This statement comes after the United States on Tuesday said India would not be violating US sanctions by purchasing discounted Russian oil but added that such a move would put the world’s largest democracy on the “wrong side of history”.
MEA spokesperson Arindam Bagchi stated that it is “always exploring possibilities” in global energy markets as its oil requirements are met by imports.
Asked if India plans to import more oil from Russia, Bagchi said that almost all of India’s energy requirements are imported, and the country is always exploring new options indicating that Russia is one such destination.
The MEA spokesperson pointed out that a “number of countries are importing energy from Russia, especially in Europe. I will leave it at that.” Europe has made it clear that it will continue to purchase oil and gas from Russia for the time being with Europe’s biggest economy Germany even pointing out that any move to stop purchase of Russian energy will impact its economy.
“India does import most of its oil requirements. So, we are always exploring all possibilities in global energy markets because of the situation of importing our oil requirements…,” Bagchi said at a media briefing when asked if India is buying crude oil from Russia.
The Indian government is trying to secure oil supplies from Russia at a discount. Indian Oil Corporation purchased three million barrels of Russian crude oil, the first such transaction since Russian military action in Ukraine. Hindustan Petroleum Corporation Ltd (HPCL) has also bought two million barrels of Russian crude after the move by the IOC. Both have bought Russian Urals crude through European trader Vitol. Mangalore Refinery and Petrochemicals (MRPL) also plans to buy one million barrels of the same crude.
Last Friday India and Russia held detailed dialogue on current and potential joint projects in the fuel and energy industry and probable mechanisms for transactions. This was discussed during a phone call between Russian Deputy PM Alexander Novak and Minister of Petroleum and Natural Gas and Minister of Housing and Urban Affairs Hardeep Singh Puri.
It may be recalled that Puri visited Vladivostok for the 2021 edition of the Eastern Economic Forum. Energy is emerging as a major pillar of Indo-Russian ties after defence. India’s cumulative investment in oil and gas projects in Russia exceeds $ 15 billion. It is the single largest destination of Indian overseas investment in the oil and gas sector. In 2020 Indian Oil Corporation had signed a deal with Rosneft for the annual purchase of 2 million tonne of crude oil. This was the first-ever annual oil purchase deal between the two countries. Russian oil giant Rosneft and its partner in 2017 bought Essar Oil, renamed Nayara Energy, for $ 12.9 billion. Gazprom has been shipping LNG to India under a 20-year contract.
