India’s oil minister, Hardeep Singh Puri, has defended the country’s imports of Russian oil, stating that they have stabilised markets and prevented prices from rising to as high as $200 a barrel. In an editorial published in the Hindu newspaper, Puri argued that India’s purchases have been made within the framework of a G-7/European Union price cap system, which is designed to keep oil flowing while limiting Russia’s revenues.
The US has been critical of India’s decision to continue importing Russian oil, with President Donald Trump imposing tariffs on Indian exports to the US in an attempt to discourage the country’s crude buying. Treasury Secretary Scott Bessent has accused India of profiteering by importing Russian oil at lower prices and then reselling refined fuel at a higher rate. However, Puri maintains that every Indian oil transaction is done using legal shipping and insurance, compliant traders, and audited channels.
India has emerged as the largest buyer of Russian seaborne oil, taking advantage of discounts offered by Russia as it seeks new buyers following European countries’ and the US’s decision to impose sanctions on Moscow for its invasion of Ukraine in February 2022. Puri stressed that Russian oil has never been sanctioned in the same way as Iranian or Venezuelan crude, and that India’s actions are in line with international regulations.
The oil minister’s comments come as Prime Minister Narendra Modi meets with Russian President Vladimir Putin in China at a regional summit. Puri’s defence of India’s Russian oil imports highlights the complexity of the global energy market and the challenges faced by countries as they navigate the impact of sanctions and price caps on oil supplies. By stabilising markets and keeping prices in check, India’s imports of Russian oil have had a significant impact on the global energy landscape.
As the world’s second-largest producer of oil, Russia’s supplies are crucial to meeting global demand. Puri noted that there is no substitute for Russia’s oil production, which accounts for nearly 10% of global oil supplies. With India’s continued imports of Russian oil, the country is playing a critical role in maintaining the balance of the global energy market. The situation will likely continue to be closely watched by international observers, as the interplay between sanctions, price caps, and global demand shapes the future of the energy sector.
