U.S. sanctions on Russia should not affect Moscow’s oil trade with India, Russia’s first deputy energy minister Pavel Sorokin said on Tuesday adding that it was too early to assess the impact of the latest restrictions.
India remains the largest buyer of Russian seaborne oil after Western nations imposed sanctions on Moscow following its 2022 invasion of Ukraine. Last month, the U.S. introduced new sanctions targeting Russia’s oil supply chain, leading to higher tanker freight rates and some buyers in China and India avoiding sanctioned vessels.
“Our relationship with India is based on economic pragmatism,” Sorokin said at the India Energy Week conference. “We believe energy trade shouldn’t be hindered by any politics.”
Sorokin stated that it would take more time to determine the full impact of the latest U.S. measures. “You cannot judge the situation on the basis of a few weeks of data. More time is needed to assess these things, but we believe that constructive relationships will continue to be successful,” he said.
Russia’s oil supply to India declined in December and January compared to the previous six months. Indian Oil Corp (IOC), the country’s largest refiner, recently indicated a possible reduction in Russian oil imports this fiscal year due to the latest U.S. sanctions.
IOC Chairman A S Sahney said on Tuesday that the company is purchasing Russian crude without involving sanctioned entities. Sorokin called the sanctions illegal and said they have disrupted the global economy.
“Tens of billions of dollars have been taken away from developing economies, and they have also increased the cost of capital for everyone in this industry,” he said. “Sanctions have added an element of uncertainty in a sector like energy where projects have very long lead times.”
Sorokin added that Russia possesses the technology necessary to develop its resources and will continue to be a key player in the global oil market.
