Thursday, December 8, 2022

Some Facts on India-Russia Oil Trade you should know

While Western countries seek methods to minimize their reliance on Russian oil and gas, another facet of the Ukraine issue has gotten less attention: the majority of the 32 countries that utilize nuclear power rely on Russia for some portion of their nuclear fuel supply chain.

Many national electrical systems depend heavily on nuclear power. Nuclear power is particularly important in Europe, with France producing 69% of the country’s electricity, Ukraine (51%), and Hungary (51%).

Nuclear reactors provide 20% of the nation’s electricity in the United States. Many of these nations turned to nuclear power to lessen their reliance on imported fossil fuels and, more recently, to cut carbon emissions and improve air quality.

The economic consequences of the Ukraine conflict might make it difficult for nuclear power plants to get fuel. Countering Russia’s influence, we believe, would need comprehensive measures that strike a balance between energy security, climate mitigation, and adherence to international law.

The government’s choice to seek cheaper energy from sources like Russia, the persons added on condition of anonymity, is inevitably raising the pressure for competitive sourcing. After the US and its allies slapped sanctions on Moscow in response to President Vladimir Putin’s decision to attack Ukraine last month, Russia has offered India cheap crude oil and other goods.

India’s crude oil imports from Russia were roughly four times greater in March this year than in the same month last year, according to commodities monitoring and analytics firm Kpler. In the first half of this month, India imported roughly 360,000 barrels of crude oil per day from Russia on average. The average oil commerce between the two nations is anticipated to be over 203,000 barrels per day, according to current shipment schedules, according to news agency ANI.

This comes at a time when European corporations are avoiding purchasing Russian oil due to issues related to the broad sanctions. Oil exports from Russia to the world’s third biggest consumer, India, increased by a factor of two in March, according to the Financial Times.

Developments in geopolitics have created substantial threats to our energy security. We have had to cease sourcing oil from Iran and Venezuela for obvious reasons,” one of the persons quoted above stated, referring to India’s decision to stop importing oil from Iran and Venezuela, two of the cheapest energy sources for New Delhi, due to US sanctions. India has to keep its sights set on low-cost energy sources.

According to an article in the Hindustan Times, India is heavily reliant on imports for its energy needs, with about 85 percent of the country’s crude oil consumption – or five million barrels per day – coming from abroad. The vast majority of these imports come from West Asia, with Iraq accounting for 23%, Saudi Arabia 18%, and the United Arab Emirates 11%.

Furthermore, the sources pointed out that Russia has only been a “marginal supplier” of crude oil to India so far, accounting for less than 1% of the country’s needs and not ranking among the top ten sources. The citizens also pointed out that there is no government-to-government agreement regarding energy imports.

For more news updates visit Indian Business Times. It is the best business news source for daily newsreaders.

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