Tag: Russia Sanctions

  • Legitimate energy transactions can’t be politicised: India on oil import from Russia

    By PTI

    NEW DELHI: India on Wednesday asserted that its energy purchases from Russia remain ‘minuscule’ in comparison to its total consumption and that legitimate energy transactions cannot be politicised as energy export from Russia are yet to be sanctioned.

    The world’s third-biggest oil-consuming and importing nation has in recent weeks snapped few cargoes available from Russia at deep discounts as part of its plans to diversify its import basket.

    These purchases have been commented upon.

    “India’s legitimate energy transactions cannot be politicized,” the oil ministry said in a statement reacting to such reports.

    “Energy flows are yet to be sanctioned.”

    It went on to state that the reports “make conjectures and try to sensationalize routine purchase of crude oil by Indian oil companies from Russia based” and this is a part of “a pre-meditated attempt to further destabilize an already fragile global oil market.”

    “India’s energy needs are enormous with daily consumption of around 5 million barrels and a refining capacity of 250 million tonnes per annum,” it said.

    “For energy security and to fulfil its objective of providing energy justice to each of its citizens, Indian energy companies buy from all major oil producers in the world.”

    It, however, did not quantify the purchases made from Russia.

    “Our top 10 import destinations are mostly from West Asia. In the recent past, USA has become a major crude oil source for India, supplying almost USD 13 billion worth of energy imports, with almost 7.3 per cent of market share of crude oil imports,” the statement said.

    India, it said, has been constrained to pay ever-increasing prices charged by certain oil suppliers, which is leading India to diversify its sources of procurement.

    “Meanwhile, energy demand in India remains inelastic. At the current price levels, many countries in the immediate neighbourhood are facing severe fuel shortages and chaos due to high fuel inflation,” it said adding the Government has ensured access to affordable energy to Indian citizens despite challenging times.

    The ministry said Indian energy companies have been sourcing energy supplies from Russia, on a sustained basis, over the past several years.

    “Yearly figures may have varied due to a variety of reasons, including operational necessities.”

    “If suddenly, now, as a huge importer of crude oil, India pulls back on its diversified sources, concentrating on the remaining, in an already constrained market, it will lead to further volatility and instability, jacking up international prices,” the statement said justifying purchases from Russia.

    “Despite attempts to portray it otherwise, energy purchases from Russia remain minuscule in comparison to India’s total consumption,” it said calling for attention to be on other countries that are major consumers of energy supplied from Russia.

    Speculation on Indian purchases from Russia will “end up serving vested interests including speculators, leading to a negative impact on the global economic recovery,” it added.

  • Russian foreign minister may visit India, to discuss payment system for New Delhi’s procurement of oil and military hardware

    By PTI

    NEW DELHI: Russian Foreign Minister Sergey Lavrov is likely to visit India in the next one week and the key focus is expected to be discussions on a payment system for New Delhi’s procurement of oil and military hardware from Moscow, people familiar with the developments said on Monday.

    It would be the highest-level visit from Russia to India after Moscow launched its military offensive against Ukraine on February 24.

    There has been no official word on the proposed visit either by the Ministry of External Affairs or by the Russian Foreign Ministry.

    There has been a flurry of high-level visits to India in the last few weeks including by Chinese Foreign Minister Wang Yi, US Under Secretary of State for Political Affairs Victoria Nuland and foreign ministers of Austria and Greece.

    British Foreign Secretary Liz Truss is scheduled to visit India on Thursday.

    On Lavrov’s proposed visit, the people cited above said the main focus is likely to be a payment system for India’s procurement of Russian crude oil and military hardware.

    The western sanctions on Russia have created difficulties in making payments to that country.

    It is learnt that both sides have been looking at activating a rupee-ruble payment system.

    Unlike many other leading powers, India has not yet criticised Russia for its invasion of Ukraine and it abstained from the votes at the UN platforms in condemning the Russian aggression.

    However, last Thursday, India abstained on a resolution pushed by Russia on the humanitarian crisis in Ukraine, which was seen as reflective of its neutral position on the conflict.

    India has been pressing for the resolution of the crisis through diplomacy and dialogue.

    Prime Minister Narendra Modi has held phone conversations with Russian President Vladimir Putin on February 24, March 2 and March 7.

    Modi had spoken to Ukrainian President Volodymyr Zelenskyy twice.

    Last week, External Affairs Minister S Jaishankar said in Parliament that India’s position on the Ukraine conflict has been “steadfast and consistent” and that it has been seeking immediate cessation of violence.

    His comments came in the backdrop of increasing disquiet in the West over India not criticising Russia for its invasion of Ukraine and abstaining from the votes at the UN Security Council.

    Russia has been India’s major supplier of military hardware and New Delhi has been worried about possible delays in the supply of some key platforms and equipment because of the Ukraine conflict.

    India has also decided to purchase discounted crude oil from Russia, triggering concern among a number of Western powers.

    White House Press Secretary Jen Psaki said around two weeks back that India taking the Russian offer of discounted crude oil would not be a violation of the US sanctions on Moscow but underlined that countries should also think about “where you want to stand” on the Russian action.