Russia’s First Deputy Energy Minister, Pavel Sorokin, stated on Tuesday that U.S. sanctions on Russia’s oil exports should not disrupt the country’s energy trade with India.
Indian refiners are currently seeking alternatives after the U.S. sanctions targeted hundreds of tankers and oil traders last month. Since Russia’s invasion of Ukraine and subsequent Western bans on Russian oil, India has become a crucial buyer of Russian crude, alongside China. As a result, Russia has become India’s largest oil supplier.
However, the sanctions have limited the availability of non-sanctioned tankers to transport the oil. India, which relies on imports for over 80% of its daily crude consumption, is facing rising costs as it avoids U.S.-sanctioned tankers. The discounted Russian oil that India once depended on is becoming increasingly scarce.
“We believe energy trade shouldn’t be hindered by any politics,” Sorokin said at the India Energy Week conference on Tuesday. He added that Russia’s relationship with India is based on “economic pragmatism.”
Sorokin also remarked that it is too early to fully assess the impact of the U.S. sanctions on the Russia-India oil trade, but expressed confidence that the two countries would maintain successful cooperation.
For now, India has received confirmation from the U.S. that Russian oil tankers sanctioned last month can still discharge crude at Indian ports until February 27. This temporary relief has provided some assurance, but the long-term impact on trade remains uncertain.
Indian refiners are already looking for oil supplies for after February. India has said it will continue purchasing Russian oil if it is sold below the $60 per barrel price cap, delivered on non-sanctioned tankers, and without involvement from sanctioned companies or individuals.
Related Topics:
- Brent Crude Oil and Silver Prices Struggling, While Copper Price Tests Resistance
- China’s Tariffs May Weaken U.S. Crude Oil Exports
- Traders to Seek Waivers for U.S. Oil Shipments Before China’s Tariff