India free to buy oil from any supplier: Kremlin spokesman

Moscow: India is free to buy oil from any country, and there is nothing new about its decision to diversify its crude suppliers, the Kremlin said on Wednesday.

“We, along with all other international energy experts, are well aware that Russia is not the only supplier of oil and petroleum products to India. India has always purchased these products from other countries. Therefore, we see nothing new here,” Kremlin spokesman Dmitry Peskov said while responding to a question.

He was asked about US President Donald Trump’s claim that Prime Minister Narendra Modi had agreed to stop buying Russian oil and switch to purchasing crude from the United States and, potentially, from Venezuela.

A day earlier, Peskov said that Russia has not received any statements from India regarding the cessation of Russian oil purchases.

Foreign ministry spokesperson Maria Zakharova on Wednesday said that the hydrocarbons trade is beneficial for both India and Russia.

“We remain convinced that India’s purchase of Russian hydrocarbons is beneficial to both countries and contributes to maintaining stability in the international energy market. We are ready to continue close cooperation in this area with our partners in India,” Zakharova said at a press briefing.

Private Kommersant FM business radio noted that, unlike President Trump, PM Modi did not mention any agreement on stopping Russian oil imports.

Igor Yushkov, a leading expert at the National Energy Security Fund, said that Indian refiners cannot fully stop the import of Russian crude.

“The American shale oil they export is light grades, similar to gas condensate. Russia, on the other hand, supplies relatively heavy, sulfur-rich Urals. This means India will need to blend US crude with other grades, which incurs additional costs, meaning a simple substitution won’t be possible,” he said.

“Russia typically exports 1.5 million to 2 million barrels per day to the country. America won’t be able to cover that volume. So, one gets the sense that Trump is simply trying to show that he won these trade negotiations and the deal was concluded entirely in line with US demands,” he said.