India Open to Buying Russian Oil Beyond G-7 Price Cap Due to OPEC+ Cuts

The conflict between Ukraine and Russia has prompted discussions regarding India’s persistent purchase of Russian oil. With a focus on its own interests, New Delhi has been obtaining oil from Moscow at a significant markdown since the international community implemented sanctions against the Kremlin. In light of these circumstances, Finance Minister Nirmala Sitharaman has suggested that India may consider procuring Russian crude oil at or above the price limit established by the G-7, if required.

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During a media interview on Saturday, Finance Minister Nirmala Sitharaman explained that it was necessary to consider affordable prices for the large population of India, otherwise, the cost would exceed far more than what the nation can afford.

Although India has not entered into any agreements with Western powers to limit the price of Russian oil, officials had previously suggested that the country was unlikely to violate the sanctions against Russia. However, a recent unanticipated reduction in oil production by OPEC+ seems to have caused a shift in this stance.

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The Finance Minister stated that India, which imports almost 80% of its crude oil needs, must continually seek out the optimal deal. She identified the danger of increased oil prices and the effects of Russia’s conflict in Ukraine as the most significant risks to India’s economic development.

In March of this year, despite Western sanctions, Russia’s crude oil exports surged to their highest level in nearly three years. Moscow’s crude exports increased by 100,000 barrels per day to reach five million barrels per day, and India supplanted China as the primary destination for Russian shipments in Asia. However, revenues were substantially lower than the previous year.