India Slams West, Buys More Oil From Russia

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What has happened?

India is expected to deepen energy cooperation with Russia as several major western economies have continued to source Russian energy despite tough U.S. sanctions against Moscow’s rulers.
An official confirmation in this regard came in the backdrop of reports that after the Indian Oil Corporation (IOC),
The Hindustan Petroleum Corporation Ltd (HPCL) has bought two million barrels of Russian crude oil as Indian energy majors forge ahead with attempts to secure a part of Russian energy supply.

In response to a question on whether India would opt for Russian energy which is reportedly being offered at a “discount”, an informed source said, “We will take it.”
The policy decision, it appears, is part of India’s plans to ensure energy security as the oil and gas market continues to witness volatility in the backdrop of European developments of the past few weeks.
The official clarified that the energy cooperation with Russia will require some necessary adjustments in the financial front because of the challenges posed by the American sanctions.

The comments from the senior official indicated the government has adopted a pragmatic approach in this matter and is likely to forge ahead.
Already, like IOC, HPCL also bought Russian Urals crude via European energy trader Vitol.
Another similar energy consignment is expected as the Mangalore Refinery and Petrochemicals Ltd (MRPL) has floated a tender, seeking one million barrels of same kind of crude oil.
The Indian orders for Russian crude oil are prompted by the fact that the recent Western sanctions have forced many countries to avoid Russian oil and gas.
This has created an opportunity for some of the major energy importers like India who can source Russian crude from
the market at special discounts.
The sources said IOC, the nation’s top oil firm, late last week bought three million barrels of Urals through Vitol for May delivery at a discount of $20-25 a barrel to dated Brent.

However, companies that are deeply engaged with the U.S. economy may not be able to purchase Russian crude.
This is evident in the case of Reliance Industries Ltd, operator of the world’s biggest refining complex,
Which may avoid purchase of Russian energy as it has a huge exposure in the U.S. and the sanctions against Russia may hurt its business.
The U.S. has increased diplomatic pressure on India to stop buying Russian energy.
White House spokesperson Jen Psaki equated purchasing energy from Russia with “support for the Russian leadership” and said, “Also think about where you want to stand when history books are written at this moment in time.”

India on Friday called out Western duplicity after the U.S. urged the country to stop buying Russian oil and gas.
An informed source said India’s energy sector was dependent on large imports and that the country’s dependence on imported energy should not be “politicised.”
“Countries with oil self-sufficiency or those importing themselves from Russia cannot credibly advocate restrictive trading,” said the source.
Among the top buyers of Russian oil and gas are Germany, Italy, France, and the Netherlands.
The source pointed out that apart from the major countries of Europe, even frontline states such as Poland, Lithuania, Romania and Finland were importing vast quantities of Russian crude oil.

The issue is expected to feature in talks during Japanese Prime Minister Fumio Kishida’s March 19-20 visit for the 14th India-Japan summit.
In a statement issued on Friday, Australian Prime Minister Scott Morrison said, Ukraine will be in the agenda during his virtual meeting with Prime Minister Modi on March 21.
The pressure on India to stop purchase of Russian oil and gas has increased in the backdrop of intensifying attacks on Ukraine.
On Friday, Russia carried out a major attack on the airport of the historic city of Lviv, near the Polish border.
Similar geopolitical crises in the past, relating to Iran and Venezuela, had forced India to opt for alternative sources of energy, which came “at a higher cost,” said the source.

Earlier, an official of the Ministry of External Affairs said India was “exploring all possibilities” to ensure energy security.
“We are a major oil importer and we continue to have necessity regarding oil and gas,” said Arindam Bagchi.
Russia was not among the top energy suppliers to India in the past, though there were signs in recent years of broadening collaboration on that front.
Last year ONGC and IOC signed memoranda of understanding (MoUs) with Russian energy giant Gazprom.

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