Indian Oil Minister: Our Purchases of Russian Oil Contributed to Global Market Stability
In response to criticisms from American officials, Indian Oil Minister Hardeep Singh Puri confirmed that his country is not "seeking to make illicit gains" from Russian oil imports, noting that these purchases have effectively contributed to the stability of global markets and prevented prices from rising to record levels that could reach $200 per barrel.
Puri's statements, made to The Hindu newspaper on Monday, September 1, coincided with a meeting between Prime Minister Narendra Modi and Russian President Vladimir Putin on the sidelines of a regional summit in China.
In response to accusations from U.S. officials, Puri said in an opinion piece: "Some critics claim that India has become a washing machine for Russian oil, and there can be no claim further from the truth than that."
U.S. Treasury Secretary Scott Pruitt accused India of making "illicit gains" by importing Russian oil at low prices and then reselling refined products at higher prices. For his part, White House trade advisor Peter Navarro stated that India's purchases of Russian crude contribute to funding Moscow's war in Ukraine.
Puri pointed out that the United States targeted India for buying Russian oil, as President Donald Trump imposed tariffs on Indian exports to the U.S. market in an attempt to limit its crude imports.
The Indian minister noted that "Russian oil has never been subject to comprehensive sanctions like Iranian or Venezuelan crude, but is subject to the price cap system imposed by the G7 and the European Union, designed to keep the flow of oil while limiting revenues."
He emphasized that all Indian oil transactions are conducted "through legal shipping and insurance, and through committed traders and audited channels," asserting that "India has not violated the rules, but has contributed to market stability and prevented global prices from skyrocketing."
He concluded by saying: "The broader truth is that there is no substitute for the world's second-largest oil producer, which supplies the market with about 10% of global supplies."
It is noteworthy that India is currently the largest buyer of seaborne Russian oil, having benefited from the significant discounts offered by Moscow after European countries and the United States stopped buying and imposed sanctions on Russia following its invasion of Ukraine in February 2022.
