India turns to Russia for gas: Could it cut costs or trigger US sanctions? WION Decodes

India is exploring the possibility of importing natural gas from Russia as New Delhi looks to widen its energy options and build greater resilience against global supply disruptions. This comes as recent disruptions in West Asia have exposed how vulnerable energy flows can become when critical routes are affected. India says it is responding by diversifying suppliers and routes. In that context, Russian gas could offer another source of supply.

But there is a larger question: does adding Russia to India's gas basket make the country more energy secure, or does it simply replace one geopolitical risk with another?

The case for Russian gas

India's natural gas consumption is already substantial. The government says the country consumes about 189 MMSCMD of natural gas, while 97.5 MMSCMD is produced domestically. During the recent West Asia disruption, around 47.4 MMSCMD of supply was affected, forcing companies to look for alternative suppliers and routes.

That is where another major supplier like Russia could matter. Moscow has significant gas resources and has indicated potential for LNG exports to India. A Russian supply arrangement could therefore give Indian buyers another option as domestic gas demand grows.

There is also a broader infrastructure push underway. The government is trying to expand pipeline networks, city gas distribution and PNG connectivity, while positioning natural gas as a transition fuel for cooking, transport and industry.

So the logic is straightforward: more gas sources + more infrastructure = greater room to manoeuvre during a supply shock.

Could it actually make gas cheaper?

Potentially, but this is where the fine print matters. Adding Russian gas could increase competition among suppliers and give Indian buyers greater bargaining power. If the gas arrives at a competitive price, industries that rely heavily on natural gas could benefit.

That could include fertiliser producers, manufacturers, CNG operators and city gas networks.

But a Russian deal would not automatically mean cheaper gas for Indian consumers. The final price would depend on the contract, LNG prices, transportation costs, shipping and insurance, as well as the route used to bring the gas to India.

In other words, Russian gas could improve India's negotiating position, but cheaper CNG or PNG is not guaranteed.

The West Asia crisis is the bigger lesson

The recent disruption has shown why India is so focused on diversification. The government says India now sources crude from around 40 countries, with about 70 per cent of crude imports arriving through routes outside the Strait of Hormuz, compared with around 55 per cent earlier.

Natural gas has faced its own disruption. India has already turned to alternative suppliers and routes and secured LNG cargoes from new sources. The government has also prioritised supplies to sectors such as domestic PNG and CNG, while reducing allocations to some industrial users.

That experience strengthens the argument for having more than one major source of gas.

Buying from Russia comes with its own risks

This is where India's energy strategy gets complicated. Greater reliance on Russian energy could expose Indian buyers to sanctions and other geopolitical restrictions imposed by Western countries.

On Friday (Aug 7), the US Senate passed a bipartisan bill that could hit countries buying Russian oil and gas with tariffs of up to 100%, putting major buyers such as India and China in the spotlight. The legislation, passed 86-11, has been renamed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 in honour of Republican Senator Lindsey Graham. It now heads to the US House of Representatives, which reconvenes on August 31.

There is another risk too: overdependence. India's objective is diversification. Becoming heavily dependent on Russia would undermine that very strategy.