India Engages with US Officials Following New Russian Energy Sanctions, Assessing Potential Impact on Indian Companies

India is actively engaging with US officials to assess the potential impact of the latest US sanctions on Russia's energy sector on Indian companies. These sanctions, announced by the Biden administration on January 10th, target Russia's oil industry and oil-carrying vessels with the aim of curtailing Moscow's energy revenue that is funding its war in Ukraine.

"We are in touch with the US authorities to clarify issues pertaining to the impact on Indian entities," stated External Affairs Ministry spokesperson Randhir Jaiswal at a weekly media briefing. He further added that the ministry is working with relevant departments and agencies to inform Indian companies about the new measures and their potential impact.

This proactive approach underscores India's commitment to safeguarding its energy security while navigating the complexities of the evolving geopolitical landscape. India has consistently maintained that its oil purchases are guided by its own energy security requirements, along with prevailing global circumstances and market conditions.

India's procurement of discounted crude oil from Russia increased significantly after the imposition of Western sanctions on Russia following its invasion of Ukraine in February 2022. India has continued to buy Russian crude oil even after the G7 grouping imposed a price cap on Russian crude oil in December 2022, aiming to limit Moscow's ability to finance the war.

The price cap, set at USD 60 a barrel, prevents countries from paying more than this amount for Russian oil. Despite this, India has defended its oil trade with Russia, emphasizing that its policy is based on national interest and energy requirements.

This latest round of US sanctions has necessitated a careful assessment of its potential implications for Indian companies involved in the energy sector. India's engagement with US officials reflects its proactive approach to address these concerns and ensure the continued stability of its energy supplies.

 

[Devasahayam]

Timing almost great, exactly at a time when a POTUS in favour of expanding US-based energy production (and also exports) is about to come in -- see if one can persuade him (and his Energy Secretary) to give some rate concessions...