High levels of Russian crude imports may not last forever, says govt

The increased levels of Russian crude imports into India may not last forever, and public-sector oil refineries are, therefore, continuing with term contracts with other suppliers and regions for firm and optional volumes to secure the country's refinery requirement in case of any volatile market situation, the government has said.

“Prior to the Russia-Ukraine conflict, Russian crude oil was largely exported to Europe and China. The conflict and the resulting sanctions on Russian crude oil have resulted in increased flows of Russian crude into India due to attractive discounts,” the oil ministry told the parliamentary standing committee on petroleum and natural gas.

The ministry was commenting on a recommendation by the panel on imports of crude oil from Russia according to the report of the panel tabled in Parliament today. The committee appreciated the government's decision to purchase crude oil from Russia and recommended that it should keep the energy security of the country in mind while taking decisions on the import of crude oil.

India imports crude oil from various locations, including West Asia, Africa, North America, and South America. In 2021-22, the top six countries accounted for 80 per cent of the total crude imports, and the shipments from Russia were low. After the Ukraine-Russia conflict began, and economic sanctions were announced by the United Nations, the United Kingdom, the European Union, and the US, with the price cap imposed on Russia, India increased its Russian crude imports.

The committee had earlier recommended an overall review of the policy on crude oil imports, including enlarging the Indian crude basket, diversifying the sources and types of crude oil, and implementing reforms in the pricing of crude oil to ensure energy availability at a reasonable price.