MEA: Studying implications of US sanctions on Russian oil firms

India on Thursday said it was studying the implications of the fresh US sanctions on two Russian oil companies even as New Delhi reaffirmed that its energy decisions would continue to be guided by the imperative of ensuring affordable and reliable supplies for its 1.4 billion citizens.

“We are studying the implications of these sanctions. As we have said before, the decisions that we take naturally take into account the evolving dynamics in the global market,” said Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal.

He said India’s position on the larger question of energy sourcing was well known. “We are guided by the imperative to secure affordable energy from diverse sources for meeting the energy security requirements of 1.4 billion people,” the MEA official said.

Jaiswal said New Delhi would “make its own assessment” of the implications of the American sanctions on the Russian energy firms. “We will have to wait and see what sort of implications they are going to have on us,” he said.

Washington last week announced sweeping sanctions against Rosneft and Lukoil, Russia’s two biggest oil producers, marking a sharp escalation in its pressure campaign over Moscow’s ongoing war in Ukraine. The move led to a nearly 3 per cent spike in the global oil prices. Both firms have extensive international operations in oil exploration, refining and distribution.

Despite the sanctions, state-run Indian Oil Corporation (IOC) — India’s largest refiner — has made it clear that it will not stop buying Russian crude so long as its purchases remain compliant with the new restrictions.

“We are absolutely not going to discontinue buying Russian crude as long as we are complying with the sanctions. Russian crude is not sanctioned. It is the entities and the shipping lines that face sanctions. If somebody comes to me with a non-sanctioned entity, the price cap is being complied with and the shipping is okay, then I will continue to buy it,” IOC Director (Finance) Anuj Jain said after the company’s quarterly results.

Other Indian refiners were likely to adopt a similar approach, industry sources indicated, since the restrictions target specific Russian companies rather than the oil itself.

Asked about the broader state of the India-US ties, especially in reference to the US Secretary of State Marco Rubio’s comments that Washington’s ties with Pakistan were not at the expense of the US relations with India, Jaiswal described the India-US relationship as a “comprehensive global strategic partnership”, noting that discussions to finalise a bilateral trade deal were ongoing. “Both sides continue to hold discussions. For any further update, I would refer you to the Ministry of Commerce,” he said.

On a question about Russian President Vladimir Putin’s potential visit to India, the spokesperson said the India-Russia relationship remained an “important and multifaceted” one. “Both sides are working to further enhance engagement in several areas — economic, space, technology and trade,” he said.