'No Moral Conflict': Hardeep Puri On India's Oil Purchase From Russia
Puri stated that India only bought 0.2 percent, not 2 percent of Russian oil and it buys a quarter of what Europe buys in one afternoon.
Union Petroleum and Natural Gas minister Hardeep Singh Puri told CNN that India is under no moral conflict to stop buying oil from Russia. In an interview with CNN, Puri responded to a question by Becky Anderson who questioned Puri on whether India had "qualms" over purchasing so much from Russia, the minister said that there is no moral conflict and its the oil companies who are doing the buying. "Absolutely none, there is no moral conflict, if somebody wants to take an ideological position...We don't buy from X or Y, we buy whatever is available. I don't do the buying, it's the oil companies who do the buying,” CNN quoted Puri as saying.
Puri stated that India only bought 0.2 percent, not 2 percent of Russian oil and it buys a quarter of what Europe buys in one afternoon. On being questioned about India being benefitted from discounted rates of Russia, Puri said, "Let me first try and correct your perspective, we ended the financial year 2022, the purchases of Russian oil were not 2 percent, it was 0.2 percent. Moreover, we still buy a quarter of what Europe buys in one afternoon. So, let's be very clear about what the perspective is," Puri told CNN.
Responding to a question about India's backup plan if the West decides to tighten the oil ban from Russia, Puri said that India has backup plans and we don’t feel any pressure. He further said that India is the fifth largest economy in the world and is making the transition.
"We have many backup plans, I don't look at the way you are looking at it. We have healthy discussions going on with the US and Europe. We don't feel any pressure, Modi's government doesn't feel the pressure. We are the fifth largest economy in the world, we are the one country, which is making the transition. When you have an increase in the oil prices, they have consequences - one of it is - there will be inflation and recession, another is we will make the transition in green energy," CNN quoted Puri as saying.
The union minister also cleared the air about Russia being the largest supplier of oil to India and said that Russia is only contributing 0.2 per cent of the total supplies.
"Russia is not the largest supplier of oil to India, Russia supplied only 0.2 percent. Now, it is one of the top four or five suppliers; in fact, the largest supplier last month was Iraq. So, there is no misunderstanding anywhere," said Puri. He further stated that India owes a moral duty towards its people.
"We owe our moral duty to consumers, we have a 1.3 billion population and we have to ensure that they are supplied with energy, whether petrol or diesel. We were the only country in the world, which at the time when we were feeding 800 million people free meals a day which we make sure that the prices of petrol ban didn't go up," Puri further explained.
Puri had last month in Washington after his bilateral meeting with US energy secretary Jennifer Granholm stated that the Indian government has a moral duty to provide energy to its citizens and it will continue to buy oil from wherever it has to.
"India will buy oil from wherever it has to for the simple reason that this kind of a discussion cannot be taken to the consuming population of India," the minister said reiterating New Delhi's stand on buying oil from Russia amid the ongoing Ukraine war.
Meanwhile, during the CNN interview aired on October 31, asked about whether India was becoming a backdoor into Europe for Russian oil, which is imported into India where it is refined before being exported to Europe, the union minister said, "That was done by some private sector companies, not by OMCs. Who buys Russian oil, and where it is refined, we have nothing to do with that. The government doesn't do the buying. The oil trade is conducted by economic entities."
"Today, I met a minister from Guyana, they have got a production company, we are buying from Canada. We bought from the US, USD 20 billion worth which is half of what we buy from OPEC. We will buy oil, and gas from wherever we can get it," Puri said. The union petroleum minister also highlighted the increase in oil prices after the West and US banned purchases of Russian oil.
"First, you should address this question to the EU, and US because if India did not buy or someone else didn't buy Russian oil and it goes off the market, what would happen to international prices? ...prices will go up to USD 200," said Puri. Puri emphasized that if the European Union wants to come up with something, they will talk to India.
"If the EU wants to come up with something, they will talk to us, we will examine- what is on offer now. We have a situation where Hungarian oil could come through the pipeline and it's exempt from the so-called price cap. Russian oil goes to China through the pipeline, it is exempt, and Japan can buy. I want to find to whom the price cap is aimed," added Puri in an interview with CNN's Becky Anderson.
On India's cooperation with the G7 stance, i.e. tapping the price of Russian sea-borne oil exports, Puri said that the proposal is yet to be formalized.
"I am surprised you are fixated on the proposal, which has not been fully spelled out. India will examine it, and respond according to its national interest. We will take a view and will discuss it with everyone," said Puri.
Earlier in August, External Affairs Minister S Jaishankar defended India’s crude oil imports from Russia by terming it the “best deal” for the country. “It’s my moral duty to ensure the best deal,” Jaishankar said.
During his assessment of global oil prices, Jaishankar said that oil and gas prices are unreasonably high throughout the world. According to him, Europe was buying more oil from the Middle East countries which were Asia’s traditional suppliers, however, now it was diverted to Europe.
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