No Sanctions Exist on Russian Crude Oil Purchases: Indian Petroleum Minister Explains Global Energy Supply Dynamics

Hardeep Puri emphasized that Russia maintains its position as the second-largest global crude supplier according to official records.

Mumbai:

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri clarified on Friday that no sanctions exist on Russian crude oil purchases, warning that global disruption of these supplies would lead to serious consequences.

He referenced cases involving Iran and Venezuela, noting that India has consistently adhered to sanctions as a responsible member of the international community.

These statements come amid recent developments where the US imposed additional 25 percent punitive duties on India, supplementing existing 25 percent tariffs, regarding India's crude oil and arms purchases from Russia.

During discussions with reporters as critical US-India trade policy negotiations continue, Puri highlighted Russia's significant role in global oil supply, contributing approximately 10 million barrels daily, and cautioned about potential worldwide repercussions if this supply chain were interrupted.

"Energy remains an essential resource without alternatives... Removing the second-largest producer would necessitate consumption reductions. The consequences would be extremely serious," Puri explained to reporters in Mumbai.

He identified this reality as the primary reason the international community has refrained from sanctioning Russian oil exports.

Puri mentioned existing price caps on Russian oil purchases, noting that when such discussions arise, he encourages Indian companies to negotiate lower prices.

The minister also pointed out that numerous countries, including Turkey, Japan, and European Union member states, continue purchasing Russian oil.

He added that current Russian discount offerings are not particularly substantial.

Puri stressed the importance of maintaining "broad equilibrium" between oil supply and demand, projecting crude prices to remain between USD 65-68 per barrel in the foreseeable future.

The minister suggested that the United States, as a major oil producer with significant investment in shale gas, benefits from preventing substantial drops in fossil fuel prices.

He elaborated that America's sensitive domestic political environment regarding inflation concerns, combined with its dependence on shale gas production, makes stable price maintenance a priority for US interests.

Puri clarified that state-run oil marketing companies independently determine their crude oil sourcing decisions, emphasizing that these entities operate under professional management structures with established governance boards.