New Delhi
India has decided to continue the purchase of oil from its old and trusted ally Russia, ignoring America’s tariff actions. News agency ANI quoted sources as saying that India’s oil refineries are continuing to receive oil from Russian companies. Their supply decisions depend on price, crude oil quality, reserves, logistics and other economic factors.
According to sources, no international ban has been imposed on Russian oil. Instead, a price limit system was implemented by the G7 and the European Union (EU) to continue the global supply by limiting Russia’s income. Indian public sector oil marketing companies have strictly followed the maximum limit of $ 60 per barrel under this framework. Now EU has recommended to reduce it to $ 47.6 per barrel, which will be implemented from September.
India postponed global oil crisis
In March 2022, when the Russia-Ukraine war caused chaos in the international market, Brent crude prices reached $ 137 per barrel. Meanwhile, India took a strategic decision and started purchasing concessional Russian crude oil, which led to balance in the international market and helped to control inflation. According to sources, if India had not bought Russian oil and the OPEC+ countries’ production cuts (5.86 MB/D) would have continued, the oil prices could go above $ 137. This would further deepen inflation and energy crisis globally.
India not only protected its energy interests but also played an important role in keeping the global energy supply smooth. During this time, India did not buy oil from countries like Iran and Venezuela, which are actually US sanctions.
