India will continue to buy crude oil from Russia: Government said – no difference due to American sanctions, bought 23 lakh barrels of crude daily in May

India will continue to buy crude oil from Russia even after the sanctions relief provided by America ends. Joint Secretary of the Petroleum Ministry, Sujata Sharma, made it clear in the press briefing on Monday that the purchase of crude oil from Russia will continue in future also.

Ending the exemption from American sanctions will not have any impact on India’s import plan, because this decision of India is not based on any concession to any country, but is purely based on business acumen and the economic interest of the country.

He said that India’s stand has always been clear in this matter. India was buying oil from Russia even before the US concession, bought during the concession also and will continue to do so. The government has already arranged for adequate supply of crude oil as per the need of the country, hence there is no shortage of crude oil in the country.

According to data, India imported a record 23 lakh barrels per day of crude oil from Russia in the month of May.

The deadline given by America has ended on May 16

This statement comes at a time when a recent Bloomberg report claimed that India has asked the US to extend the deadline for exemption on Russian oil imports. In fact, due to the ongoing tension between America and Iran, the supply in the global energy market has been greatly affected.

To control oil prices and maintain supply in the global market, America had issued an exemption in March, which was later extended and valid till May 16. However, since the beginning of the Russia-Ukraine war, Washington has been continuously pressurizing India to reduce the purchase of oil from Russia at a discount.

Supply necessary to stop inflation in domestic market

According to Bloomberg report, Indian officials had made it clear to the US administration that maintaining the country’s oil supply amid fluctuations in the global market is the government’s first priority. Officials had also warned that if there is any interruption in the supply of oil, it will directly impact Indian consumers. Due to this, shortage and inflation of essential commodities like Domestic Cooking Gas (LPG) may increase in the country.

However, there was no official response from India’s Oil Ministry, External Affairs Ministry and the US Treasury Department on this entire matter.

Oil imports from Russia reached record level in May

Before the end of the US exemption deadline, Indian refinery companies have intensified the purchase of crude oil from Russia. According to data from data intelligence agency Kpler, India’s Russian oil import has reached a record level of 23 lakh barrels per day so far in the month of May, which is the highest figure till date. Analysts estimate that the average import for the entire month of May is also going to be around 19 lakh barrels per day.

India has been buying Russian oil for energy needs

In November last year, the Trump administration had imposed stringent sanctions on Russian oil companies Lukoil and Rosneft due to the war with Ukraine. After this, India’s Russian oil imports fell to 11 lakh barrels per day in January, which was the lowest since November 2022.

However, this share has increased again to 30% in February. India has been continuously buying Russian oil at concessional rates to meet its energy needs.

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