India, the third largest oil consumer in the world, is continuing to purchase oil from Russia at a discounted price. According to a Reuters report, Bharat Petroleum Corp Ltd (BPCL) has bought 2 million barrels of Russian Urals for May loading from trader Trafigura.
India imports more than 80 per cent of its total crude requirement.
Reuters said that with BPCL's purchase, India has so far booked at least 16 million barrels of Russian oil since February 24, similar to 2021 imports.
Last week, US deputy national security advisor Daleep Singh during his visit to India last week threatened New Delhi that there would be consequences to countries that actively attempt to circumvent or backfill the sanctions thrashed out against Russia. Incidentally, Russian foreign minister Sergey Lavrov was also in New Delhi around the same time. India, while it has maintained its neutrality over the Russia-Ukraine issue, condemned the killings of civilians in Ukraine’s Bucha and underlined the need for an independent probe.
However, insiders said that India will be guided by its own interests.
“We explained our position very clearly. I will put my country’s interest first and energy security first. If oil is available and at a discount, why shouldn’t I buy it? I need it for my people. We have already started purchasing. The nitty-gritty is being worked out,” Finance Minister Nirmala Sitharaman said at a CNBC-TV 18 group function.
In 2021, India purchased about 12 million barrels of oil from Russia which is just a little more than 2 per cent of its total imports.
But in March and April alone India imported 6 million barrels.
The US earlier said that while the purchase of crude oil from Russia will not violate the stringent sanctions imposed against Russia by the West, Washington warned that it may put India “on the wrong side of history.”
