New Delhi. After the Russia-Ukraine war, India has significantly increased its purchase of crude oil from Russia. Earlier, Russia’s share in India’s total crude oil imports was less than 1%, but by 2023, it will become the largest share, surpassing traditional suppliers like Iraq and Saudi Arabia, which account for 30% of India’s crude oil imports. Included. In July last year, India imported 40% of its total crude oil imports from Russia alone. However, in February this year, crude oil imports from Russia decreased, accounting for about 25% of total imports. There was speculation that India had reduced its purchases of crude oil from Russia under pressure from the United States. Nevertheless, the Indian government, while asserting its right to buy oil from any country based on its energy security needs, has clarified that it will continue to buy crude oil from Russia as before.
The Red Sea crisis became a cause for American concern. India recently clarified that there is no pressure to reduce imports from Russia; Rather, purchasing patterns have diversified. India is no longer dependent on some countries for the purchase of crude oil. In recent years, India has made deals with many new countries for the purchase of crude oil, making a total of 39 countries from which India now buys crude oil.
The result was that no single country now dominates India’s total crude oil imports. Meanwhile, America has also changed its stance in view of the current situation in the Gulf region and the Red Sea. While earlier there were discussions that America was pressurizing India to refrain from buying oil from Russia, now America says that it has not discouraged India from buying oil from Russia.
The United States has said that if India domestically refines oil purchased from Russia, it cannot be considered Russian crude. Basically, the products obtained from Russian crude oil refined in India are bought by European countries. However, the US believes that India should not rely excessively on purchases of Russian crude and this should be in accordance with international rules governing crude oil prices. G7 countries have set a price band for oil purchases from Russia.
Its purpose is to ensure that Russia gets a fair price for its oil and to prevent price fluctuations that may cause global inflation. US Deputy Finance Minister Eric Van Nastrand, during his visit to India, clarified that the purpose of the sanctions imposed on Russia is to limit the profits made by selling crude oil. Additionally, there are no restrictions on purchasing crude oil from Russia as there is a need to maintain global supply.
Following Russia’s attack on Ukraine in February 2022, Western countries imposed various sanctions, including limiting crude oil purchases and price caps. However, since then India has remained at the top among the countries purchasing crude oil from Russia.