India Wishes Energy Trade To Not Be Politicalized
While the Ukrainian war has pressured India to move with caution with its energy imports from Russia, it did a significant pickup last week at discounted rates. The United States has warned against indulging in supporting imports from Russia. The Ukrainian war is being supported worldwide through sanctions and tightening the import noose on Russia.
India has started to look for ‘competitive energy sources’ but has also said that it is best not to politicalized its legitimate energy transactions. With its, it is definitely hinting at the huge import of about three million (30 lakh) barrels of Russian crude oil to the Indian Oil Corporation last week, according to confirmed reports.
The country knows its limitations: it is highly dependent on crude imports. So, while it does not condone the war, he has not taken sides at the recent UN Council meeting for a no-confidence vote against Russia.
Nearly 85% of India’s crude oil requirement has to be imported, most of which are from West Asia – 23% from Iraq, 18% from Saudi Arabia, and 11% from UAE, said a government source. The United States has also now become an important crude oil source for India, making up for 7.3% of the imports. Imports from the US are expected to increase substantially in the current year, probably by around 11%.
While India continues to buy from Russia, US is not threatening it with sanctions, but an emotional high ground of ‘not being on the right side of history.’ Meanwhile, everyone is also encashing on Russia’s dipping economy and cut down prices of crude. So, India has worded itself carefully- it might continue to not take oil from Venezuela or Iran but might choose to take it from Russia after all.