Can Russia be India's oil backstop amid US's Hormuz blockade? What Moscow said

With a US blockade of the Strait of Hormuz impacting global oil flows, Russia on Wednesday positioned itself as a key energy backstop for India, even as it warned of prolonged economic disruption and geopolitical instability.

In an exclusive interview with India Today TV, Kremlin spokesperson Dmitry Peskov sought to reassure New Delhi, projecting Russia as a dependable energy partner. “In these very challenging circumstances, Russia remains a reliable supplier of energy to all countries, including India, with which we maintain cooperation,” he said.

He underlined the gravity of the situation, saying Moscow and Beijing had long warned against a US-Israeli military escalation on Iran, now in its seventh week.

“From the very beginning, we’ve been warning that war would lead to very negative and severe consequences – not only for regional security and predictability, but for the global one and, of course, for the global economy,” Peskov said. “And actually, this is what we’re seeing... the situation is really very grave.”

While hostilities between Iran and the US have paused owing to a fragile two-week ceasefire which came into effect on April 8, Peskov cautioned that the economic fallout is already underway. “We thank God there is no battle any more. We hope that this ceasefire will last (longer). But meanwhile, the negative consequences for the global economy are going on,” he said.

Oil prices surged above USD 103 per barrel after the collapse of US-Iran ceasefire talks in Islamabad on Sunday, before easing on hopes of a second round of negotiations. As of now, crude is hovering around the USD 96 per barrel mark, with traders reacting to mixed signals – supply disruptions through Hormuz pushing prices up, while optimism over talks pulls them down.

RUSSIA SIGNALS ENERGY SUPPORT FOR INDIA

For India, heavily dependent on imported crude, disruptions in the Gulf – particularly around Hormuz, through which a fifth of global oil trade passes – pose a direct economic risk.

Peskov emphasised India’s importance in Moscow’s energy calculus. “India is a very important partner for us. We have very sophisticated cooperation. It’s not only shipments of oil. We do hope that we’ll only enlarge the scale of this cooperation in future,” he said.

India has already emerged as one of the largest buyers of discounted Russian crude since Western sanctions reshaped global energy flows following the Ukraine war. In recent weeks, Washington has signalled limited flexibility by granting temporary waivers to several countries, including India, allowing continued purchases of Russian oil to prevent supply shocks amid the Hormuz crisis that emanated from the US-Iran war.

At the same time, Peskov acknowledged that replacing disrupted Gulf supplies would not be immediate. “One third of the Gulf production of oil is out of the market. It cannot be compensated overnight. It will take time to rebalance the oil market,” he said, warning of “very negative” consequences for global markets.

NAVAL BLOCKADE AND GLOBAL SHIPPING CONCERNS

Addressing speculation over a prolonged Hormuz blockade scenario by the US military, Peskov stressed the need to keep maritime routes open, a critical concern for India’s trade and energy security.

“We are calling on all sides to take a balanced approach and to ensure commercial maritime freedom in the Gulf that is vitally important – not only for the Gulf countries, but also for the rest of the world, and for countries like India, Russia and China,” he said.

While he did not confirm any military deployment, he indicated close coordination with Tehran. “We stay in contact with Iran. We are determined to continue those relationships,” he said, reiterating Moscow’s position that it is “not a participant of this war.”

NUCLEAR FLASHPOINT AND STALLED DIPLOMACY

On the issue of Iran's nuclear programme, Peskov revealed that Russian President Vladimir Putin had earlier proposed a diplomatic solution involving the transfer of Iran’s enriched uranium to Russian territory — an idea rejected by the US.

“This is not a new initiative. President Putin said that Russia was ready to take enriched uranium on its soil. This actually could have been a very good solution. But unfortunately, the American side rejected this proposal,” he said.

He added that Moscow remains open to reviving the idea and that “Putin is ready to return to this initiative should it be needed.”

FRAGILE CEASEFIRE, LONG-TERM RISKS

Despite the pause in fighting, Peskov warned that uncertainty remains high, with conflicting reports on the extent of maritime restrictions.

“We don’t know exactly who is blockading what. We don’t know yet what the consequences are going to be,” he said, adding that oil supply disruptions and shipping delays would have lasting effects.

“The consequences will be felt for quite a long time. It will not disappear immediately,” he said.

On Iran’s resilience under pressure, he struck a cautious note, saying, “Iran is a big country. But of course, now they are having lots of hardship, so let’s wait and see.”

INDIA AT CENTRE OF SHIFTING ENERGY GEOPOLITICS

As tensions in the Gulf reshape global supply chains, India finds itself navigating a delicate balance – maintaining ties with traditional suppliers, while deepening energy cooperation with Russia.

Peskov made it clear that Moscow sees New Delhi as central to its long-term strategy. “We are ready to increase supplies should it be needed and we do hope that we will only enlarge the scale of this cooperation,” he said.

With the Hormuz flashpoint threatening to redraw energy routes and alliances, Russia’s outreach underscores a broader realignment – one where India’s energy security is increasingly tied to shifting geopolitical fault lines.

As hopes of an extension of the US-Iran ceasefire brighten and oil markets are on edge, India’s energy security now hinges not just on supply – but on how long the fragile peace holds in one of the world’s most critical chokepoints.

- Ends

Tune In