India’s Minister of Petroleum says ‘we play with the rules’, as markets weigh American energy sanctions

India will cooperate with international sanctions, said the country’s minister of oil to CNBC on Tuesday on Tuesday, since the markets look at the future American policy under the new administration of President Donald Trump.

“We play according to the rules. If there is an international sanction, which is anchored, we would not want to turn it around or anything,” said Indian Petroleum Minister and Natural Gas Hardeep Singh Puri, Sri Jegarnaaja of CNB annual. India Energy Week Conference.

“In Russia, yes, there was a price limit, and we strictly adhere to the price limit. In the future, if there are problems, we will address.”

India refiners have State taking Russian oil with discount Since Western energy and G7 sanctions prohibited many consumers from supplying Moscow, in an effort to reduce Russian war coffers after their invasion of Ukraine. Countries that are not subject to measures have been able to use insurance and shipping suppliers to facilitate the acquisition and transport of Russian crude acquired under a price threshold.

New Delhi has repeatedly defended his purchases as a matter of national interest.

“There is no sanctioned country, first of all. It is a large amount of misrepresent “, The Minister of Energy said Tuesday.

He also pointed out that the predecessor of the Trump government, President Joe Biden, had supported the reinforced intake of Russian oil from India.

“I have talked with the Americans, the previous administration. They said, please, buy everything you want. Just be sure to buy it within the price limit. And that is what we did,” Puri said. CNBC has communicated with the United States Department of State to comment.

India He fulfilled about 88% of his oil needs Through imports between April and November 2024, little changed compared to the previous year, according to official data. As of January, about 40% of these imports come from Russia, it suggests data from the Kpler commercial intelligence firm.

In 2021, Russian oil represented only 12% of the country’s oil imports by volume. By 2024, that participation had increased to more than 37%, according to Kpler data.

The United States has been key to shape global energy policy through sanctions during the last decade. In January, the United States imposed sweeping Measures aimed at Russia’s energy companies And vessel operators that transport oil, a measure that analysts believe that it will make it difficult for buyers as India to continue to import russian crude cheap.

Investors have been waiting to see if the newly installed Trump will follow a reduction or relaxation of US energy restrictions, criticisms for markets because the US dollar calls raw and oil products.

Trump imposed sanctions that affect the sectors of Iranian and Venezuelan energy during his first mandate and has adopted an “America first” approach that could further encourage domestic production, amid questions about the impact that US tariffs could have in The global supply in other places.

Puri pointed out that his country would not be adverse to additional acquisitions of US volumes. “If the Americans are putting more energy in the global market, someone asked me: ‘Are you going to buy more? I said:’ I would be surprised if we do not. ‘Because it is in the natural flow,” he added.

Sanctions and commercial developments coincide with a period in which Petroleum consumption growth in India It has surpassed that of China, contributing to 25% of the global increase in oil consumption.

“I am convinced that geopolitical tensions should be administered,” Puri said on Tuesday, pointing out that the current characterizations of the fundamentals of demand for supply in the oil market “depend on who is talking to and depending on where they are in the equation ” as producers or consumers.

“A country like India, with a robust demand and a current consumption of 5.5 million barrels (per day) has a contribution to make in terms of how the market is going. And we … we plan to use that leverage,” the minister of added oil.