US forcing India to buy LNG at exorbitant prices, says Putin aide on Trump’s moves against Russian energy
Russian Foreign Minister Sergei Lavrov on Monday accused the United States of trying to block India and other countries from buying Russian oil, Sputnik reported. Speaking in an interview with TV BRICS, Lavrov said Washington is using “coercive” measures such as tariffs, sanctions, and direct prohibitions to achieve economic dominance. Lavrov referred to the peace talks in Alaska last year and said the US had presented a proposal on Ukraine, which Russia accepted. “They (US) tell us that the Ukraine problem should be resolved. In Anchorage, we accepted the US Proposal. The US position was important to us. By accepting their proposal, we seem to have completed the task of resolving the Ukrainian issue and moving on to a dull-scale, broad-based and mutually beneficial cooperation. So far, the reality is quite the opposite. New sanctions are imposed, a ‘war’ against tankers in the open sea is being waged in violation of the UN Convention on the Law of the Sea,” Putin’s aide said.
India seeks to buy LNG from Azerbaijan
India is seeking to purchase liquefied natural gas (LNG) from Azerbaijan, said head of the LNG division of India’s Bharat Petroleum during an interview with The Hindu newspaper on the sidelines of India Energy Week held in Goa. The Bharat Petroleum executive noted that India’s state-owned oil refining company is holding talks with the State Oil Company of Azerbaijan Republic (SOCAR) on the purchase of liquefied natural gas, News.Az reports. At the same time, the company plans to buy liquefied petroleum gas (LPG) from the United States at lower prices in order to diversify supplies and has announced a tender to that effect.
India’s Russian oil buy to dwindle
India is likely to begin scaling back its crude oil purchases from Russia under an agreement reached with the United States in exchange for lower trade tariffs, sources said, adding that these imports will continue for now, as refiners like Nayara Energy have limited alternatives. President Donald Trump on Friday signed an executive order rescinding a punitive 25 per cent duty on all imports from India, saying the move followed New Delhi’s commitment to stop imports of Russian oil. While Indian refiners, which process crude oil into fuels such as petrol and diesel, have not received any formal directive to halt Russian purchases, they have been informally advised to begin scaling back buys from Moscow, three sources with knowledge of the matter said. Most refiners will continue to honour purchase commitments made before the announcement – orders typically placed six to eight weeks in advance – but will not place new orders thereafter, they said. Hindustan Petroleum Corporation Ltd (HPCL), Mangalore Refinery and Petrochemicals Ltd (MRPL) and HPCL-Mittal Energy Ltd (HMEL) had stopped buying oil from Russia soon after the US last year slapped sanctions on Moscow’s key exporters, while others like Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Ltd (BPCL) will wind down their purchases, sources said. Reliance Industries Ltd, India’s biggest buyer, which late last year paused purchases after US sanctions on Rosneft and Lukoil, is also likely to cease purchases after its resumption cargo of 1,50,000 barrels is delivered in the next couple of weeks. The only exception to this rule is likely to be Nayara Energy. Nayara was first sanctioned by the European Union and then by the UK for its Russian links (Rosneft holds 49.13 per cent in Nayara). Because of these sanctions, no other major supplier is willing to do any commercial transaction with the company, resulting in it being forced to buy Russian oil from non-sanctioned entities. While the Oil Ministry has refused to comment on the issue, the Commerce Ministry and the Ministry of External Affairs have not directly commented on commitments made by India with regard to Russian oil purchases.
EU Escalates Oil Sanctions With Broad Ban on Shipping Services
The European Union is preparing to take a much bigger swing at Russia’s oil trade, and this time Brussels is aiming less at optics and more at the plumbing that actually keeps barrels moving. The European Commission has proposed what would be its broadest sanctions package yet against Russian crude exports, targeting not just ships or buyers but the services that make seaborne oil trade possible in the first place. The plan would ban European firms from providing shipping, insurance, financing, and other maritime services for Russian crude at any price, effectively sidelining the G7’s much-criticized oil price cap. If adopted, the move would cut directly into a system that still relies heavily on Western infrastructure. Russia exports more than a third of its crude using tankers and services linked to Greece, Cyprus, and Malta, supplying mainly India and China. The new proposal would shut that door, forcing Russian oil even deeper into the shadow fleet ecosystem. The package, the EU’s 20th since Russia’s invasion of Ukraine, would also expand sanctions on Moscow’s maritime workarounds. Brussels wants to add 43 more vessels to its shadow fleet blacklist, bringing the total to around 640, while also hitting regional Russian banks and crypto firms accused of helping evade sanctions. New import bans on Russian metals, chemicals, and critical minerals are also included. European Commission President Ursula von der Leyen framed the measures as necessary ones that will push Moscow toward serious peace talks. Pressure, she contends, is the only language the Kremlin understands. The intent is to make Russian oil harder, riskier, and more expensive to sell. It is part of a broader hardening by Western governments. Earlier in the day, the United States announced fresh sanctions targeting Iranian oil traders and shadow fleet vessels—a renewed focus on enforcement. The original price cap experiment was supposed to let oil flow while starving Russia of revenue. But as some predicted, the pressures proved easy to dodge and difficult to police. A services ban is blunter and harder to game. It is unilkely to stop Russian oil from flowing altogether, but it should push more barrels into discounted, high-friction channels where margins shrink as logistics get even more complicated. Unanimity among EU members is still required, and that is never guaranteed.
The U.S. LNG Boom Is Lowering Europe’s Energy Costs and Raising America’s
The United States has cemented its position as the world’s leading exporter of Liquefied Natural Gas (LNG) over the past couple of years, thanks to surging natural gas demand in Europe and Asia. U.S. LNG exports hit a record 111 million tons in 2025, surpassing 100 million metric tons for the first time, driven by high utilization and new capacity additions from projects like Plaquemines LNG. But this could be just the beginning of the U.S. LNG boom: the EIA has predicted that U.S. LNG export capacity will more than double by 2029, with an estimated 13.9 Bcf/d of new capacity added between 2025 and 2029 as projects like Plaquemines LNG Phase 1 and Corpus Christi Stage 3 reach full operations. Meanwhile, additional projects such as Delta LNG, CP2 LNG, and others are expected to further bolster capacity toward 2030. However, the energy experts are now warning that all this growth will come at cost, as does everything. According to Wood Mackenzie, European demand for industrial natural gas has declined by 21% since 2021 while industrial power demand has decreased by 4%, driven by soaring gas prices after Russia’s invasion of Ukraine. However, WoodMac has projected that the ongoing massive wave of new global LNG supply, primarily from the U.S. and Qatar, is expected to nearly halve European traded gas prices by 2030 compared to 2025 levels, saving European industry roughly $46 billion annually by 2032. Conversely, surging LNG exports and soaring demand from AI data centers are projected to push domestic U.S. gas prices to an average of $4.90/MMBtu between 2030 and 2035, a nearly 50% increase from 2025 levels. This constitutes a narrowing competitive gap, with the large cost advantage that U.S. manufacturers have enjoyed for over a decade poised to shrink despite U.S. energy remaining cheaper than European energy in absolute terms. That doesn’t mean that European manufacturers will be complaining, though. The EU has become heavily reliant on the U.S., which supplied more than 57% of EU LNG imports by early 2026, up from 45% in 2024. Consequently, falling energy prices will benefit energy-intensive industries sectors such as petrochemicals, metals, and chemicals, which have been under severe cost pressure since the global energy crisis hit four years ago, with WoodMac reporting they are going through a “price reversal window” that will allow them to stabilize or recover. Lower European energy costs are expected to open up growth opportunities, with WoodMac predicting that the continent’s pharmaceuticals, food processing, and data center sectors are likely to capture a larger share of the international market. This could, however, prove to be a double-edged sword for the U.S. economy. Indeed, the U.S. LNG boom is poised to create a complex, often contradictory impact on the U.S. economy, acting as a major driver for GDP growth, job creation, and infrastructure investments while simultaneously raising domestic energy costs and complicating the energy transition. The LNG boom is expected to contribute up to $1.3 trillion to the U.S. GDP by 2040 and generate $166 billion in federal and state tax revenues, according to an S&P Global study. The industry is expected to create nearly 500,000 jobs, encompassing direct, indirect, and induced employment. Over $50 billion is projected to flow into new, massive infrastructure projects (e.g., Plaquemines, Golden Pass, Port Arthur). In contrast, experts warn that even relatively modest increases in gas and energy prices can lead to large increases in operating costs, potentially taking a toll on margins. An analysis by the Industrial Energy Consumers of America (IECA) found that every $1 increase in the Henry Hub price costs U.S. consumers and manufacturers ~$54 billion annually in combined gas and electricity expenses, including $20 billion more in electricity expenses as well as $34 billion increase in direct natural gas costs for consumers and manufacturers. For manufacturers, who often cannot pass on energy costs as easily as regulated utilities, a $1 increase in the Henry Hub price poses a direct threat to competitive advantage. Industries that rely heavily on natural gas, such as manufacturing, chemicals, and fertilizers, face increased operational costs, with estimates of up to $125 billion in added costs by 2050. But it’s not just large industries that could suffer the negative consequences of the ongoing AI and LNG boom. Increased exports connect the U.S. domestic natural gas market to higher global prices, driving higher electricity and heating bills for U.S. households. Meanwhile, analysts have warned that the U.S. could face a domestic energy crunch that could trigger spikes in energy prices if natural gas production growth fails to meet export demand growth. This could negatively impact the clean energy transition, with higher natural gas prices making coal power more competitive in the domestic electricity market.
Oil prices fall as US, Iran agree to talks, easing conflict concerns
Oil prices fell on Thursday after the U.S. and Iran agreed to hold talks in Oman on Friday, easing concerns of a potential military conflict between them that could disrupt supply from the key Middle East-producing region. Brent crude futures fell $1, or 1.4%, to $68.47 per barrel at 0152 GMT. U.S. West Texas Intermediate crude prices fell 91 cents, or also 1.4%, to trade at $64.23. Oil prices surged about 3% on Wednesday after a media report suggested the planned talks between the United States and Iran on Friday could collapse. However, later in the day officials from both sides said talks would go ahead on Friday though the topics up for discussion have not been settled. Tony Sycamore, market analyst with IG, pointed to the uncertainty around the talks as the reason for the swings, noting the price surge on fears of their collapse but they were easing as “these fears have since moderated on reports that the nuclear talks are back on.” Iran is open to discussing its nuclear programme, including uranium enrichment, with Western countries, while the U.S. also wants to include Iran’s ballistic missiles, its support for armed proxy groups around the Middle East and its treatment of its own people. Despite the talks, there are concerns U.S. President Donald Trump will still carry out his threats to strike Iran, the fourth-largest producer among the Organization of the Petroleum Exporting Countries, potentially risking a wider confrontation in the oil-rich region. In addition to the possible disruption of Iranian production in the event of a conflict, there are concerns exports from other Gulf producers could be affected. About a fifth of the world’s total oil consumption passes through the Strait of Hormuz which lies between Oman and Iran. Other OPEC members, Saudi Arabia, the United Arab Emirates, Kuwait and Iraq, export most of their crude via the strait, as well as Iran itself. While the planned talks are reducing the recent risk premium in prices, the market was supported on Wednesday by data showing declines in oil inventories in the U.S., the world’s biggest crude producer and consumer. U.S. crude stocks and distillate inventories fell while gasoline inventories rose in the week ended January 30 as a winter storm gripped large swathes of the country, the Energy Information Administration said on Wednesday.
India open to Venezuela oil imports subject to commercial viability: MEA spokesperson Randhir Jaiswal
India remains open to exploring crude oil supplies from Venezuela and other sources, depending on commercial viability, the Ministry of External Affairs (MEA) said on Thursday, outlining New Delhi’s position on energy security amid global supply uncertainties. “There is a history of engagement with Venezuela. We have a long-standing energy partnership with them, and we remain open to exploring options of availability of crude oil from Venezuela and other places, depending on its commercial viability,” Randhir Jaiswal said at a press conference.Responding to a query on India’s oil imports from Venezuela, MEA spokesperson Randhir Jaiswal said Venezuela has been a long-standing energy partner for India, both in trade and investment. U.S. President Donald Trump last week agreed to reduce tariffs on Indian goods to 18% from 50% as part of a broader trade deal and claimed Prime Minister Narendra Modi has assured him that the South Asian nation will stop buying Russian oil. Trump also said India will buy more oil from the U.S. and ‘potentially Venezuela’. Modi, however, did not comment on India’s plan to halt Russian oil imports in his message welcoming the trade deal. Jaiswal said ensuring the energy security of 1.4 billion Indians is the “supreme priority” of the government. “As far as Venezuela is concerned, it has been a long-standing partner for us in the area of energy, both on the trade side and also on the investment side,” Jaiswal said during a media briefing. He noted that India had been importing crude oil from Venezuela until 2019–20, after which purchases were halted. “We were importing energy or crude oil from Venezuela till 2019–20 and thereafter, we had to stop,” he said. According to the MEA, India resumed buying oil from Venezuela in 2023–24, but those imports were again halted following the reimposition of sanctions. Jaiswal also highlighted the presence of Indian public sector undertakings (PSUs) in the South American nation. “Indian PSUs have established partnerships with the National Oil Company of Venezuela, PDVSA, and our PSUs have maintained a presence in the country since 2008,” he said. Emphasising India’s broader approach to securing energy supplies, the MEA spokesperson said the country remains pragmatic in its sourcing strategy. “Consistent with our approach to energy security, India remains open to exploring the commercial merits of any crude supply options,” Jaiswal said. India, the world’s third-biggest oil importer and consumer, had twice in the past halted imports from Venezuela under pressure from sanctions in 2019-20 and 2023-24.
Russia Signals It Will Keep Sending Oil to Cuba Despite U.S. Pressure
Russia has been supplying crude oil to Cuba repeatedly over the past few years and supplies will continue, the Russian ambassador to Havana, Viktor Koronelli, told state news agency RIA today. The statement comes following the latest U.S. squeeze on Cuba, with President Trump threatening tariffs on countries that continue sending crude to the island nation, warning it had about two weeks’ worth of oil earlier this month. Trump is aiming for regime change in Cuba. Despite the threats, Mexico’s state oil company said this week it intended to uphold its contract with the government in Havanna and continue shipping oil there. That statement follows reports about Pemex canceling a planned oil cargo for Cuba at the end of January in response to Trump’s pressure campaign, with Reuters noting that the Mexican leadership was worried about getting punished by Washington if it kept shipping oil to Cuba. President Claudia Scheinbaum, however, said that Pemex’s decision to suspend that shipment was made on the grounds of price considerations and not under U.S. pressure. Mexico has been exporting oil to Cuba at a rate of between 17,000 bpd and 20,000 bpd as of 2024 and early 2025. The island’s biggest oil supplier, however, was Venezuela, until the U.S. removed President Nicolas Maduro and took over the country’s oil industry. Between January and September last year, Mexico shipped roughly 17,200 barrels per day of crude oil and 2,000 bpd of refined products to Cuba, according to Pemex filings. This may be modest by global standards, but it is what keeps Cuba’s power plants and transportation running. Commenting on the events in Venezuela with regard to Cuba, Russia’s Koronelli said that it may be too premature to talk about Cuba losing an ally, although he acknowledged that “relations in certain spheres had changed format.”
GAIL contests latest Petroleum & Natural Gas regulator’s tariff order
GAIL, the country’s largest gas transporter, has challenged the Petroleum and Natural Gas Regulatory Board’s (PNGRB) latest tariff order, citing “apparent mistakes” by the regulator, its finance chief said. The PNGRB recently approved a tariff of ₹65.69 per mmBtu for GAIL’s integrated pipeline network, a 12% increase over last year’s ₹58.60 but well below the ₹78 per mmBtu sought by the company. GAIL has appealed the order, arguing that the regulator wrongly excluded future capital and operational expenditure while determining the tariff, Rakesh Jain, director (finance), told ET. While PNGRB accepted higher gas transmission volumes, it did not allow a proportionate increase in transmission losses, which weighed on the tariff, he said. Jain said the regulator erred in how it treated gains from pipeline capacity utilisation above 75%. Under the rules, such gains are to be shared equally between the operator and customers, but the PNGRB passed the entire benefit to customers, he said. “These, in our view, are apparent mistakes. So, we have filed an appeal with the PNGRB,” Jain said. A lower tariff approval could ultimately hurt consumers, he said. “It looks like a loss in the short term (for us), but we will get the money eventually. The customer will then have to pay much more.” GAIL is entitled to a 12% post-tax return on capital employed through tariffs, Jain said.
India Weighs Cheap Russian Oil Against Costly U.S. Trade Commitments
Russia’s flagship crude, Urals, is being offered in India at a widening discount to Brent, with the differential now at $11 per barrel and testing the appetite of Indian refiners amid the trade deal with the U.S. that calls for limited purchases of Russian oil. Sellers are offering Urals at an $11 per barrel discount this week, widened from about $9 a barrel ten days ago, anonymous traders involved in the offerings told Bloomberg on Wednesday. Typically, such steep discounts would have Indian refiners rushing to lock in purchases. However, the U.S.-India trade deal and lower tariffs for Indian products in the United States depend on India slashing imports of Russian crude oil. Refiners in India are reportedly waiting for government guidance on how to proceed, if at all, with Russian oil purchases. Following the trade deal announced by U.S. President Donald Trump, Indian refiners seek clarification about Russian oil imports from their government, with some pre-emptively halting purchases, sources with knowledge of the matter told Bloomberg earlier this week. President Trump broke the news of a deal with India on Monday, saying the U.S. would reduce tariffs on Indian imports in exchange for a commitment on the part of New Delhi to stop buying crude oil from Russia and boost purchases of American oil instead, along with other goods and commodities. The deal would also grant Indian energy buyers access to Venezuelan crude and maybe even Iranian crude, as suggested by the U.S. President, providing alternatives to Russian crude. India, the world’s third-largest crude oil importer, dramatically raised its imports of cheap Russian crude following Moscow’s invasion of Ukraine in early 2022. For nearly four years, India imported so much Russian crude that Russia became its single biggest oil supplier, accounting for about a third of all imported crude. But now refiners are temporarily halting Russian oil purchases and seeking clarification. Regardless of the cheap Russian crude currently on offer, India will have to take into account the U.S. deal and its implications.