Despite the increasing pressure of America and the strict warnings of President Donald Trump, India has not made any change in its policy of buying crude oil from Russia. An important report in Bloomberg has revealed that the Indian government has not instructed its oil refineries to stop oil imports from Russia. This step is considered to be a careful decision taken between India’s energy needs and strategic balance.
Strategic silence amid American pressure
According to sources, due to the case being sensitive, information was given on the condition of anonymity that no official decision has been taken so far to stop oil imports from Russia. Both government and private refineries are buying oil according to their commercial interests.
Trump’s criticism and tariff on India
US President Donald Trump on Wednesday criticized India’s dependence on Russian oil and defense equipment. He unexpectedly put 25% tariff on Indian goods and warned of more strict action. Trump also said that he has “heard” that India will stop buying oil from Russia, which he described as “good step”.
India’s stance- market based decision
India has always said that its energy import is based on market status and prices. No changes have been made at the moment under this approach. However, according to Bloomberg’s report, the government has asked the refineries to plan non-Russian crude oil options.
Work on alternative supply plans
According to government sources, this instruction is given under the “Circumstation Plan”, so that the option is prepared if the supply is interrupted from Russia. State -operated companies have been asked to guess how much alternative oil will be needed.
Purchase from Russia continues despite American threats
According to the New York Times report, India will continue to purchase oil from Russia despite the possibility of US sanctions. The report quoted two senior Indian officials as saying that India will give priority to its energy needs.
India becomes the biggest buyer from Russia
After the Ukraine War, India has become the largest country to buy crude oil by sea route from Russia. While earlier this figure was close to zero, now it has almost become about one-third of India’s total oil imports. The US and the European Union consider it an indirect support for Russia’s war efforts.
Purchase from Gulf countries can prove to be expensive
If India stops purchasing oil from Russia, then it will have to buy oil from Gulf countries at expensive rates. This can increase the country’s energy import expenses, which can affect India’s economic condition.
Modi-Putin close and new purchases
There is a close relationship between Prime Minister Narendra Modi and Russian President Vladimir Putin. Modi visited Russia in October, while Putin is expected to visit India this year. Meanwhile, the Indian Oil Corporation has signed a deal to buy at least 5 million barrels from the US and 2 million barrels from Abu Dhabi.