Practice before preaching, India says on buys of Russian crude

https://ift.tt/7KYiAqD

New Delhi, March 19

The Government has hit out at alarmist reports on its oil companies purchasing Russian crude and thereby allegedly sabotaging western efforts to isolate Moscow.

Countries with oil self-sufficiency or those importing themselves from Russia cannot credibly advocate restrictive trading, said sources here in reference to the US which does not import crude and Germany, Italy and Finland which are continuing to take in Russian oil and gas in large volumes.

In comparison to many of these countries, Russian oil imports are a miniscule proportion of overall Indian imports. In contrast, 75 per cent of Russia's total natural gas exports go to Germany, Italy and France and large quantities of crude to Netherlands, Italy, Poland, Finland, Lithuania and Romania as against Moscow meeting less than 1 one per cent of Indian requirement.

The western media has highlighted Indian companies buying 3.6 lakh barrels per day of heavily discounted Russian crude this month. But it still is a very small proportion of the total daily imports of about 50 lakh barrels, including 23 per cent from Iraq, Saudi Arabia 18 per cent, UAE 11 per cent and the US 7.3 per cent. In fact, imports from the US are expected to increase substantially in the current year, probably by around 11 per cent and its market share will rise to 8 per cent.

"India has to keep focusing on competitive energy sources. We welcome such offers from all producers. India's legitimate energy transactions should not be politicised," said the sources while pointing out that each western strategic adventure enforced by sanctions has posed significant challenges to Indian energy security.

"For obvious reasons, we have had to stop sourcing from Iran and Venezuela. Alternative sources have often come at a higher cost. The jump in oil prices after the Ukraine conflict has now added to our challenges. The pressure for competitive sourcing has naturally increased," they observed.

The Tribune