India largely increases import of Russian fuel

New Delhi – Before the Ukraine conflict, India used to buy about 1% of its energy demand from Russia, which has now significantly increased. In March, India purchased 1.64 million barrels of oil per day from Russia, which is twice what India used to buy from Iraq, its traditional source. Despite the US and Europe imposing sanctions on Russian oil, the quantum of oil imports by India from Russia is getting global attention. Recently, it was seen that Japan, an ally of the US and a member of G7, has purchased oil from Russia despite the sanction and price cap imposed by the US and European countries.

Moreover, China, India, and the United States are amongst the highest fuel importers. India used to buy oil from Iraq, Saudi Arabia, and middle eastern countries. Sometimes there were purchases from African countries as well. India’s oil imports from Russia were less than 1%. After the Ukraine conflict, since the US and Europe imposed sanctions on Russian oil, India was offered a discounted price for oil by Russia.

India significantly increased its imports from Russia, resulting in warnings from the US and European countries. However, India continued to buy Russian oil. In March, India imported 1.6 million barrels of oil per day, 34% of its energy demand from Russia, followed by Saudi Arabia and Iraq. The US, the third largest oil exporter to India, has slipped and now UAE stands in third position. The oil purchase priority given to countries indicates a shift in India’s new energy policy.

Furthermore, India has procured the oil at the lowest available price to ensure energy security and for its citizens. Petroleum Minister Hardeep Singh Puri said that the Indian oil companies have independent policies and are free to choose the import source country. The government has no interference in directing the mix of oil imports specific to countries. India did not succumb to external pressure. Hence, beyond the initial resistance, the US and European countries have come to terms with India’s oil purchase from Russia and there is not much response to the surge of oil imports from Russia.

Meanwhile, India’s independent oil policy has encouraged the middle eastern countries to cooperate with Russia openly. Japan, which strongly opposed Russia, is now buying Russian oil despite the sanctions and price cap of $60 per barrel imposed by the US and European countries. Japan’s decision is largely seen to be influenced by India’s strong independent position.

Although the US and European countries have demanded that India stop importing Russian oil, the Western media has claimed that these countries are indirectly buying Russian oil, which is processed refined fuel from India. Petroleum Minister Hardeep Singh Puri has said that the government is not concerned about the decisions taken by the private oil companies.

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