ONGC, India’s premier oil and natural gas company, has voiced its stance on the importance of India’s oil imports from Russia, asserting that they contribute positively to the global economy.
Speaking during the annual Asia Pacific Oil and Energy Industry Conference (APPEC), organized by S&P Global Insights in Singapore, Mr. K.C. Ramesh, Executive Director of ONGC, emphasized the mutually beneficial nature of India’s oil imports from Russia. He remarked, “By importing oil from Russia, India has played a role in supporting the global economy by diverting some of our oil imports away from the Gulf region to other nations, particularly in Europe. This arrangement represents a win-win situation for all parties involved.”
Recent reports have highlighted the significant shift in India’s crude oil procurement strategies since the Russian invasion of Ukraine in February 2022. In the aftermath of the invasion, Indian refineries turned to cost-effective Russian crude as a primary source, making Russia the top supplier of crude oil to India. Currently, Russian crude accounts for approximately 40% of India’s total crude oil imports.
It is important to note that, in response to the Ukraine conflict, major global economies, including the European Union (EU) and the Group of Seven (G7), have imposed sanctions and restrictions on Russian oil exports. This move has resulted in shifts in global crude oil trade dynamics.
Mr. Ramesh underscored that India has benefited significantly from the availability of lower-priced crude oil through its imports from Russia. He explained that this development has had a substantial impact on the Indian economy, contributing to its growth due to the acquisition of reasonably priced crude oil from Russia.
As India continues to navigate its energy requirements and global geopolitical dynamics, the role of its strategic oil imports from Russia takes on added significance. The comments from ONGC’s Executive Director reflect the complex interplay between energy markets, international relations, and economic considerations in today’s global landscape.