India Seeks US Approval for Oil Imports from Iran and Venezuela Amidst Reduced Russian Crude Purchases
India is seeking to expand its crude oil import sources amid rising tariffs on Russian oil. The country has approached the United States for permission to import oil from Iran and Venezuela, both of which are currently under sanctions. This move comes as India grapples with a 25% penalty on its crude trade with Russia, which has been a significant supplier since the onset of the Russia-Ukraine conflict in 2022. Indian officials have emphasized that limiting access to oil from multiple sources could lead to a global price surge.
Increased Reliance on Russian Oil
Since the Russia-Ukraine conflict began in 2022, India has notably ramped up its crude oil imports from Russia. Data from Finland’s Centre for Research on Energy and Clean Air (CREA) indicates that India has purchased Russian oil worth approximately ₹132 billion (around ₹13.39 lakh crore) during this period. This figure represents about 20% of Russia’s total oil export revenue of ₹640 billion. Despite facing international sanctions, Russian oil remains accessible in global markets, allowing countries like India and China to acquire it at discounted prices.
In addition to oil, India has also imported Russian coal valued at ₹16 billion, bringing its total fossil fuel imports from Russia to ₹148 billion. Since the conflict began, Russia’s total earnings from oil, gas, and coal exports have reached ₹931 billion. Notably, India’s purchases have surpassed those of the European Union, which stands at ₹105 billion, and Turkey, at ₹71 billion. China remains Russia’s largest customer, with total fossil fuel imports amounting to ₹268 billion.
Negotiations with the United States
During a recent visit to the United States, Indian officials reiterated their request to the Trump administration for the ability to import oil from Iran and Venezuela. This request comes in light of the 50% tariffs imposed by Washington on Indian imports. Indian officials have made it clear that any significant reduction in Russian oil purchases would require U.S. approval for crude imports from these sanctioned countries.
The discussions highlighted the potential consequences of restricting Indian refiners’ access to oil from Russia, Iran, and Venezuela simultaneously. Sources familiar with the negotiations indicated that such restrictions could lead to a worldwide surge in oil prices. The Indian delegation emphasized the importance of maintaining a diverse supply of crude oil to ensure energy security.
Future Energy Security Goals
Commerce Minister Piyush Goyal, during his visit to New York, expressed India’s commitment to enhancing its oil and gas procurement from the United States. He stated that India’s energy security objectives would significantly involve U.S. participation. This statement underscores India’s strategic approach to diversifying its energy sources while navigating the complexities of international sanctions and tariffs.
As India continues to rely heavily on imported oil to meet its energy needs, the government is actively seeking to balance its relationships with various oil-producing nations. The ongoing negotiations with the U.S. and the potential for increased imports from Iran and Venezuela reflect India’s efforts to secure a stable and cost-effective energy supply in a challenging geopolitical landscape.
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