White House Press Secretary Jen Psaki said that the United States (US) understands the reasoning behind India’s decision to purchase discounted oil from Russia, but warned that although the Biden administration will not be placing secondary sanctions against its key ally, India must avoid falling on the “wrong side of history.”
The Indian Oil Corporation (IOC) has purchased three million barrels of Russian oil at a discounted rate since Russia’s invasion of Ukraine began on February 24. According to the Financial Times, India’s purchase of Russian oil imports increased fourfold in March after buying “multiple cargoes of Russian oil as Europe shunned the country’s vast commodities market following western sanctions on Moscow.” 360,000 barrels of Russian oil have entered the country on a daily basis this month, with imports set to remain as high as 203,000 barrels per day for the entire month.
India is the third-largest consumer and importer of energy in the world and imports 80% of its oil. However, only a meagre 2-3 % is imported from Russia, while the rest is imported from West Asian countries, mainly Iraq, Saudi Arabia, and the United Arab Emirates (UAE).
One more relevant factoid. India’s top oil sources are:
— Dhruva Jaishankar (@d_jaishankar) March 15, 2022
1. Iraq 🇮🇶
2. Saudi Arabia 🇸🇦
3. UAE 🇦🇪
4. USA 🇺🇸
5. Nigeria 🇳🇬
6. Canada 🇨🇦
Russia’s share has been between 1%-3% in recent years.
However, with a 40% increase in global prices, India said that it would be “happy to take” Russia’s offer of oil and commodities at a “heavy discount.” In this regard, Indian Minister of Petroleum and Natural Gas Hardeep Singh Puri also spoke with Russian Deputy Prime Minister (PM) Alexander Novak to enhance their partnership in the energy sector.
Against this backdrop, the US has increased its pressure on India and urged it to take a stronger stand against Russia. In a press conference, Psaki confirmed: “We have been in touch, of course, with Indian leaders at a range of levels.” She highlighted that the decision to buy discounted Russian oil does not violate US sanctions, but warned, “The world is watching, where you are going to stand, as it relates to this conflict [and] whether it is support for Russia, in any form as they are illegally invading Ukraine.”
Jen Psaki on if India accepts Russian oil at a reduced costs: "[T]hink about where you want to stand when the history books are written in this moment in time, and support for the Russian leadership is support for an invasion that obviously is having a devastating impact." pic.twitter.com/M8AqWaEjol
— Curtis Houck (@CurtisHouck) March 15, 2022
India has dismissed these criticisms and said that its “legitimate energy transactions should not be politicised.” Sources quoted by the Indian Express said that in light of India’s energy dependency on imports, “countries with oil self-sufficiency or those importing themselves from Russia cannot credibly advocate restrictive trading.” Furthermore, the source pointed out that due to sanctions on Iran and Venezuela, India has already been limiting its energy imports from US-sanctioned countries.
Number of countries in Europe importing energy from Russia, highlights MEA Spox @MEAIndia in response to India getting energy/discounted oil from Russia pic.twitter.com/SBXmDcCJlG
— Sidhant Sibal (@sidhant) March 17, 2022
Indian-media outlet spotlights perceived Western hypocrisy by listing other countries still accepting Russian oil besides India:
— Derek J. Grossman (@DerekJGrossman) March 19, 2022
--China
--France
--Germany
--Greece
--Italy
--Turkey
--Poland
--The Netherlands
--Hungaryhttps://t.co/BEqRjHTMeP
Apart from India, several of the US’ Western allies, such as the European Union (EU) (40% of its gas and 27% of its crude imports), are continuing to import oil from Russia. Moreover, 75% of Russia’s natural gas exports are to the Organisation for Economic Co-operation and Development (OECD) members, including Germany, Italy, and France.