Comfortable with India buying Russian oil, ties most consequential: US
The United States (US) is comfortable with India continuing to buy crude oil from Russia and is not looking to sanction it as India-US relations are the most consequential, US assistant secretary for European and Eurasian Affairs Karen Donfried said on Wednesday. Donfried also lauded India's humanitarian efforts to support Ukraine and the call for Russia to end the offensive.
Why does this story matter?
When the Russia-Ukraine war started last February, the Western powers huddled to sanction Russia in an effort to isolate it from the rest of the world. Russia offered oil to India at bargain prices but the West, led by the United States, pressed India not to buy Russian oil. However, India defied the sanctions, asserting that it was the best deal for its citizens.
Russia's energy resources to deplete by 50% by 2030: US
US officials said Russia's reserves would deplete by 50% by the end of this decade. The sanction policy doesn't have universal hearings and the US agrees with the approach that India has taken, the officials said. The results were visible in Russia's budget deficit, they said. They welcomed PM Narendra Modi's comment at the G20 Summit, saying this isn't an era of war.
Russia not a reliable energy supplier: US officials
US Assistant Secretary for Energy Resources Geoffrey Pyatt said that India and the US are pursuing the energy security agenda together. It is important in view of Russian President Vladimir Putin disrupting the global energy market, Pyatt said. Russia is not a reliable energy supplier since it weaponized its oil and gas resources to drive up prices, which are still reverberating globally, he said.
India used leverage to bring down price of Russian oil
Pyatt said although India isn't a participant in the price caps, it still derives negotiating leverage from it. India used it effectively to bring down the price of Russian crude oil, as Russia is restricted from the global market. He said US production of oil is unprecedented in 2024 and India is one of the top 10 markets for US liquefied natural gas (LNG).
January saw record import from Russia
In January, India bought an average of 12.7-14.2 lakh barrels per day, 6% more than December 2022, which saw the import of 12 lakh barrels per day—29% more than November. January's record purchase was 28% of India's total crude imports. While India imports 85% of the total crude oil requirements, 3% of it came from Russia in August.
