India’s efforts to source oil from Russia are legitimate and should not be politicized, say government sources

Amid Western sanctions against Russia for invading Ukraine, government sources told CNBC-TV18 on Friday that India’s efforts to source oil from Russia are deals legitimate and should not be politicized as the country relies heavily on imports to meet energy needs. .

The sources, speaking on condition of anonymity, said soaring oil prices after the Ukraine conflict added to his challenges. India imports almost 85% of its crude oil needs and ongoing geopolitical developments have posed significant challenges to its energy security, with pressure for competitive supply having understandably increased, they said.

“India must continue to focus on competitive energy sources. We welcome such offers from all producers. Indian traders are also operating in global energy markets to explore the best options. Oil self-sufficient countries or those importing from Russia cannot credibly advocate restrictive trade. India’s legitimate energy deals should not be politicized.”

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“For obvious reasons, we had to stop sourcing from Iran and Venezuela. Most of India’s crude oil imports come from West Asia (Iraq 23%, Saudi Arabia 18%, UAE 11% The United States has also become a major source of crude oil for India, 7.3% of imports come from the United States,” they added.

Imports from the United States are expected to increase significantly in the current year, probably by almost 11%, bringing the market share to 8%.

Alternative energy sources often have a higher cost, they said. “Russia has been a marginal supplier of crude oil to India (less than 1% of requirement, not among top 10 sources). There is also no government-to-government agreement for import oil.”

Russian oil/gas is bought by various countries around the world, especially Europe. Almost 75% of Russia’s total natural gas exports go to European OECD countries (such as Germany, Italy, France). European countries such as the Netherlands, Italy, Poland, Finland, Lithuania and Romania are also major importers of Russian crude oil.

Notably, recent Western sanctions against Russia have exceptions to avoid an impact on energy imports from Russia. However, Russian banks which are the European Union’s main payment channels for Russian energy imports have not been excluded from SWIFT.

(Edited by : Bivekananda Biswas)

First post: STI


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