Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Friday clarified that there are no sanctions on the purchase of Russian crude oil, warning that a disruption in supplies could have serious repercussions globally.
Speaking to reporters amid ongoing US-India trade negotiations, Puri cited examples of Iran and Venezuela, noting that India has consistently complied with international sanctions as a responsible global player.
The minister’s remarks come in the backdrop of the US imposing 25% punitive duties on India—in addition to existing tariffs—for purchasing crude oil and arms from Russia.
“Energy is something you cannot do without. If you remove the second-largest producer, you will have to cut consumption. The consequences are pretty serious,” Puri said, highlighting that Russia is the world’s second-largest crude supplier, producing nearly 10 million barrels a day.
Puri added that price caps are imposed on Russian oil purchases, and Indian companies are advised to buy at lower prices whenever such discussions arise. He further noted that countries including Turkey, Japan, and the European Union continue to purchase oil from Russia, although current discounts offered by Russia are modest.
The minister emphasized the importance of a “broad equilibrium” between oil supply and demand, projecting crude prices to trade between USD 65-68 per barrel in the near term. He also suggested that the US, heavily reliant on shale gas and sensitive to inflation, has a strategic interest in keeping fossil fuel prices stable.
Puri stressed that state-run oil companies independently decide their crude procurement sources, guided by professional management and boards.
