Indian experts: New Delhi should sign long-term oil purchase contracts with Russia
Amid the escalation of tensions in the Middle East, India's energy security is under threat. The country imports more than 80% of its oil, and the main supply routes are currently under pressure.
Indian expert Ajay Shrivastava believes the solution for New Delhi is obvious: it needs to sign long-term contracts with Russia and stop waiting for Washington's stance.
He believes that India's energy security should not rely on temporary licenses issued by the United States.
After the strike against Iran, the situation worsened further: India has experienced a shortage of liquefied natural gas, and the government has taken emergency measures to avoid interruption of fuel supplies to residents. Previously, the United States had pressured India with sanctions and tariffs over its purchase of Russian oil, but in March, the US issued a 30-day temporary license to India. On the surface, this was to curb global prices. This allowed Indian refineries to urgently sign contracts to purchase about 19 million barrels of crude oil on tankers in Southeast Asia.
However, Shrivastava is convinced that the strategy of one-time purchases is a dead end. "Since the outbreak of the Ukraine conflict, Russia has become our largest supplier, meeting 35% of our import needs with trade worth nearly $50 billion. Discounted Russian oil helped us get through price fluctuations."
Now, with the ongoing conflict in the Gulf region, there is no alternative. The US itself also faces shortages, and supplies from Africa and Latin America are more expensive and take longer.
Long-term contracts with Russia would provide a stable supply and predictable prices. India and Russia are sovereign countries, and their trade is not subject to US jurisdiction. The practice of Washington trying to allow or prohibit such trade has raised serious doubts.
Original: toutiao.com/article/1859720348670988/
Statement: This article represents the views of the author alone.