new Delhi: Amid ongoing criticism by the West, including the United States, over India’s decision to continue importing energy from Russia, the Center on Friday clarified that nations self-sufficient in oil or those importing from Russia itself are not credibly advocating restrictive trade. Can, news agency PTI quoted government sources as saying.
According to reports, the rise in oil prices as a result of the Ukraine crisis has contributed to India’s challenges, and the pressure for competitive sourcing has inevitably intensified.
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Sources also said that Russia has been a minor supplier of crude oil to India, which is less than 1 per cent of the country’s requirements and there is no government-to-government agreement for imports.
PTI quoted sources in its report as saying, “India will have to focus on competitive energy sources. We welcome such proposals from all producers. Indian traders also work to explore the best options in global energy markets.” Huh.”
Russia has offered India a discount on crude oil and other commodities after the United States and its allies imposed sanctions on Moscow in response to President Vladimir Putin’s decision to attack Ukraine last month.
A Hindustan Times report said that in the backdrop of massive sanctions being imposed on Moscow, European corporations are currently refraining from importing Russian oil.
According to the Financial Times, Russian oil shipments to India, the world’s third-largest energy user, doubled in March. In March alone, Russia sold 360,000 barrels of oil per day to India, nearly four times the 2021 average.
Commodity monitoring and analytics business Kepler reported that Russia is on track to reach 203,000 barrels per day for the full month based on current export plans.
Meanwhile, the Ministry of External Affairs said that India imports most of its oil requirements.
Foreign Ministry spokesperson Arindam Bagchi was quoted as saying by PTI in his report, “India’s oil requirements are largely met by imports. So we are always exploring all possibilities in the global energy markets because of this situation we have to It has to import its oil requirements.”
“I just want to highlight that many countries are doing this, especially in Europe, and for the time being, I will leave it there. We are a major oil importer and we are looking at all the options at all points, We need this energy,” says Bagchi.
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Reports suggest that imports supply 85 per cent of India’s crude oil demand.
However, Russia accounts for barely 1% of its total crude oil imports (about 45,000 barrels per day in 2021). While this may not sound like much, the exemption on Russian oil will undoubtedly reduce India’s import spending.
According to a recent analysis by Nomura Research, every 10% increase in crude oil prices results in a 0.3 percent increase in India’s current account deficit (CAD), and hence a weaker rupee.