Amid threats of sanction on Russian oil supplies, India guided by ‘best offer’: MEA
Amid the US threat to impose secondary sanctions on Russian crude oil, India responded on Thursday by stating that securing its energy needs is a top priority, guided by what is the ‘best offer’. New Delhi also cautioned against having double standards in the enforcement of sanctions.
The ‘double standards’ remark was aimed at NATO as several European countries are planning to be dependent on Russian gas till 2027.
Answering questions about the impending sanctions, Ministry of External Affairs spokesperson Randhir Jaiswal said, “Securing energy needs of our people is understandably an overriding priority for us. In this endeavour, we are guided by what is on offer in markets, and by the prevailing global circumstances."
We are closely following developments, Jaiswal added.
The proposed ‘secondary sanctions’ will impact New Delhi’s exports of refined petroleum products derived from Russian crude oil that will face additional tariffs.
US President Donald Trump on Tuesday mentioned potential new sanctions on Russian oil that would kick in 50 days if Russian President Vladimir Putin does not agree to a peace deal to end the conflict with Ukraine. NATO Secretary General Mark Rutte echoed Trump, and warned Brazil, China and India saying these countries could be hit ‘very hard’ by secondary sanctions if they continued to do business with Russia.
India is a major importer of Russian crude oil which is capped at $60 to a barrel — much lower than the prevailing international rates. Indian crude imports from Russia are presently at 2.08 million barrels per day and meet some 42 per cent of Indian imports.
More than half of these imports from Russia are done by three refineries in India, which further export refined products to G7 countries.
When additional tariffs kick in, exports of refined products from India would be outpriced in the market — Trump has warned of almost 100 per cent additional tariffs on Russian-origin produce, including oil.
Sources in India were surprised at the NATO Secretary General’s statement since European Union — that includes NATO allies — has plans to continue importing Russian gas till 2027. “It’s double speak…so will Europe face these additional tariffs too," said an official.
Rutte had made the comment while meeting with senators in the US Congress a day after Trump announced new weapons for Ukraine and threatened “biting" secondary tariffs of 100 per cent on the buyers of Russian exports unless there is a peace deal in 50 days.
Since the Russia-Ukraine conflict, India has become a major buyer of Russian crude oil and has consistently maintained a stance of strategic autonomy, asserting its right to buy oil from wherever it gets the best deal, as long as it’s not under sanctions.
Europe and the US accuse India and China of buying Russian crude and financing Russia’s war machine. For India, halting imports of Russian crude oil would mean searching for alternate supplies globally — which are generally more expensive than the discounted Russian oil it currently purchases.
Given India’s heavy reliance on oil imports — almost over 85 per cent of its requirements — it would significantly increase the import bill, an outflow of more dollars. Resultantly, it could translate into higher domestic fuel prices for consumers in India.
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