Russia holds enough to overflow India

(MENAFN) Once seen as a remote and inaccessible region, the Arctic is now emerging as a major geopolitical and economic hotspot. As climate change melts polar ice, vast reserves of critical minerals, hydrocarbons, and new shipping lanes are becoming accessible. While NATO expands its presence in the region, a heavily sanctioned Russia is seeking reliable partners to help develop its Arctic assets.

For India, this changing landscape presents a unique strategic opening. With growing energy demands, ambitions for critical mineral security, and a push for a multipolar world order, India can approach the Arctic not as a rival, but as a partner to Russia—custodian of over half the Arctic coastline and its untapped resource wealth.

India’s energy needs and focus on cleaner fuels align well with Russia’s Arctic LNG (liquefied natural gas) goals. While Russia’s Yamal LNG project has exceeded expectations, the Arctic LNG-2 project has faced delays due to Western sanctions. However, a shift in U.S.-Russia relations under Donald Trump’s second presidential term, as noted by Oxford Energy, may ease sanctions and unlock new opportunities.

This evolving situation creates a timely window for India to boost its presence in the Arctic by investing in LNG infrastructure, securing long-term gas contracts, and playing a vital role in shaping the Arctic’s future order. Russia’s Yamal LNG facility has already produced over 100 million tonnes of LNG since 2017, operating above capacity since 2023. India benefits from this output through GAIL’s long-term contracts with Gazprom Marketing & Trading Singapore, ensuring steady supply despite EU restrictions on transshipment.

However, the real challenge lies with Arctic LNG-2. Once nearing completion in 2021, the project stalled due to intense sanctions. Limited operations resumed in 2025, and while India has officially kept its distance, behind-the-scenes talks continue. Russia is offering attractive terms, including steep discounts and Delivered Ex-Ship (DES) arrangements, similar to its oil deals with India. With the recent thaw in U.S.-Russia relations, a breakthrough may be on the horizon if secondary sanctions are relaxed.

India’s involvement in the Arctic also aligns with its “Act Far East” initiative and its 2022 Arctic policy. Past experience through ONGC Videsh’s $8.4 billion investments in Sakhalin and Vankorneft gives India operational know-how and diplomatic leverage. Although Arctic conditions are harsher and more politically sensitive, India’s growing energy and strategic needs may soon draw it deeper into the polar frontier.

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