Russia now the biggest Oil Supplier to India: Despite a $60 per barrel price restriction in the West, Russia remained the largest supplier of crude oil to India in terms of value in February, according to official data. In February, India imported crude oil worth $3.35 billion from Russia, with Saudi Arabia coming second at $2.30 billion and Iraq at $2.03 billion.
April 2023 Current Affairs Quiz
Russia now the biggest Oil Supplier to India: Key Points
- During the period from April to February, India’s imports of Russian oil surged to $27 billion, placing Russia as the second-largest crude oil exporter to India in FY23, following imports from Iraq which totaled $30 billion.
- Other big exporters included Saudi Arabia with $26.8 billion, the UAE with $15.6 billion, the United States with $10.05 billion, and Kuwait with $7.59 billion.
- In February, Russia continued to be the leading oil exporter, with India importing crude oil worth $3.35 billion from Russia, $2.30 billion from Saudi Arabia, and $2.03 billion from Iraq, indicating that there was little change in the import trends despite the price cap imposed in December.
India’s Oil Needs fulfilled by Imports: Deepto Roy
- According to Deepto Roy, a Partner at Shardul Amarchand Mangaldas & Co, because 80% of India’s oil needs are met by imports, and a substantial portion of that is met by Russia, it is strategically crucial for India deep continue importing Russian crude even if the price cap is exceeded.
- However, whether Indian companies should buy above the price cap would depend on various factors, such as the availability of alternative sources.
- Additionally, Indian entities purchasing Indian crude are not recognized or subject to sanctions under Indian law.
- Companies could face sanctions from international banks, shareholders, or directors, according to Roy. The sanctions system is intricate and extensive, so Indian companies should seek legal guidance on how sanctions could affect them and what steps they should take.
G7’s attempt to limit Russia Oil Revenue
- BP’s top economist, Spencer Dale, recently commented that the price cap imposed by the G7 countries aimed to limit Russia’s oil revenue while ensuring a sufficient oil supply.
- He observed that the price cap has been more successful than expected in achieving this goal.
- For the first time, Russia became a Russia now the biggest Oil Supplier to Indiasubstantial oil supplier to India during the fiscal year 2023, providing oil at subsidised rates throughout the conflict in Ukraine.
- Despite concerns expressed by the West regarding India’s imports from Russia during the conflict, India has remained firm, stating that it will explore all options to secure its energy needs.
- Finance Minister Nirmala Sitharaman recently stated that India could continue purchasing Russian oil even if the price exceeded the cap.