India can tap other sources if Russian oil is sanctioned: Hardeep Singh Puri

NEW DELHI: India can arrange alternative supplies if Russian oil exports are sanctioned, petroleum minister Hardeep Singh Puri said on Thursday in what is seen as the first official reaction to the US and EU threat of secondary sanctions for buying those barrels.

“I don’t feel any pressure in my mind (about sanctions on Russian oil). And Idon’t think my boss’ (PM’s) mind is wired to feel any pressure. That’s where I draw my strength (from). India has diversified the sources (of oil)… I am not worried at all… If something happens, we will deal with it. There is sufficient supply available,” Puri said at an industry event.

The minister said India has built up “navigational resilience” by expanding the sourcing of oil from 40 countries against 27 countries earlier. “India has been clear that it will buy oil from wherever it has to. The prime minister’s commitment, in the final analysis, is to the Indian consumer… If something happens, ,” he said.

In addition, Puri said, more oil is coming into the global market from countries such as Brazil, Guyana or Canada that are not members of the OPEC+ grouping. “If a major source goes off the market, you diversify… We have the The current debate in the oil market is whether prices will be in the range of $65-70 or $60-65 (per barrel),” he said to indicate a well-supplied market.

On purchase of Russian oil by Indian refiners, Puri argued that those barrels are currently subjected to a price cap of $60 and “not sanctioned”. “We are happy to buy below the price cap. Our companies float tenders as per their requirement and whoever supplies the cheapest, they buy it (from them),” he said.