US President Donald Trump claimed that India had decided to stop oil imports from Russia. However, it has now been reported that India will continue to buy oil from suppliers from Russia. Sources said that India’s decision to buy oil from Russia is based on price, crude oil quality, logistic and economic reasons.
Trump tariffs India to buy oil from Russia
On July 30, US President Donald Trump announced a 25 percent tariff on India. The tariff was to be implemented from August 1, but then Trump postponed it till 7 August. Announcing the tariff, the Trump government said that crude oil is being bought by India from Russia, which is providing great financial help to Russia and due to this, Russia is continuing attacks on Ukraine. The US asked India not to buy oil from Russia. Trump claimed on Saturday that India would no longer buy oil from Russia.
Trump claimed- India stopped buying oil from Russia
Trump said in the statement, ‘I understand that India will no longer buy oil from Russia. I have heard this, I do not know whether it is correct or not. But this is a good step. Now we have to see what happens next. When the Foreign Ministry spokesman Randhir Jaiswal was questioned about the possibility of India not buying oil from Russia, he replied carefully and said that ‘We take decisions based on the availability of oil in the international market and the global status of that time. As far as your question is concerned, I am not aware of it.
Russia, the world’s second largest crude oil producer
Russia is the second largest producer of crude oil in the world, whose daily oil production is around 9.5 million barrels/per day. This is about 10 percent of the global demand. Russia is also the second largest exporting country in the world, which exports about 4.5 million barrels per day crude oil and 2.3 million barrels per day. After the commencement of the Russian-Ukraine War in 2022, there was a possibility of Russian oil to be out of the market, causing the possibility of rising oil prices globally. However, crude oil prices rose to US $ 137 per barrel in March 2022 due to some obstruction in oil supply. In this challenging environment, India continued to buy oil from Russia following international criteria. India imports 85 percent of its needs and is the third largest energy consumer in the world.
The reason for buying crude oil from Russia
Sources told news agency ANI that, Russian oil was never banned, instead, it was placed under the price limit mechanism of the G7/European union, so that global energy supply continued keeping Russia’s revenue limited. India served as a responsible global energy consumer country and ensuring that the oil market remains liquid and the prices remain stable. India’s procurement has been completely valid and under the purview of international norms. He said that if India had not bought a concessional Russian crude oil at the time of oil production cuts by OPEC countries, global oil prices could have risen more than the US $ 137/barrel in March 2022. This increased inflation worldwide.
Sources also said that during which India bought oil from Russia, at the same time the European Union was the largest importer of Russia’s liquefied natural gas (LNG), which bought 51% of Russia’s LNG exports. China then finished third with 21% and Japan 18%. Similarly, for pipeline gas, the European Union bought 37%of Russia’s gas, followed by China (30%) and Turkey (27%). Sources said that ‘Russian oil has never been banned nor has it been banned by the US or European Union yet. Indian oil marketing companies are not buying crude oil from Iran or Venezuela, which the US has actually imposed. Oil marketing companies have always followed a $ 60 price limit for Russian oil recommended by the US.