New Delhi, 19 March 2022 (TDI): The state-run Indian Oil Corp. purchased 3 million barrels of crude oil from Russia earlier this week to meet its energy needs, as reported by the Associated Press on Friday. The decision was made despite the pressure from the West to avoid such purchases in the wake of the ongoing Russia-Ukraine crisis and the consequent sanctions imposed on Russia.
The official spokesperson for the Indian Ministry of Foreign Affairs of India, Arindam Bagchi, stated, “India imports most of its oil requirements. We are exploring all possibilities in the global energy market. I don’t think Russia has been a major oil supplier to India.”
The Indian government previously came to an agreement with the USA to release 3.5 million barrels from its reserves as part of a coordinated release in response to international gas price hikes. India presently has approximately 31 million barrels of oil in its emergency reserves.
India has been getting pressure from the USA, UK, and other Western countries to refrain from purchasing Russian oil and gas. According to Indian media sources, Russia is offering a 20% discount on oil purchases compared to global benchmark pricing.
Prices have risen sharply in recent weeks, putting a strain on countries like India, which imports 85 percent of its oil. As the country’s economy rebounds from the pandemic’s damage, demand is expected to rise 8.2 percent to 5.15 million barrels per day this year.
USA’s response
Commenting on the news, the American White House press secretary Jen Psaki said that Indian purchases of Russian oil would not collide with the US sanctions, but Indian officials should consider where they want to stand when history books are written.
India imports nearly 85% of the oil it consumes. Iraq supplies the most oil to India, accounting for 27%, followed by Saudi Arabia (17%), the United Arab Emirates (13%), and the United States (9%). In 2020, India purchased the third-largest amount of crude oil of any country, totaling $64.6 billion. Only China ($176.3 billion) and the United States ($81.8 billion) import more than it.
