 "Indian Prime Minister Narendra Modi and Russian President Vladimir Putin. File image/ Reuters")
Indian refiners have not stopped buying crude oil from Russia, news agency ANI has reported, citing sources in the government.
“Their supply decisions are guided by price, grade of crude, inventories, logistics and other economic factors,” the agency quoted the source as saying.
The sources also highlighted Russia’s crucial place in the global oil market, being the world’s second-largest exporter of crude.
Fears of Russian oil being pushed out of the market and the consequent dislocation of traditional trade flows drove dated Brent crude prices to soar to US$137 per barrel in March 2022.
“In this challenging environment, India, as the world’s third-largest energy consumer with 85 per cent crude oil import dependence, strategically adapted its sourcing to secure affordable energy while fully adhering to international norms,” said the sources.
Earlier, US President Donald Trump on Friday (August 1) said he heard that India is no longer purchasing oil from Russia. While speaking to the reporters, Trump went on to describe the alleged halting of oil purchases as a “good step”.
“I understand India no longer is going to be buying oil from Russia,” Trump told reporters as he departed the White House for his weekend trip to his Bedminster Golf Club in New Jersey. “That’s what I heard. I don’t know if that’s right or not, but that’s a good step. We’ll see what happens,” he said.
Trump’s statement came after news agency Reuters reported, citing sources, that Indian state-owned refineries suspended Russian oil purchases last week amid threats of tariffs from US and narrowing price discounts.
Impact Shorts
More ShortsMeanwhile, the Ministry of External Affairs Spokesperson Randhir Jaiswal on Friday responded to the criticisms hurled by the Trump administration and defended India’s longstanding partnership with Russia.
“India and Russia share a steady and time-tested partnership,” he said. Jaiswal also reaffirmed the strength of the India-US relationship, noting it is based on “shared interests, democratic values, and robust people-to-people ties,” and expressed confidence that bilateral relations would continue to move forward despite current tensions.