Bilateral efforts to expand cooperation in the oil and gas sector between Russia and India hold "great promise," the Kremlin said Thursday.

"We are paving the way for long-term, true and mutually beneficial cooperation," Russian President Vladimir Putin said during a state visit to New Delhi.

Russia is examining its energy options as Western sanctions take their toll on its economy. In July, Russian Ambassador to India Alexander Kadakin told Indian business newspaper The Hindu the Kremlin was interested in spending as much as $40 billion to build a natural gas pipeline for India.

The pipeline would run along the southern border of Russian to India through the Himalayan region or mirror the route of the planned pipeline from Turkmenistan.

India's economy is expected to expand by 5.8 percent next year, compared to a growth rate of 3.6 percent annually for the global economy. Russia's economy, meanwhile, is contracting under pressure from low oil prices and sanctions targeting its energy sector.

A Kremlin statement said both sides envision broad-based cooperation in the exploration and production sectors, as well as potential projects for liquefied natural gas and supplies.

"The bilateral program on enhanced cooperation in oil and gas sphere underlines the serious commitments of the two sides to develop cooperation in this area of great promise," the statement read.

The Kremlin added Indian companies are expected to take part in oil and gas operations in Russian territory.

New Delhi said the agreements may contribute to India's quest for energy security.