“Will undoubtedly buy”: FM Sitharaman says Russian oil suits India’s needs

NEW DELHI : Union Finance Minister Smt. Nirmala Sitharaman on Friday said that India will continue purchasing Russian oil, stressing that decisions will be guided solely by national interest.

“Whether it is Russian oil or anything else, we will take a call based on what suits our needs in terms of rates, logistics, or whatever. Where we buy our oil from, especially since it is a big-ticket foreign exchange-related item, is a call we will take based on what suits us best. So, we will undoubtedly be buying Russian oil,” she said in an interview with News18.

The Union Minister reiterated that the contribution of crude oil to India’s import bill is the highest. Given the optics of the summit, the thinking in Delhi is that participation, at this stage, should only be at the level of the External Affairs Minister. In the West, the BRICS and SCO are viewed as anti-Western groupings. Delhi prefers to call them “non-Western groupings”.

The minister’s statement has come at a time when the President of the United States, Donald Trump, has accused India of buying Russian oil and funding the Ukraine war, and has imposed a 50 per cent import tariff, effective from August 27.

President Donald Trump on Wednesday warned that the United States has not yet rolled out “Phase-2” and “Phase-3” tariffs against countries continuing trade ties with Russia. He called secondary sanctions on India a direct action against Russia, as “that costs hundreds of billions of dollars to Russia.”

He said this when being asked about why he has taken no action against Russia after he assumed the Oval Office in January this year.

He also called India the largest buyer of Russian oil after China, indicating that New Delhi could face further penalties if it continues energy imports from Moscow.

Ms Sitharaman also noted that “with a reform like GST, many of the tariff concerns would be offset.”

Assuring support for industries facing a 50 percent tariff, Ms Sitharaman said, “We will come out with something to handhold those who have been hit. The package includes a variety of measures, and something is definitely coming to help them.”