India’s decision to continue importing oil from Russia has sparked international debate, as global markets face persistent volatility due to geopolitical events and energy supply concerns. At a recent energy summit, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri highlighted India’s pragmatic stance, defending its choice to buy Russian oil despite Western sanctions on Moscow following the Ukraine crisis.
Puri stated that India has prioritized its energy security by choosing economically viable options rather than succumbing to political pressures. He argued that switching to more expensive oil sources, such as the Middle East, would likely drive global oil prices up to $150 per barrel, a significant hike from the current levels, which hover around $75-76 per barrel. This, he believes, would destabilize an already vulnerable market impacted by supply cuts from the OPEC+ coalition and recent Middle Eastern tensions.
India did the entire world a favour by buying Russian oil because if we had not done so, the global oil prices would have skyrocketed to $200/barrel. Russian oil was never under any sanctions and there was only a price cap, which Indian entities also followed.
Let us not forget… pic.twitter.com/JZsvoFX74T
— Hardeep Singh Puri (@HardeepSPuri) November 7, 2024
Hardeep Singh also took to his X account to share Details.
India’s Oil Import Policy and Global Impacts
In 2023, Russia became India’s leading oil supplier, accounting for over 40% of its imports. The country’s increased reliance on discounted Russian crude has helped curb inflationary pressures at home while keeping global prices from spiking. Puri pointed out that India’s purchasing strategy, which seeks the most affordable sources, offers indirect benefits to global economies. He further clarified that Indian refiners continuously monitor prices across various sources, shifting as needed, which has included recent moves to increase purchases from the UAE and Saudi Arabia when Russian oil prices exceeded the G7’s $60 price cap.
Critics and the Global Response
Despite the West’s sanctions on Russian energy, many Western nations have maintained indirect links to Russian oil through third-party markets. Puri contends that India’s purchases play a stabilizing role, particularly amid escalating geopolitical tensions, such as the ongoing Israel-Hamas conflict. Such tensions have sparked fears of oil supply disruptions, intensifying the need for stable pricing in international markets.
Input from agencies.
Web Team, C6N
