India's Strategic Oil Sourcing: Balancing Global Norms and National Interests

Indian oil refiners are persisting in their procurement of Russian oil, despite external pressures, according to sources speaking to ANI. Their procurement strategy is informed by factors like price, crude grade, and logistical concerns, ensuring their decisions align with economic imperatives.

Explaining India's choice, sources noted Russia's significant standing as a crude oil producer and exporter. Concerns over market disruptions initially sent Brent crude prices soaring to $137 per barrel in March 2022. With 85% oil import reliance, India strategically adapted to secure affordable energy, maintaining compliance with international guidelines.

This approach faced scrutiny when US President Donald Trump suggested India might halt Russian oil imports, a claim swiftly rebutted. Despite threats of US tariffs, Indian refineries paused Russian oil purchases. Yet, they continue adhering to global mechanisms like the G7/EU price-cap, supporting market liquidity and price stability.

It's crucial to note Russian oil isn't sanctioned, unlike Iranian or Venezuelan imports. Indian oil firms comply with the $60 price cap for Russian oil, following international norms. Meanwhile, EU's significant engagement with Russian LNG reflects broader global energy dependencies and challenges.

Media reports on India ceasing Russian oil purchases were firmly rejected by sources. Despite President Trump's remarks on potential penalties, India maintains its strategic oil sourcing, contributing to global energy stability and aligning with international frameworks.

(With inputs from agencies.)