India To Buy Russian Crude Past The Price Cap Imposed By The G-7: Finance Minister

With the ongoing Ukraine-Russia war, the import of Russian oil by India would be one of the priorities. New Delhi has been buying oil from Moscow at a discounted price since global oil companies imposed sanctions against the Kremlin.

During the trade talks Finance Minister Nirmala Sitharaman has indicated that the nation will explore buying Russian crude oil near or past the price cap imposed by the G-7 if necessary, as per media sources.

"Yes, because otherwise I'll end up paying far more than what I can afford. We have a large population and we also therefore have to look at prices which are going to be affordable for us," Finance Minister Nirmala Sitharaman told Bloomberg in an interview on Saturday.

She even mentioned that India has not signed any agreement with the Western powers to impose a price cap on Russian oil, which officials had previously indicated. That, the country was likely to breach sanctions on Russian oil prices, while the recent surprise OPEC+ oil-output cut however has led to a change of heart.

The South Asian nation needs to constantly look for the "best deal" since it imports almost 80% of its crude oil requirements, Sitharaman said. "For us, it is a very critical input for the economy."

The Finance Minister said that India needed to constantly look for the 'best deal' since it imports almost 80% of its crude oil requirements. She cited the risk of higher oil prices and the impacts from Russia's war in Ukraine as the biggest threats to India's economic growth.

Meanwhile, Russia's oil exports jumped to their highest level in almost three years in March this year in spite of Western sanctions. Moscow's crude exports rose by 100,000 bpd to five million bpd, with India replacing China as the main destination for Russian shipment in Asia. However revenues were down sharply from last year.

The stance underscores the pressing need in the country of 1.4 billion people to curb inflation and spur growth amid a surprise output cut by OPEC+ and western sanctions to rein in Russia's oil revenue following the invasion of Ukraine. India, along with China, has emerged as one of the key buyers of Russian crude. It is now India's top supplier, above Iraq and Saudi Arabia.