India to continue Russian oil imports despite US waiver expiry
What's the story
India is likely to continue its import of crude oil and cooking gas (LPG) from Russia even after the US's one-month sanctions waiver on such imports expires. The decision comes despite the US Treasury Secretary Scott Bessent announcing that the waiver will not be extended. The Indian government has said it sources energy based on commercial viability and from a wide range of suppliers.
Import strategy
US decision won't dictate India's import strategy
US's decision on sanctions waivers is its own prerogative and won't dictate India's import strategy, reported the Mint citing a person familiar with the developments. "Efforts are on for further LPG purchases from Russia. Also, import of both crude and LPG is likely to continue from non-sanctioned entities," the person said, as quoted by Mint. Indian refiners are already negotiating future cargoes after securing a total of 800,000 tons of LPG supplies from Russia, Australia, and the US.
Supplier dynamics
US likely to remain India's main LPG supplier
As per the report, Russian LPG volumes contracted so far are limited and shipments haven't reached India yet. However, the US is likely to remain India's main LPG supplier in the current environment. Before the US-Iran war started on February 28, West Asia accounted for nearly 60% of India's total crude oil imports. However, that share has now dropped to nearly 30%. In March, India was the second-largest buyer of Russian fossil fuels after China.
Energy diversification
India diversifies energy sourcing
The Indian government has stressed on its diversified approach to energy sourcing. "We have been buying oil from diversified sources," External Affairs Ministry spokesperson Randhir Jaiswal said. Petroleum Secretary Neeraj Mittal also revealed that India now procures crude from 41 countries compared to 27 earlier. LNG imports now come from 30 countries versus six previously, while LPG is sourced from 16 countries compared with 10 earlier.