During the Ukraine conflict, India has become a target for Western countries due to its import of oil from Russia. These countries, from the European Union to the United States, are attempting to surround India. Recently, India’s Foreign Minister, Jayshankar, criticized the European Union over the issue of exporting Russian oil. Now, the American newspaper New York Times has revealed, based on shipping data, that India has been benefiting from a policy of non-alignment similar to that of Pandit Nehru during the Ukraine conflict. The advantage of this policy is that India has earned substantial profits from Russian oil. India has maintained strategic economic relationships with both the Western countries supporting the Ukraine conflict and Russia, which are benefiting India.
In fact, several countries, including the United States and Europe, have imposed strict sanctions against Russia. The objective of these countries was to put pressure on Russia through sanctions. Not only that, Western countries have also imposed a cap on the price of Russian oil. According to the New York Times report, this cheap oil has now found a new market in India, which is purchasing 2 million barrels of oil per day from Russia. According to the International Energy Agency’s report, this accounts for 45% of India’s total oil imports. It has not only strengthened India’s economy but also provided India with a highly lucrative business of refining Russian oil.
India’s alignment with both Western countries supporting the Ukraine conflict and Russia has saved it from the Russian oil crisis. The Prime Minister, Narendra Modi, has adopted a neutral stance in the Russia-Ukraine conflict. The American President, Joe Biden, has raised the issue of Russia in his meeting with President Putin. The United States’ attempt is to reduce India’s relations with Russia, which includes defense and energy. However, India has not given it much attention. In just one year, India has increased its purchases of Russian oil, which was previously minimal, by receiving oil sent by sea routes.
Russia is the world’s third-largest oil-producing country. Some of Russia’s oil is sent through pipelines, and its destination cannot be easily changed. However, oil transported by tankers can be easily sent from one place to another. China and India are doing this and have purchased 80% of the oil sent by sea routes in May. Amidst falling oil prices, India has benefited from this situation. India now easily receives Russian oil at a cheap rate, which it used to purchase more from Gulf countries. The report states that India is getting Russian oil at $51 per barrel.
Indian companies are exporting oil to Europe
According to the report, this has resulted in savings of billions of dollars. India buys cheap oil from Russia, refines it, and then exports it to the European market at market rates. This is also benefiting Indian companies. As per European regulations, it is illegal to import oil from another country and export it. Despite their desire, European countries are unable to do much. This has also increased India’s foreign exchange reserves.
India has benefited economically by importing cheap Russian oil and exporting processed oil to European countries. By purchasing oil from Russia at a lower price, India has been able to refine it and sell it at market rates to European nations. This has resulted in significant cost savings for India and has also boosted its foreign currency reserves.
About The Author
