discussing a $10 billion energy contract with India, India is also negotiating a crude oil deal with Russia.
India is striking deals on both sides of the divide as energy alliances shift as a result of Russia’s assault on Ukraine.
Germany and India signed bilateral agreements worth $10.5 billion on Monday to increase renewable energy, as German Chancellor Olaf Scholz seeks Indian support for the European Union’s plans to ban Russian oil.
Simultaneously, India and Russia are negotiating a deal for 20 million barrels of crude oil from Rosneft, the Russian state-owned oil company, with India seeking a significant discount.
According to Indian media, discussions are currently taking place about alternate payment systems that would avoid sanctions.
Despite the potential impact of sanctions, New Delhi hopes to “stabilise its economic engagement with Russia,” according to The Tribune.
“There is a possibility that these sanctions might impact us and that is why we are having inter-ministerial discussions and other conversations to see how we can keep our economic interactions with Russia stabilised and also to see how we can ensure our interests are not affected,” the daily quoted MEA spokesperson Arindam Bagchi as saying.
India has maintained its “neutrality” on Ukraine, with Prime Minister Narendra Modi recently stating that there can be no winner in this conflict.
While the United States has promised to assist India in diversifying away from Russian oil, the substantially discounted prices that have come from self-sanctioning have made arrangements with Moscow far too appealing for New Delhi to turn down.
According to Reuters, India bought twice as much Russian oil in March and April than it did in the entire year of 2021.
In the game of shifting energy alliances, Europe is looking for new opportunities in Asia, particularly in Japan, where an EU-Japan summit will be held next week.
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