India will maintain multiple sources of energy and diversify them to ensure stability, with national interest guiding all purchases, foreign secretary Vikram Misri said on Monday amid controversy over India ending Russian crude purchases as part of a trade deal with the US.
Misri is the first official to offer clarity on the matter after US President Donald Trump issued an executive order on Friday that removed a 25% punitive tariff on Indian exports on the condition that New Delhi would not continue with Russian oil purchases.
The hot-button issue, used by the Opposition to criticise the government, had been lobbed between the external affairs and commerce ministries.
The external affairs ministry has long maintained that national interest and ensuring the country’s energy security are the main factors of energy sourcing, and Misri reiterated this position when asked about Russian oil purchases at a media briefing.
“Our approach is to maintain multiple sources of supply and diversify them as appropriate to ensure stability. Therefore, I would say that the more diversified we are in this area, the more secure we are,” Misri said.
Business choices will be made based on considerations such as adequate availability, fair pricing, reliability of supply, assessment of risks and costs, logistics, internal accountability-related processes of oil companies and their fiduciary responsibilities, Misri said.
“What I can firmly and confidently say is that, whether it is the government or indeed our businesses, at the end of the day, national interest will be the guiding factor for us in our choices,” he said.
“India is not just one of the largest consumers of energy, but it also plays an important role as a stabilising factor in global energy markets. And that’s one reason why we import energy from multiple sources,” he added.
The foreign secretary, who was addressing the media on a visit by the Seychelles President, agreed to address issues that “have swirled around for a few days”.
Earlier, external affairs minister S Jaishankar had said the commerce ministry was handling all matters related to the trade deal with the US, while commerce minister Piyush Goyal said the external affairs ministry would elaborate on Russian oil purchases.
Misri noted that India, which imports almost 85% of its energy, has concerns about the “possibility of inflation driven by energy costs”. The country’s foremost priority is safeguarding the interests of consumers and ensuring that they can access “adequate energy at the right price and through reliable and secure supplies”, and these objectives drive the energy import policy, he said.
Significant uncertainties in the global economy in recent years have impacted the stability of global energy markets, and India and other countries have a “shared and common interest in ensuring stable energy prices and secure supplies”, Misri said.
Noting that India imports crude oil from dozens of countries, he said: “We are neither dependent on any single source for this, nor do we intend to be. And it is natural for the mix of sources to vary from time to time, depending on objective market conditions.”
The remarks appeared to indicate that India has no plans at present to reduce Russian oil purchases to zero, even as it has increased purchases of oil and gas from the US.
India, the world’s second largest crude oil importer after China, substantially increased purchases of discounted Russian energy after the US and its Western allies slapped sanctions on Russia over the invasion of Ukraine in 2022. Russian oil jumped from less than 1% of India’s crude basket to 35-40% in recent years.
New Delhi weathered initial pressure from the West over these imports, with the government even contending that the former Biden administration in the US was okay with the move as part of efforts to stabilise global purchases.
But India faced renewed pressure from the Trump administration last year, especially as the President became frustrated over lack of progress in his efforts to end the war in Ukraine. After imposing the 25% punitive levy on Indian exports, Trump and his close aides accused India of funding Russia’s “war machine”.
Last December, India’s oil purchases from Russia fell to a 38-month low, while energy imports from the US grew almost 31% in the same month when compared to the figures for December 2024. Russian oil has accounted for less than 25% of India’s imports in recent weeks.
Trump’s recent executive order stated that “India has committed to stop directly or indirectly importing Russian Federation oil [and] represented that it will purchase United States energy products from the United States”. Under the trade deal, India is expected to purchase US goods, including energy and technology, worth $500 billion in five years.
The executive order further stated that the US secretary of state, along with other senior officials, will recommend additional action to be taken, including the reimposition of the 25% punitive levy, if India resumes importing Russian oil.
www.hindustantimes.com
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