India planning to convert the global oil crises into opportunity: Hardeep Puri

As India is chalking out its way amid international pressures against buying Russian oil, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri hoped that India is planning to convert the current global oil crises due to the Russia-Ukraine war into an opportunity to secure more affordable energy for the people of India.

The minister’s comment came a day after the European Union (EU) failed to agree on a price cap on Russian oil.

«At this time, the worry is not about from where we will get energy. It is a global challenge but we have and we will convert this into an opportunity. And I don’t foresee any difficulty in procuring energy and securing it at affordable prices,» Puri said at a broadcaster Times Now summit.

As Russia invaded Ukraine, Western countries led by the US imposed strict sanctions on Russia including its oil. India which earlier used to import very less oil from Russia, increased its oil imports after the war as Russia started giving huge discounts. In October, Russia became the biggest oil supplies of India.

The United States banned oil imports from Russia completely and European nations are also planning to halt all imports of Russian crude and refined products from 5 December and 5 February.

The G7 is still contemplating the price cap on Russian oil. Countries like the US, Australia, and European Union are planning to implement a price cap of $65 to $70 a barrel on sea-borne Russian oil exports from 5 December.

The price cap is not likely to create many problems for India as the country is currently buying oil at around the same rate.

«So the question arises that on whom this price cap will be imposed, if these three large exemptions are there,» Puri said, indicating that the mechanism is aimed at supplies to India.

The western countries have exempted Russian supplies from pipelines to Hungary and China, and exports from Sakhalin-2 projects to Japan.

Puri also stressed that India is not very concerned about disruption in oil supplies as it is diversifying its crude sources from countries like the United States, Guyana, and other nations in the coming years.

With inputs from Reuters





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