India Rebukes US for Warning Against Russian Oil Imports

India's public sector business Indian Oil has bought around 3 million barrels of crude oil after Russia offered a deep discount compared with Brent crude. White House press secretary Jen Psaki warned India that buying Russian oil would put the world's largest democracy on the wrong side of history.

In a strong rebuke to the US, India has said that it will continue to import energy from whatever sources suit its interests best, even if that means Russia.

"India's legitimate energy transactions should not be politicised and countries self-sufficient in oil or those importing from Russia cannot credibly advocate restrictive trading," sources in the Indian Foreign Ministry told Sputnik.

White House Press Secretary Jen Psaki on Tuesday warned that buying Russian oil implies "support for an invasion that obviously is having a devastating impact," although she acknowledged the purchases would not violate US sanctions.

Indian government sources added that the jump in oil prices since the Ukraine conflict has increased the need to take advantage of competitive sourcing.

Citing large importers of Russian oil and gas such as Germany, Italy, France, Netherlands, Poland, Lithuania, the sources noted that recent western sanctions on Moscow have exemptions to avoid the impact on energy imports from Russia.

"Russian banks that are the main channel for European Union payments for Russian energy imports have not been excluded from SWIFT," the sources emphasised, sidestepping concerns expressed by several analysts about how the oil purchase from Russia is paid for.

India, the world's third-largest energy-consumer, has secured 3 million barrels of crude oil as Russia offered it a deep discount to prevailing Brent crude.

Sources said that the Russian side provided a 27 to 30 percent discount compared to international rates.

According to commodities data and analytic firm Kpler, India's acquisition from Russia touched 360,000 barrels a day of oil in March so far, nearly four times the 2021 average.

Sources added that India might buy 15 million barrels of crude oil from Russia soon.

Earlier this week, Russia's deputy prime minister Alexander Novak spoke with India's oil minister Hardeep Singh Puri.

"We are interested in attracting further Indian investment to the Russian oil and gas sector and expanding Russian companies' sales networks in India," Novak said.

Energy has become a strong symbol of the long-standing "special and privileged strategic partnership" with Indian and Russian firms that have completed several joint projects since 2016.

Rosneft owns 49 percent of Nayara Energy, India's private firm, which runs the country's second-largest refinery.

A sudden rise in crude oil and gas prices has disrupted the Indian government's budget forecasts for the present financial year.

As 85 percent of India's crude oil requirement (5 million barrels a day) has to be imported, higher prices for these commodities may cost India 1.6 percent of its annual gross national product.

Most imports are from the Middle East (Iraq 23 percent, Saudi Arabia 18 percent, UAE 11 percent). The US has also become an important crude oil source for India (7.3 percent).