Why India is stepping up efforts to source crude oil from Russia
In the wake of rising global fuel prices since the start of the conflict in Ukraine, adding to India’s challenges, India has welcomed competitive bids from all energy producers, including Russia.
As the pressure for competitive supply naturally increases, the people said on condition of anonymity while explaining the government’s decision to opt for cheaper energy from sources such as Russia. Russia has offered crude oil and other commodities at reduced rates to India after the United States and its allies imposed sanctions on Moscow following President Vladimir Putin’s decision to invade Ukraine last month, in accordance with the Hindustan time report.
According to commodity data and analytics company Kpler, India’s imports of crude oil from Russia in March this year are nearly four times higher compared to the corresponding period of the year so far. last. India’s crude oil imports from Russia averaged nearly 360,000 barrels a day in the first half of this month. Based on current shipping schedules, the average oil trade between the two countries is estimated at around 203,000 barrels per day, according to the news agency. ANI reported.
It comes at a time when European companies are avoiding buying Russian oil due to high-profile sanctions concerns. Russian oil exports to India, the third-largest energy consumer, quadrupled in March, FinancialTimes reported Friday.
“Geopolitical developments have posed significant challenges to our energy security. For obvious reasons, we had to stop sourcing oil from Iran and Venezuela,” one of the people quoted above said, referring to India’s decision to end oil imports. from Iran and Venezuela – two of the cheapest sources of energy for New Delhi – because “India must continue to focus on competitive energy sources. We welcome such offers from all growers. Indian traders are also operating in global energy markets to explore the best options,” the person said.
“India’s legitimate energy deals should not be politicized,” the person added. Energy from alternative sources has often cost more, and soaring prices after the conflict in Ukraine have added to India’s challenges. increased,” the person said.
India is heavily dependent on imports for its energy needs, and almost 85% of the country’s crude oil needs – or five million barrels a day – are imported, according to Hindustan time report. Most of these imports come from West Asia, with Iraq accounting for 23%, Saudi Arabia 18% and the United Arab Emirates 11%.
Additionally, the people noted that Russia has so far been only a ‘marginal supplier’ of crude oil to India, accounting for less than 1% of the country’s needs and not being among the top 10 sources. . government arrangement for energy imports, the people pointed out.
At a time when the United States (US) and its Western partners have intensified pressure on India to take a tougher stance on the Ukraine crisis, people have pointed out that Russian oil and gas are being bought by countries around the world, especially those in Europe. Almost 75% of Russia’s total natural gas exports go to European member states of the Organization for Economic Co-operation and Development (OECD), such as Germany, Italy and France.
(With agency contributions)
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