Union Finance Minister Nirmala Sitharaman stated that India cannot abruptly cease purchasing Russian oil and shift to alternative suppliers. She emphasized that global supply constraints and the demands of the country’s 1.4 billion citizens make such a transition unfeasible.
Sitharaman Warns of Rising Oil Prices Amid Shift from Russian Crude
At the BusinessLine Changemaker Awards on Tuesday, Finance Minister Nirmala Sitharaman expressed concerns about the potential increase in oil prices if India moves away from sourcing crude oil from Russia. She noted that the global supply pool is limited, which could lead to higher costs.
“India can get out of Russia and say all right I’m buying oil from somewhere else. The moment you come out the available pool which is limited is going to shoot up in price,” Sitharaman stated. She emphasized the importance of prioritizing India’s interests in energy sourcing amidst these challenges.
Her comments follow the recent signing of the Lindsey O Graham Sanctioning Russia and Iran Act by US President Donald Trump, which grants the president the authority to impose tariffs of up to 100% on countries that significantly purchase Russian oil and gas. This legislation affects India and China, among others.
Sitharaman reassured that India will continue to diversify its energy sources globally, focusing on what is available and suitable for the country’s energy security. “We will choose to source our energy requirement from every corner of the world, and that which suits us, suits not for anything else but for the availability,” she explained.
“I hope that we will end this ( Russia-Ukraine war ) and President Trump will help us to end this war. Sitharaman said the government therefore had to consider not just where crude was available, but also whether Indian refineries could process it.
We need to do this as soon as possible, before winter, better before winter,” he said during a media interaction on the sidelines of the UN General Assembly in New York.
