Can Russia's Oil Exports to India Recover Soon?
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Synopsis
As Russia navigates the challenges of Western sanctions, Kremlin spokesperson Dmitry Peskov insists that the dip in oil exports to India is a transient issue. With a focus on maintaining energy trade, both nations seek to strengthen their economic ties amidst geopolitical tensions.
Key Takeaways
- Russia expects a rebound in oil exports to India.
- Western sanctions are viewed as a temporary setback.
- Trade between the two nations reached $65.70 billion.
- Efforts are underway to address trade imbalances.
- Indian companies are adjusting to new sanctions.
New Delhi, Dec 2 (NationPress) Russia anticipates a resurgence in its oil exports to India and perceives the current reduction, attributed to Western sanctions, as a mere temporary setback, stated Kremlin spokesperson Dmitry Peskov on Tuesday.
"There may be, for a very brief duration, negligible reductions in the oil trade volume," Peskov remarked during a video conference with Indian journalists organized by Russia's Sputnik news agency.
In the virtual press briefing preceding President Vladimir Putin's upcoming visit to India, he emphasized that Russia persists in delivering energy to India at competitive rates, describing it as a mutually beneficial arrangement.
Addressing the sanctions imposed by the US and Europe, which he deemed illegal, Peskov asserted: "We reject these restrictions and are diligently working to maintain our trade and guarantee the supply of oil and oil products. Our efforts are proving successful.”
"We are committed to exploring avenues to uphold our right to sell oil and ensure the rights of those wishing to buy our oil. We are focused on establishing an environment that facilitates these rights," he elaborated.
Peskov highlighted the necessity for trade between Russia and India to be safeguarded from external pressures, indicating that payment methods would be discussed in the talks between the leaders of both nations.
Following the Ukraine conflict, India emerged as the leading purchaser of Russia's seaborne oil. However, it has recently reduced crude imports due to sanctions targeting key Russian producers, Rosneft and Lukoil. Subsequently, Europe has also implemented sanctions against the acquisition of petroleum products derived from Russian crude.
In October, Reliance Industries announced its adherence to EU guidelines concerning the import of refined products into Europe, in response to the recent sanctions imposed on Russia's crude oil exports.
The company reiterated its commitment to comply fully with any directives from the Indian Government regarding this matter.
Both Mangalore Refinery and Petrochemicals Ltd and Hindustan Petroleum Corp have ceased purchasing Russian oil, while Indian Oil Corporation has placed orders for Russian oil sourced from non-sanctioned entities.
For the fiscal year 2023–24, the bilateral trade between India and Russia reached $65.70 billion, with Indian exports valued at $4.26 billion and imports totaling $61.44 billion.
Peskov acknowledged the trade imbalance, expressing that Russia aims to increase imports from India.
"There exists a significant trade imbalance. We recognize this and sell considerably more to India than we buy. We are aware of our Indian friends' concerns. We are actively seeking opportunities to enhance imports from India to Russia and express our desire to procure more from India," he noted.
Point of View
Our stance remains firmly aligned with national interest. The ongoing dynamics between India and Russia, particularly in the energy sector, are crucial for India’s energy security and economic stability. We advocate for a balanced approach that prioritizes national interests while navigating international relations.
NationPress
02/12/2025
Frequently Asked Questions
What caused the decline in Russian oil imports to India?
The decline in Russian oil imports to India is primarily due to Western sanctions imposed on key Russian producers, including Rosneft and Lukoil.
How does Russia plan to address the trade imbalance with India?
Russia acknowledges the trade imbalance and is actively seeking opportunities to increase imports from India to enhance bilateral trade.
What is the current status of India-Russia oil trade?
Despite recent reductions in imports, Russia continues to supply energy to India at competitive prices, viewing the current decline as a temporary phase.
How are Indian companies responding to the sanctions on Russian oil?
Indian companies like Reliance Industries have indicated their compliance with EU guidelines and have adjusted their purchasing strategies in light of the sanctions.
What is the significance of the $65.70 billion trade figure?
The $65.70 billion figure represents the total bilateral trade between India and Russia for the fiscal year 2023–24, highlighting the importance of their economic relationship.
