NEW DELHI: India stated on Thursday that its approach to crude oil procurement prioritizes securing “affordable energy from diverse sources” to maintain energy security. This comes as refiners are observed to be gradually reducing their reliance on Russian energy, with an increasing interest in oil and gas imports from the United States.
Amidst efforts by US President Donald Trump to resolve the conflict between Russia and Ukraine, India has been experiencing heightened pressure from the US and its European allies to decrease its purchases of Russian oil. This pressure intensified after the US imposed sanctions on major Russian energy firms, Rosneft and Lukoil, which have been significant suppliers to Indian refineries.
External affairs ministry spokesperson Randhir Jaiswal reiterated India’s long-standing position on energy sourcing during a weekly media briefing. “Our stance on the broader issue of energy sourcing is well-established. In this pursuit, we are guided by the necessity of obtaining affordable energy from varied origins to fulfill the energy security requirements of our 1.4 billion citizens,” he stated.
Jaiswal confirmed that India is actively studying the implications of the recent US sanctions targeting Russian oil companies. “Naturally, our decisions will take into account the evolving landscape of the global market,” he added.
He also mentioned that India and the US are continuing discussions to finalize a bilateral trade deal, referring further inquiries to the ministry of commerce for details.
These remarks followed President Trump’s announcement in South Korea about the US pursuing a trade deal with India.
Sources familiar with the matter indicated a decrease in India’s Russian crude oil procurement following the latest US sanctions. However, they also suggested that a complete cessation of energy imports from Russia is unlikely.
The recent sanctions by the US and the European Union were imposed just over a month before Russian President Vladimir Putin’s planned visit to New Delhi for an annual summit with Prime Minister Narendra Modi.
Ship-tracking data from Bloomberg reveals a drop in Russian oil shipments to Indian ports. In the four weeks leading up to October 16, the flow averaged 790,000 barrels per day, a significant decrease from the 1.43 million barrels per day recorded in the period ending October 5. The peak this year was 1.97 million barrels per day for the four weeks ending March 30.
Indian refiners have reportedly held off on placing new orders for Russian crude after the US sanctions on Rosneft and Lukoil. Nevertheless, there are indications that Russian energy imports will not cease entirely. Indian Oil Corporation (IOC), the nation’s largest oil refiner, stated that it would not stop buying Russian crude as long as it complies with international sanctions, clarifying that the sanctions target specific entities and shipping lines rather than crude oil itself.
Unnamed sources also suggested that Indian importers are exploring options to procure Russian oil through intermediaries and firms not affected by Western sanctions, noting that most sanctions target specific producers and service providers like shippers and insurers.
President Trump has previously asserted that Indian leadership, including Prime Minister Modi, had indicated a halt in Russian oil purchases, a claim India has refuted.
The US pressure on India to reduce Russian oil imports, based on the argument that these purchases fund Russia’s war efforts in Ukraine, has added to existing strains in New Delhi-Washington relations, particularly following the US imposition of substantial tariffs on Indian goods.
India has criticized these US tariffs as unfair and unjustified, highlighting what it perceives as a double standard, given that European nations continuing to purchase Russian oil and gas have not faced similar punitive measures.