Union Finance Minister Nirmala Sitharaman on Friday made it clear that India will continue purchasing Russian oil, stressing that decisions will be guided solely by national interest.
“Whether it is Russian oil or anything else, we will take a call based on what suits our needs in terms of rates, logistics or whatever. Where we buy our oil from, especially it being a big ticket foreign exchange related item, is a call we will take based on what suits us best. So, we will undoubtedly be buying Russian oil," she said in an interview with Network18 Group Editor-in-Chief Rahul Joshi.
She reiterated that the contribution of crude oil to India's import bill is the highest.
India’s crude imports from Russia have soared from under 1 percent of its total supplies before the Russia-Ukraine conflict to nearly 40 percent, as refiners tapped steep discounts left by Western buyers shunning Moscow. Currently, India is the single largest buyer of Russian seaborne crude, even as Europe, after banning Russian oil, turned to refined products from Indian refineries.
Sitharaman also noted that "with a reform like GST, many of the tariff concerns would be offset."
Assuring support for industries facing a 50 percent tariff, Sitharaman said, “We will come out with something to handhold those who have been hit. The package includes a variety of measures, and something is definitely coming to help them.”
Union Oil Minister Hardeep Singh Puri has defended India’s decision to purchase discounted Russian crude, arguing that the country has followed all international rules and played a key role in preventing oil prices from soaring since the Ukraine war began.
India's increased crude oil purchases from Russia has drawn criticism in Washington, with White House trade adviser Peter Navarro accusing New Delhi of funding Russia’s “war machine” and even labelling the Ukraine conflict “Modi’s war.”
"Unlike Iranian or Venezuelan crude, Russian oil is subject to a G7 and EU price-cap system designed to maintain flows while capping revenues. Every Indian transaction has used legal shipping, insurance, compliant traders and audited channels,” Union minister Hardeep Puri said on September 2.
“India has not broken rules. On the contrary, our purchases helped stabilise markets and prevented prices from spiralling," he added.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
