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Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Friday clarified that there are no sanctions on Russian oil purchases, only price caps. He noted that India has always respected sanctions in cases like Iran and Venezuela, acting as a responsible member of the global community.
Calling Russia the world’s second-largest crude supplier at nearly 10 million barrels a day, Puri warned of serious consequences if such a key player were removed from global markets. “Energy is something you cannot do without… If you remove the second-largest producer, you will have to cut consumption. The consequences are pretty serious,” he told reporters amid the ongoing US–India trade policy talks.
Puri added that price caps exist on Russian oil, and he encourages Indian companies to buy at lower prices whenever possible. He pointed out that several countries, including Turkey, the EU, and Japan, continue to purchase Russian oil. However, he noted that current discounts from Russia are not very steep.
The minister stressed the need for a “broad equilibrium” between supply and demand, predicting crude would likely trade in the $65–68 per barrel range going forward. He also suggested it is in the US’s interest—as the world’s largest producer with heavy reliance on costlier shale gas—to prevent prices from falling too much, given domestic political sensitivities around inflation.
Puri further emphasized that state-run oil marketing companies independently decide their crude sources, guided by professional management and boards.
