India is confident it can meet its oil requirements through alternative sources if Russian supplies are disrupted by secondary sanctions, Oil Minister Hardeep Singh Puri said on Thursday.
Earlier this week, U.S. President Donald Trump warned that countries purchasing Russian exports could face sanctions if Moscow fails to reach a peace agreement with Ukraine within 50 days.
Separately, NATO Secretary General Mark Rutte warned on Wednesday that some countries, including India, could be hit very hard by the sanctions if they continued to do business with Russia.
India should be able to deal with any problems with Russian imports by seeking supplies from other countries, Puri said. He noted there are many new suppliers coming onto the market, such as Guyana and supply from existing producers such as Brazil and Canada.
Additionally, India is increasing exploration and production activities.
“I’m not worried at all. If something happens, we’ll deal with it,” Puri said at an industry event in New Delhi.
“India has diversified the sources of supply, and we have gone, I think, from about 27 countries that we used to buy from to about 40 countries now,” he said.
‘Overriding Priority’
Responding to Rutte’s comments, India’s foreign ministry spokesperson said that securing energy needs was an “overriding priority” for the country, in which it was guided by what was on offer in markets and the “prevailing global circumstances”.
“We would particularly caution against any double standards on the matter,” spokesperson Randhir Jaiswal told a regular media briefing.
India’s oil imports from Russia rose marginally in the first half of this year, with private refiners Reliance Industries Ltd and Nayara Energy making about half of the overall purchases from Moscow.
Russia continued to be the top supplier to India, accounting for about 35% of India’s overall supplies, followed by Iraq, Saudi Arabia, and the United Arab Emirates, the data showed.
In case Russian supplies are hit, Indian Oil Corp will “go back to the same template (of supplies) as was used pre-Ukraine crisis when Russian supplies to India were below 2%,” company Chairman A.S. Sahney told reporters at the event.
(With inputs from Reuters)
