MUMBAI: Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Friday stated that there are no sanctions on purchasing Russian crude oil and warned that any disruption in supplies could have serious global consequences.
Citing India’s adherence to sanctions on countries like Iran and Venezuela, Puri emphasized that India has consistently acted as a responsible member of the international community.
His remarks come amid the US imposing punitive duties of 25%—on top of existing tariffs—on India for buying crude oil and arms from Russia.
Speaking to reporters during ongoing trade negotiations between the US and India, Puri highlighted that Russia is the world’s second-largest crude supplier, producing nearly 10 million barrels per day. He cautioned that any disruption in Russian oil supplies would force cuts in consumption, with significant global repercussions.
“Energy is indispensable. Remove the second-largest producer, and consumption must be reduced. The consequences are serious,” he said.
The minister noted that this is why the international community has largely refrained from imposing sanctions on Russian oil. He added that price caps exist for purchases from Russia, and Indian companies are encouraged to buy at lower rates whenever possible.
Puri further pointed out that countries like Turkey, Japan, and members of the European Union continue to buy Russian crude. However, he observed that the current discounts offered by Russia are not particularly steep.
Highlighting the need for balance between supply and demand, Puri projected that crude oil prices are likely to remain in the range of USD 65–68 per barrel. He also noted that it aligns with US interests—a major oil and shale gas producer—to prevent fossil fuel prices from falling sharply, given domestic inflation concerns and the political sensitivity surrounding energy costs.
On India’s procurement process, Puri stressed that state-run oil marketers independently decide their crude sources and are guided by professional management and boards.
