India's Legitimate Energy Transactions Shouldn't Be Politicised, Oil Import From Russia Minuscule: Govt

The world's third-greatest oil-consuming and importing nation has as of late snapped not many cargoes accessible from Russia at profound limits as a component of its arrangements to enhance its import crate.

Storage tanks of an Indian Oil Refinery (Source: File photo/AFP)

New Delhi: India's legitimate energy transactions should not be politicised as energy sent out from Russia is yet to be sanctioned, said the government on Wednesday. India also stated that its energy purchases from Russia stay 'minuscule' in contrast with its all-out utilisation. The world's third-greatest oil-consuming and importing nation has as of late snapped not many cargoes accessible from Russia at profound limits as a component of its arrangements to enhance its import crate. These buys have been remarked upon.

"India's legitimate energy transactions cannot be politicized," the oil ministry said in a statement reacting to such reports. "Energy flows are yet to be sanctioned."

It proceeded to express that the reports "make conjectures and try to sensationalize routine purchase of crude oil by Indian oil companies from Russia based" and this is a part of "a pre-meditated attempt to further destabilize an already fragile global oil market."

"India's energy needs are enormous with daily consumption of around 5 million barrels and a refining capacity of 250 million tonnes per annum," it said. "For energy security and to fulfil its objective of providing energy justice to each of its citizens, Indian energy companies buy from all major oil producers in the world."

It, in any case, didn't measure the purchases made from Russia.

"Our top 10 import destinations are mostly from West Asia. In the recent past, USA has become a major crude oil source for India, supplying almost USD 13 billion worth of energy imports, with almost 7.3 per cent of market share of crude oil imports," the statement said.

India, it said, has been obliged to address steadily inflating costs charged by certain oil suppliers, which is driving India to enhance its wellsprings of obtainment.

"Meanwhile, energy demand in India remains inelastic. At the current price levels, many countries in the immediate neighbourhood are facing severe fuel shortages and chaos due to high fuel inflation," it said adding the Government has ensured access to affordable energy to Indian citizens despite challenging times.
 
The ministry said Indian energy organizations have been obtaining energy supplies from Russia, on a supported premise, throughout the course of recent years. "Yearly figures may have varied due to a variety of reasons, including operational necessities."

"If suddenly, now, as a huge importer of crude oil, India pulls back on its diversified sources, concentrating on the remaining, in an already constrained market, it will lead to further volatility and instability, jacking up international prices," the statement said justifying purchases from Russia.

"Despite attempts to portray it otherwise, energy purchases from Russia remain minuscule in comparison to India's total consumption," it said calling for attention to be on other countries that are major consumers of energy supplied from Russia.

Speculation on Indian purchases from Russia will "end up serving vested interests including speculators, leading to a negative impact on the global economic recovery," it added.

(With PTI inputs)