Blitz Bureau
INDIAN oil refineries will continue to buy oil from Russia, officials have said, before threatened US sanctions next week against Moscow’s trading partners over the war in Ukraine, reports Guardian. Media reports on August 1 had suggested India, a big energy importer, would stop buying cheap Russian oil. Trump later told reporters that such a move would be “a good step” if true.
“I understand that India is no longer going to be buying oil from Russia,” he said. “That’s what I heard. I don’t know if that’s right or not. That is a good step. We will see what happens.”
However, official sources in India, quoted by the news agency ANI, rebutted Trump’s claim, saying Indian oil companies had not paused Russian imports and that supply decisions were based on “price, grade of crude, inventories, logistics and other economic factors”.
Trump’s remarks came a day after the White House announced tariffs of 25 per cent on all Indian goods, along with a penalty for buying arms and energy from Russia amid the war in Ukraine. Trump has given an August 8 deadline for Vladimir Putin to stop the war or risk further sanctions on tariffs on countries that import Russian oil. Earlier last week, Reuters reported that Indian state-owned refineries had suspended Russian oil purchases amid the tariff threats and narrowing price discounts.
But on August 1, the New York Times cited two unnamed senior Indian officials who said there had been no change in Indian Government policy related to importing Russian oil. One said the Government had “not given any direction to oil companies” to cease buying oil from Russia. “These are long-term oil contracts,” one of the sources said. “It is not so simple to just stop buying overnight.”
The sources cited by ANI said Indian oil refineries operated in full compliance with international norms, and that Russian oil had never been directly sanctioned by the US or EU. “Instead, it was subjected to a G7-EU price-cap mechanism designed to limit revenue while ensuring global supplies continued to flow.” They added: “India’s purchases have remained fully legitimate and within the framework of international norms.” The sources also noted that if India had not “absorbed discounted Russian crude combined with Opec+ production cuts of 5.8 mb/d [millions of barrels a day], global oil prices could have surged well beyond the March 2022 peak of US$137/bbl [a barrel], intensifying inflationary pressures worldwide”.
