The ongoing standoff between Iran and the United States has brought shipping through the Strait of Hormuz to a halt, creating major disruptions for India’s oil supply from Russia. Amid this crisis, Russia has put forward an alternative: President Vladimir Putin has proposed opening up the Northern Sea Route, a new Arctic shipping corridor, to the world. If this route becomes viable, it could reshape global trade patterns altogether. The Indian government has responded positively to the proposal.
India’s External Affairs Ministry has confirmed that discussions are underway with Russia regarding this new route, stating that trade corridors between the two countries are of significant importance. Speaking at a recent meeting, President Putin said that both India and China have shown strong interest in collaborating on this route, and that the benefits arising from it would be shared with all parties in accordance with international regulations. Responding to this, India said it is in continuous talks with Russia on the matter.
The Northern Sea Route runs along Russia’s northern coast through the Arctic and connects the Atlantic and Pacific Oceans. Currently, India and China rely on the Red Sea and Suez Canal route for trade with Europe — a corridor that carries heightened risk due to regional conflicts and tensions. The route Putin is proposing would shorten the distance and significantly cut travel time.
This new route could save ships 10 to 15 days of travel time. The shorter distance would reduce fuel costs and bring down freight rates considerably. More importantly, it would eliminate the risk of attacks and shipping congestion seen along the traditional route. However, the Arctic region experiences extreme cold with waters that freeze over, meaning ordinary vessels cannot navigate it — specialised nuclear-powered icebreaker ships are required. Russia already possesses a fleet of such vessels.
This project holds significant importance for India. It would allow the country to import crude oil and gas from Russia more cheaply and quickly, while also providing a third, secure trade route that reduces India’s dependence on a single corridor. Plans are also reportedly underway to train Indian sailors specifically for navigating Arctic waters.
The route is equally important for Russia. The Arctic region holds substantial reserves of oil, gas, and valuable minerals. With sanctions imposed by other countries limiting its options, Russia is now pinning its hopes on India and China. China is already utilising this route, and if India joins as well, it could fulfil Russia’s ambition of turning the Northern Sea Route into the world’s largest trade corridor.