India’s oil purchases are driven by its own economic priorities, not external pressure, Nirmala Sitharaman has said
India will “undoubtedly be buying Russian oil,” Finance Minister Nirmala Sitharaman told news outlet Network18 on Friday.
In the interview, she reiterated the government’s stated policy that the South Asian nation’s oil purchases are driven by its own economic priorities and not external pressure.
”Whether it’s Russian oil or anything else, it is our decision to buy from the place that suits our needs, whether in terms of rates or logistics,” Sitharaman said. “Where we buy our oil from, especially a big-ticket foreign exchange item where we pay so much, highest in terms of import, we will have to take a call on what suits us best. We will undoubtedly be buying,”
Since the escalation of the Ukraine conflict in February 2022, Russia has become India’s leading oil supplier, providing nearly 40% of its crude imports.
India Picks Global South Oil Over US Crude
One of India’s biggest refiners, the Indian Oil Corporation, has skipped buying oil from the US in its latest purchase, and instead has bought 2mn barrels from West Africa (Nigerian Agbami and Usan grades) and one million barrels from… pic.twitter.com/kv9cYkqKmr
Indian private refiners buy oil from Russia at discounted rates, refine it, and then resell it, making the South Asian nation a major exporter of refined fuels to Europe.
The US has imposed duties on most Indian products, which include a 25% tariff announced in early August followed by an additional 25% at the end of last month, as a “penalty” for India’s purchases of Russian oil and defense equipment – actions that President Donald Trump claims have indirectly fueled the Ukraine conflict .
On Friday, a few hours after Sitharaman’s comments, US Commerce Secretary Howard Lutnick predicted that India will ultimately yield to US pressure regarding tariffs, adding that New Delhi cannot afford to defy Washington for long.
Highlighting America’s economic power, Lutnick stated that with its $30 trillion economy it is the consumer of the world. “Eventually, the customer is always right,” he said.
Lutnick said New Delhi would have to decide whether to align with Washington or strengthen its relationships with Russia and China through BRICS.
On Saturday, Trump wrote on Truth Social that the US seems to have “lost” India and Russia to “deepest, darkest China.”
