FM Sitharaman lauds PM's decision to ramp up Russian oil imports to manage inflation

File image of FM Nirmala Sitharaman.

Finance Minister Nirmala Sitharaman on September 8 lauded Prime Minister Narendra Modi's decision to boost the import of crude oil from Russia even in the face of the sanctions announced against it following its invasion of Ukraine.

"In a situation where global prices were going beyond anyone's affordability…at that stage to take a very strong political decision I respect the Prime Minister for his courage on this, to get it (oil) from Russia because they are ready to give it to you at discount," Sitharaman said at a conference organised by the Indian Council for Research on International Economic Relations.

"And how speedily did we ramp it up? Where otherwise our entire import of Russian crude was 2 percent or probably sometimes even lesser of the total basket, it was ramped up to almost 12-13 percent. All within a couple of months," the finance minister added.

India's decision to increase oil imports from Russia came amid a sharp surge in global commodity prices, which led to a rapid widening of the merchandise trade deficit and heightened pressure on the rupee's exchange rate.

The increased purchases of Russian oil by India did not go unnoticed, with US President Joe Biden's administration reportedly left disappointed by the actions.

"There are certainly areas where we have been disappointed by both China and India's decisions, in the context of the invasion," Bloomberg reported on April 7, quoting Brian Deese, the director of the White House National Economic Council.

Deese's comments come after White House Press Secretary Jen Psaki said on April 5 that it was not in India's interests to increase its energy imports from Russia.

However, Sitharaman today said Prime Minister Modi deserved credit for ensuring India did not face a backlash due to its actions.

"That's where I give credit to the statesmanship of the Prime Minister to make sure, globally, that we did keep our relationships with all countries but yet managed to get the Russian crude. Which is what Japan is doing today, which is probably what Italy and some other countries are also doing," Sitharaman said.

"So wherever there are sanctions, countries are finding their own ways to get Russian crude, Russian gas. That also is a part of inflation management," she added.