Key Takeaways
- India said it would continue buying oil from diversified suppliers.
- The US passed sanctions targeting Russia's energy and defence sectors.
- India has nearly doubled crude imports from Russia since the US-Iran conflict.
India has stated its intention to take 'all necessary measures' to protect its trade and economic interests following the US passing sanctions against Russia over its invasion of Ukraine. The US legislation, which targets Russia's energy and defence sectors, as well as President Vladimir Putin and other senior officials, aims to limit Moscow's access to Western markets and financial resources.
In a statement, India's foreign ministry emphasized its commitment to ensuring energy security for its 1.4 billion people, stating that it would continue to do so through diversified sourcing and based on evolving market dynamics. India has been a key strategic partner and military supplier to Russia, and the ministry highlighted the importance of this relationship in recent discussions with US officials.
The Indian side has made clear its determination to protect its trade and economic interests, particularly in light of the potential implications for the bilateral relationship and the international energy market. This commitment comes as India has significantly increased its crude oil imports from Russia since the US-Iran conflict, nearly doubling imports to 2.25 million barrels a day in March.
Shipments from Russia reached a record 2.81 million barrels a day in July, according to trade intelligence firm Kpler, but have since dropped back to 2.07 million barrels last month. Despite the decrease, India remains committed to maintaining its energy supply from Russia, as evidenced by its ongoing imports.
The Indian government has also noted that this issue has been discussed at high levels with various US interlocutors in recent months. The ministry stated that its potential implications for the bilateral relationship and the international energy market have been very clearly articulated by the Indian side.
India's foreign ministry added that it would continue to buy oil from 'diversified' suppliers, indicating that it is not solely relying on Russia for its energy needs. However, the ministry also emphasized the importance of maintaining its strategic partnership with Russia, which has been a key supplier of military equipment and other critical goods.
The US legislation, which gives President Donald Trump authority to impose tariffs of up to 100 per cent on major buyers of Russian oil and gas, including potentially China and India, is seen as a significant challenge to India's energy security. However, India has stated that it will not be deterred and will continue to protect its economic interests through diversified sourcing and market dynamics.
India's commitment to protecting its economic interests comes as it navigates the complex geopolitical landscape, balancing its strategic partnership with Russia and its need to maintain good relations with the US and other Western powers. The ministry's statement reflects India's determination to safeguard its energy security and economic interests in the face of these challenges.
