US President Donald Trump’s threats to countries buying Russian oil don’t worry him at all, said India’s Minister of Petroleum and Natural Gas, Hardeep Singh Puri.
“I’m not worried at all. If something happens, we’ll deal with it,” said the minister at the Urja Varta annual conference of the Directorate General of Hydrocarbons (DGH) in New Delhi on Thursday, adding that there are many new suppliers coming onto the market, such as Guyana.
“Supplies can also be ramped up from existing producers, such as Brazil and Canada,” he stated.
India played down the threat of US imposing 100 per cent sanctions on it if Moscow fails to reach a peace agreement with Ukraine within 50 days.
The country imports more than 85 per cent of its requirement of crude oil; almost 40 per cent of it from Russia since the past three years. The crude oil, which is turned into fuels like petrol and diesel, powers the country’s industry, automobiles, and various other important sectors.
India is currently the world’s third-largest oil importer. Before Russia’s invasion of Ukraine in February, 2022, India’s main source of oil supply was the Middle East. However, after the West shunned Russian crude following its invasion of Ukraine, Russia began offering steep discounts to its trade partners, an opportunity that India took advantage of.
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Puri said he is confident of meeting India’s crude oil needs from “alternative sources”, which includes hunting for new deposits of oil within the country and quickly bringing them to production.
In the face of the latest threat of sanctions or steep tariffs, India’s stand remains unclear on whether it will face US pressure or resort to importing oil from other countries and buckle under the US’s threats.
It did clarify, however, that it will “deal with any problems with Russian imports be seeking supplies from other countries”.
“India has diversified the sources of supply and we have gone, I think, from about 27 countries that we used to buy from to about 40 countries now,” Puri said.
Indian Oil Corp chairman, A S Sahney, said the country could “go back to the same template (of supplies) as was used pre-Ukraine crisis when Russian supplies to India were below 2 per cent,” in the event of Russian supplies being hit.
Also Read: India’s Russian oil deal prevented $130 crude spike, says Puri
Meanwhile, economic think tank, GTRI, advised India against bowing to US pressure to stop purchasing oil from Russia and instead continue buying the commodity from Moscow, especially as it had helped India manage inflation and maintain economic stability in a volatile global environment.
“India must reject this pressure and stay firm on its Russia strategy. Buying discounted Russian oil has helped India manage inflation and maintain economic stability in a volatile global environment,” said Ajay Srivastava, the Global Trade Research Initiative (GTRI) founder.
He also said that altering that policy will not stop US threats, but will rather invite more.
“This isn't an isolated demand, Trump regularly issues tariff threats for various reasons,” he added.
Srivastava said a trade deal with the US will not guarantee protection to India against the US’s unpredictable demands.
“Trump could shift the goalposts later,” he said.
Also Read: India's Russian oil import hits 11-month high in June
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