New Delhi, India on Thursday said its crude oil purchases are based on securing energy security from “diverse” sources at affordable prices and it is studying the implications of the latest US sanctions on Russian oil companies Lukoil and Rosneft.
The remarks by External Affairs Ministry Spokesperson Randhir Jaiswal came amid indications that Indian refiners are slowly reducing procurement of subsidised Russian crude oil and looking at imports of petroleum products from the US.
Jaiswal also said that India and the US remained engaged to conclude a trade deal. His remarks came a day after US President Donald Trump said in South Korea that the US is “doing a trade deal with India”.
The external affairs ministry spokesperson, responding to questions on American sanctions on the two Russian oil giants at his weekly media briefing, said New Delhi is studying the implications.
“We are studying the implications of the recent US sanctions on Russian oil companies. Our decisions naturally take into account the evolving dynamics of the global market,” he said.
“Our position on the larger question of energy sourcing is well known. In this endeavour, we are guided by the imperative to secure affordable energy from diverse sources to meet the energy security needs of our 1.4 billion people,” he said.
People familiar with the matter said India’s procurement of crude oil from Russia is witnessing a decline following the latest wave of US sanctions on the two Russian oil producers.
Indian refiners have not placed any new orders for Russian oil after the US last week slapped sanctions on Moscow’s top two crude exporters as they assess the changed scenario to ensure not faulting with any international commitments, it is learnt.
The US last week imposed sanctions on Rosneft and Lukoil, as part of efforts to pressure Moscow into ending its war on Ukraine.
In the last couple of weeks, US President Trump claimed Prime Minister Narendra Modi told him that India will stop buying Russian crude oil.
Following Trump’s first claim, India suggested that there was no such conversation.
To a separate question, Jaiswal said India and the US are engaged in negotiations for the proposed trade deal.
“We continue to remain engaged with the US side to conclude a trade deal and these discussions are continuing,” he said.
US President Trump on Wednesday said that the US is “doing a trade deal with India”. However, the US president didn’t elaborate on it further.
The relations between New Delhi and Washington have been reeling under severe strain after Trump imposed 50 per cent tariffs on Indian goods, including a 25 per cent levies for New Delhi’s procurement of Russian oil.
India described the US action as “unfair, unjustified and unreasonable”.
External Affairs Minister S Jaishankar on Monday held talks with his American counterpart Marco Rubio on the sidelines of the ASEAN (Association of Southeast Asian Nations) summit in Kuala Lumpur.
It is understood that Jaishankar and US Secretary of State Rubio also broadly delved into the proposed trade pact between the two sides.
Jaiswal said the US has granted India six months’ waiver from American sanctions on the Chabahar port project.
