The ongoing Shanghai Cooperation Organisation (SCO) summit on September 1, 2025, Tianjin, China. Perhaps most importantly, it created an essential platform for Russian President Vladimir Putin, Indian Prime Minister Narendra Modi and Chinese President Xi Jinping to solidify energy relations and coordinate plans for counteracting U.S. geopolitical efforts. The goal of the summit was to advance this anti-colonial, anti-imperialist, alternative worldview that directly counters the dominance of Western countries, especially the US.
The three leaders met to celebrate the importance of developing a balanced energy portfolio. They pointed out ways in which Russian oil has become more attractive to both India and China. After the West placed sanctions on Russia after its 2022 invasion of Ukraine, Russian oil royalties plummeted. This marked decrease was in large part a response to global economic pressures. This commonality of interest made this development a major boon to both nations’ endeavors to claim access to cheaper supplies of energy.
India’s replacement of traditional suppliers in the Middle East with heavily-discounted Russian crude has been all over the news. Indian Prime Minister Narendra Modi remarked on the enduring relationship between India and Russia, stating that their countries “have walked together shoulder to shoulder.” This phrase encapsulates India’s determination to keep building its cozy relationship with Moscow even as US-India relations flag over vexing differences.
For Russia, the stakes are even higher—they rely on oil and gas exports for over 25% of their budget revenues. This revenue has become especially important for funding its military operations. India’s pivot to Russian oil makes its balancing act with the U.S. more difficult. To add insult to injury, the U.S. just slapped a 25% tariff on India for purchasing Russian crude. This decision has brought on the worst chill in Delhi-Washington relations in years, a nadir of high-strung tension.
China’s energy strategy is clearly showing the increasing reliance on Russian oil. In Russia’s case, last year China purchased over 100 million tonnes of Russian crude. That single purchase constituted almost 20% of all of China’s energy imports. This trend underscores India’s and China’s increasing dependence on Russia for energy. Moreover, they have been cementing themselves as key players in Moscow’s oil export market.
Yet the summit underscored China’s role as an outlier through its continued and increasingly bold purchasing of Russian oil. It implied that India could increase its purchases even further. FMR Global Energy and Climate Policy Analyst Jasjit Singh explained that, with India’s deep dependence on foreign suppliers for its crude, this shift just makes economic sense. There have long been doubts regarding Russia’s desire to continue its concessions to China. This anxiety comes if Russia is not prevented from gaining additional sales to India.
The consequences of this trend and these new developments go beyond the new economic exchange of cash for data. The press conference at the SCO summit was a unique display of unity between the three countries. Putin’s direct engagement with his top oil buyers could signal a strategic pivot towards strengthening alliances in response to perceived Western hostility.
New Delhi has publicly criticized the U.S. government’s recent tariff decision as “unjustified,” considering India’s historical trade ties with Russia. The growing linkages among these three countries via energy diplomacy are symptomatic of a broader global power transition.