National Interest Is Top Priority In India's Oil Purchases: Govt

(MENAFN- IANS) New Delhi, March 20 (IANS) India's decision on international oil purchases is based on diverse factors, keeping in mind the country's national interests and priorities, the government told the Rajya Sabha on Thursday.

In answer to a question on“whether it is a fact that the USA had asked India to stop unloading Russian oil tankers and has set a deadline for it,” Minister of State Kirti Vardhan Singh said that, on January 14, the US Embassy in New Delhi shared with the Ministry of External Affairs information pertaining to U.S. Sanctions of January 10, 2025.

These sanctions were imposed by the US Department of Treasury's Office of Foreign Assets Control (OFAC) on over 400 Russian energy sector-related entities including oil majors and their subsidiaries, LNG terminals, insurance companies, oil traders and brokers, oil vessels and providers of oilfield services.

A 60-day winding down period was also announced after which the US shall designate all those that continue to deal with sanctioned parties in Russia's energy sector, the Minister said in a written reply.

The minister said that all necessary steps have already been taken to sensitise all the relevant stakeholders regarding any provisions that could impact Indian oil traders, oil field service providers, and insurance companies.

India has been buying substantial quantities of oil from Russia, despite US sanctions, as they were available at a discount. This has also helped to keep oil prices in the international market in check as India is the third-largest consumer of oil in the world.

However, with the US administration announcing more stringent measures, it is getting increasingly difficult to hire ships and get insurance cover for the movement of Russian oil.

Meanwhile, India has diversified its sources of purchasing oil and the US has also stepped up production which is expected to keep prices under control. India is likely to buy more oil from the US as well as part of this diversified policy to secure its energy needs.

Market analysts are also closely watching the US efforts to bring the Ukraine-Russia war to an end and negotiations are on for a peace settlement.

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