Indian Prime Minister Narendra Modi has hailed his country’s growing energy ties with Russia at a meeting with President Vladimir Putin, defying punitive tariffs levied on New Delhi by the US over its purchases of discounted Russian oil.

At a meeting on the sidelines of a regional summit in China on Monday, Modi told Putin that “even in the most difficult circumstances India and Russia have walked together, shoulder to shoulder. Our close co-operation is important not just to our two countries but for global peace, stability and prosperity.”

India’s foreign ministry said the two leaders had “discussed bilateral co-operation, including in the economic, financial and energy sectors and expressed satisfaction with the sustained growth in bilateral ties in these areas”.