Energy security for 1.4 bn will guide crude sourcing: MEA

New Delhi: India on Thursday signalled that the overriding consideration in its energy policy will remain the security of supplies for its 1.4 billion citizens, even as it kept its options open on sourcing crude oil from Venezuela and resisted suggestions that it would abruptly curtail purchases from Russia.

The statement from the Ministry of External Affairs came in the wake of claims by US President Donald Trump that New Delhi had agreed to stop buying Russian oil and instead increase imports from the United States and potentially from Venezuela. Indian officials, however, made it clear that decisions on crude procurement will continue to be guided by market conditions, price competitiveness, and long-term national interests rather than external pressure.

At his weekly media briefing, MEA spokesperson Randhir Jaiswal said the government’s approach to energy sourcing has consistently been anchored in the need to ensure reliable and affordable supplies for the country’s vast population. He noted that India’s strategy has involved broadening its supplier base in line with shifting global dynamics.

“Insofar as India’s energy sourcing is concerned, the government has stated publicly on several occasions that ensuring the energy security of 1.4 billion Indians is the supreme priority of the government,” Jaiswal said. He added that diversifying suppliers based on objective market realities remains central to this approach, without providing specifics on future purchase plans.

Pressed on whether India would cease imports from Russia as suggested by Trump after his recent phone call with Prime Minister Narendra Modi, Jaiswal declined to confirm any such commitment. Diplomatic sources later indicated that New Delhi is unlikely to completely halt Russian crude purchases, particularly as expectations grow that the Russia-Ukraine conflict may move toward a resolution, which could ease political sensitivities around energy trade with Moscow.

India’s heavy reliance on discounted Russian oil since February 2022 has been a recurring point of friction in its relationship with Washington. US officials have argued that such purchases indirectly support Russia’s war effort in Ukraine, a charge New Delhi has rejected, insisting that its procurement decisions are driven by economic and energy security considerations.

Tensions between India and the US had escalated after Trump imposed 50 per cent tariffs on a range of Indian goods, including additional levies linked to New Delhi’s Russian oil imports. However, following the recent Modi-Trump conversation, both sides announced that US tariffs on Indian products would be lowered to 18 per cent.

Referring to this development, Jaiswal said Modi had welcomed the reduction, noting that it would benefit Indian exporters. “The prime minister noted that Made in India products will now be exported to the US at a reduced tariff of 18 per cent,” he said, adding that the agreement would support labour-intensive industries, employment generation, and economic growth.

On the question of Venezuela, the MEA spokesperson acknowledged that the South American nation has historically been a significant energy partner for India. He said Venezuela was among India’s major crude suppliers until financial year 2019-20, when imports stopped due to US sanctions. Supplies briefly resumed in FY 2023-24 before being suspended again after sanctions were reimposed.

Jaiswal pointed out that Indian public sector oil companies have maintained ties with Venezuela’s national oil firm, PdVSA, and have had a presence in the country since 2008. He said New Delhi remains open to evaluating the commercial viability of future purchases from Caracas if conditions permit.

As India navigates a complex geopolitical energy landscape, its stance underscores a pragmatic balancing act, seeking to expand its options while safeguarding domestic energy needs and maintaining strategic autonomy in its foreign and trade policy choices.