Will buy Russian oil despite U.S. waiver expiry provided it makes commercial sense: Official

Two days after U.S.’ second waiver on Russian oil purchases expired, the government emphasised that India’s oil-marketing companies (OMCs) would continue purchasing crude from Moscow should they be commercially viable.

Speaking to reporters at the bi-weekly briefing on the situation in West Asia, Sujata Sharma, Joint-Secretary at the Union Petroleum Ministry told reporters, “We have been purchasing [crude oil] from Russia earlier – before the waiver, during the waiver and now also – it is basically [that] commercial sense which should be there for OMCs to purchase.”

In the wake of the escalating tensions in West Asia, the U.S. had granted month-long waiver on purchasing crude oil from Russia and Iran.

While the Iranian waiver lapsed April, the waiver on Russia was extended by another month and expired May 16.

With the latest waiver in place, India’s import of Russian crude oil surged to 1.96 million barrels per day as on May 15 since the start of the month, compared to 1.57 million barrels per day in April, according to data from real-time maritime analytics provider Kpler.

The surge in oil imports from Moscow are indicative of Indian refiners rushing to secure stable supplies from the country, as supplies from West Asia are mired amidst uncertainties because of the conflict.

Norway ready to supply: Ambassador to India

Speaking to The Hindu at the sidelines of the Nordic Summit, Norwegian Ambassador May-Elin Stener stated that amidst the Russian situation, Oslo was ready to supply energy to India.

“Well, we will discuss these issues (expiry of U.S. waiver for Russian oil purchases) with India, and of course we also have an understanding of the needs of the fastest growing big economy in the world,” she stated, adding, “What exactly would be the result, that I cannot say now.”

According to Norwegian government data, the country whose energy customers primarily reside in Europe, imported 56.6 million barrels of crude oil in March which was 27.3% high than the comparable period last year.

Further, it imported 10.2 billion standard cubic metres of natural gas during the same period although 0.3% lower than the comparable period last year.