Is India Concerned About US Sanctions on Russian Oil?
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Synopsis
Union Minister Hardeep Singh Puri revealed that India has diversified its oil sourcing to 40 nations, reducing reliance on any single country and easing concerns about US sanctions on Russian oil. This strategic move ensures stability in the global oil market, even amid geopolitical tensions.
Key Takeaways
- India sources oil from 40 countries.
- Concerns over US sanctions are minimal due to diversification.
- Oil imports from Russia have increased to 40 percent.
- India's purchases help stabilize global oil prices.
- Russian crude is priced capped but not sanctioned.
New Delhi, July 17 (NationPress) Union Minister of Petroleum and Natural Gas Hardeep Singh Puri stated on Thursday that India has successfully diversified its oil procurement sources in the global market. This diversification has led the government to be not overly concerned about any potential US actions against Russian oil exports.
While addressing the Urja Varta 2025, the minister highlighted that India now sources oil from 40 countries, a significant increase from 27 nations back in 2007, ensuring a well-supplied global market.
“There is plenty of oil available globally. Although Iran and Venezuela are under sanctions, the question remains: will they stay sanctioned forever? Countries like Brazil and Canada are increasing their production. I am not worried about supply issues at this moment, as we have diversified our sources,” Puri remarked.
This comment was made in light of US President Donald Trump announcing potential secondary sanctions on nations purchasing Russian oil.
On July 15, Trump warned of serious trade restrictions on Russia unless a peace agreement regarding Ukraine is achieved within 50 days. He mentioned that US tariffs on Russian exports could rise to 100 percent and threatened secondary sanctions on countries like India and China that continue to buy oil from Russia.
Responding to Trump’s threats, Puri stated, “I have heard these threats. Some statements are made to ensure two disputants settle an issue.”
Puri further emphasized that India’s purchases of oil from Moscow have been crucial in stabilizing global prices.
He stated that without the India-Russia oil trade, crude oil prices could have surged to $130 per barrel at the onset of the Ukraine conflict in 2022.
Before the Russia-Ukraine war, India sourced only 0.2 percent of its crude imports from Russia; this figure has now escalated to nearly 40 percent.
The minister noted that while Russian crude is under a price cap of $60 per barrel, it is not under sanctions. India remains firm in its policy of not purchasing oil from countries that are sanctioned, as per Puri.
“Russia is among the largest crude oil producers, outputting over nine million barrels per day. If this oil, accounting for about 10 percent of the global oil supply of around 97 million barrels, were to disappear from the market, it would lead to chaos. The world would have to cut down on consumption, driving prices above $120-130,” Puri warned earlier this month.
Point of View
I believe that India's diversified oil sourcing strategy is a crucial step in ensuring energy security amidst global tensions. This approach not only fortifies our economy but also showcases India's diplomatic prowess in navigating complex international relations. We stand by India's commitment to maintain a stable energy supply while respecting international norms.
NationPress
17/07/2025
Frequently Asked Questions
How many countries does India buy oil from?
India currently purchases oil from 40 nations, increasing from 27 countries in 2007.
What is the impact of US sanctions on Russian oil?
The US has threatened secondary sanctions against countries, including India, that buy Russian oil, but India remains unperturbed due to its diversified sourcing.
How much of India's oil comes from Russia now?
India's oil imports from Russia have surged to nearly 40 percent from a mere 0.2 percent before the Russia-Ukraine conflict.
What was the potential impact on oil prices without India's oil trade with Russia?
Without India's trade with Russia, crude oil prices could have skyrocketed to $130 per barrel.
Is Russian crude oil under sanctions?
While Russian crude is capped at $60 per barrel, it is not subject to sanctions, allowing India to continue its purchases.
