India, Russia explore ways to tide over oil price volatility

India, the world’s third largest oil importer, is leaning on its old energy partner Russia to buffer its consumers from a sharp spike in crude oil prices. As part of a new playbook, the two countries are exploring ways to protect both the buyer and the seller from sharp swings in prices, according to a top Indian government official.

India is also eyeing more long-term crude oil contracts from Russia, with the two countries working on a multi-pronged approach that involves energy sourcing and supplies, upstream investments in Russia and India, and joint collaboration in petrochemicals.

With India recalibrating its crude sourcing strategy, the playbook may have a major bearing on the global energy architecture and help the country land better terms while negotiating crude oil purchases.