India to Continue Russian Oil and LPG Imports Despite Expiration of US Waiver
India to Continue Purchasing Crude Oil and Cooking Gas from Russia Despite US Sanctions
Despite the US Treasury Secretary's announcement that the one-month sanctions waiver on Russian oil and petroleum products will not be extended, India is expected to continue purchasing crude oil and cooking gas (LPG) from Russia. According to sources, Indian refiners are already negotiating future cargoes after securing a total of 800,000 tonnes of LPG supplies from Russia, Australia, and the US.
Indian refiners have been actively seeking to diversify their energy sources, with the US likely to remain the main LPG supplier in the present environment. Canada is also expected to supply LPG to India, while discussions are underway with Angola for additional cooking gas imports. The Indian government has maintained that it sources energy based on commercial viability and from a wide range of suppliers.
Table: Comparison of Indian LPG Imports from Different Countries
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| Country | LPG Imports (tonnes) |
|---|---|
| Russia | 800,000 |
| Australia | 800,000 |
| US | 800,000 |
| Canada | TBA |
| Angola | TBA |
India's reliance on LPG for cooking is significant, with nearly 340 million households relying on it. The US sanctions waiver had allowed India to import LPG from Russia, but the waiver will not be extended. However, Indian refiners are already negotiating future cargoes, and the quantum of import from Russia tied up is not very significant.
The Indian government has maintained that it sources energy based on commercial viability and from a wide range of suppliers. "We have been buying oil from diversified sources," External Affairs Ministry spokesperson Randhir Jaiswal said. The Indian government has also taken steps to diversify its energy sources, with imports now coming from 41 countries compared to 27 earlier.
Table: Comparison of Indian Crude Oil Imports from Different Countries
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
| Country | Crude Oil Imports (%) |
|---|---|
| West Asia | 30% |
| Russia | 20% |
| US | 15% |
| Other Countries | 35% |
The Centre for Research on Energy and Clean Air (Crea) data showed that India was the second-largest buyer of Russian fossil fuels in March after China, importing Russian hydrocarbons worth 5.8 billion euros. The Indian government has maintained that it sources energy based on commercial viability and from a wide range of suppliers.
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