Here’s a breakdown of the article, focusing on the key points:
India’s stance on Russian Oil Purchases:
Continued Purchases: Despite threats of penalties from former U.S. President Donald Trump, India intends to continue purchasing oil from Russia.
Long-Term Contracts: Indian government sources cited “long-term oil contracts” as a reason why immediate changes are not feasible.
Market Availability and pricing: India’s energy sourcing strategy considers market availability,offerings,and the prevailing global situation. Russian crude is not directly sanctioned and is being bought below the EU price cap.
Justification: India’s imports of Russian oil have helped to keep global oil prices subdued, even with Western curbs on the Russian oil sector.
No Policy Change: unnamed senior Indian officials also confirmed to The New York Times that there had been no change in Indian government policy.
“Steady and Time-Tested Partnership”: India’s foreign ministry spokesperson described India’s relationship with Russia as such, especially concerning energy sourcing.
Donald Trump’s Position:
Threats of Penalties: Trump has threatened penalties for countries purchasing Russian oil and arms, including a potential 100% tariff on U.S. imports from such countries.
Misinformation: Trump had previously stated he heard India would stop buying Russian oil, a claim contradicted by Indian sources. Priority on Ukraine: Trump has made ending Russia’s war in Ukraine a priority.
India’s Role as an Oil Importer:
Leading Supplier: Russia is India’s leading supplier of oil.
Significant Volume: India imported approximately 1.75 million barrels per day of Russian oil from January to June of the current year.
Market Impact: India’s actions, particularly those of its refiners, are seen as helping the effectiveness of the G7 price cap on Russian oil shipments.Recent Developments and Nuances:
Narrowing Discounts: While the government may not be deterred, Indian state refiners have reportedly stopped buying Russian oil recently because discounts have narrowed to their lowest sence 2022.
Specific Refiners: Indian Oil corp, Hindustan Petroleum Corp, Bharat Petroleum Corp, and Mangalore Refinery Petrochemical Ltd have not sought Russian crude in the past week.
* Nayara Energy sanctions: Nayara energy,a refinery with significant Russian ownership and a major buyer of Russian oil,has been sanctioned by the EU,leading to the resignation of its CEO and issues with cargo discharge.
