India to cut Russian oil imports by 50% amidst US sanctions, former Foreign Secretary claims
Former Foreign Secretary Kanwal Sibal stated India might reduce Russian oil imports by 50% ahead of Russian President Putin's visit, driven by US sanctions pressure. While oil purchases will decrease and India diversifies suppliers, bilateral ties will remain strong through increased cooperation in oil and gas investments, LNG, fertilizers, coking coal, pharmaceuticals, and IT, as both nations seek to navigate sanctions.
According to former Foreign Secretary Kanwal Sibal, India is poised to significantly reduce its oil purchases from Russia, potentially by 50%, a decision influenced by the looming threat of US sanctions. Sibal's comments, made ahead of Russian President Vladimir Putin's upcoming visit to New Delhi for the 23rd India-Russia Annual Summit, highlight India's need to diversify its energy suppliers to protect its public and private sector companies and banks from potential US punitive measures. A substantial cut in Russian oil imports, expected to drop by approximately 47% to 1 million barrels per day by December 2025, is already underway since October, prompting India to increase its reliance on US oil.Despite this anticipated reduction in crude oil trade, Sibal emphasized that Indo-Russia relations would not be negatively impacted. Instead, India plans to offset the decrease in oil purchases through enhanced cooperation and investments in Russia's oil and gas sector, including more LNG, fertilizer, and coking coal agreements. Additionally, both nations are expected to deepen their collaboration in critical areas such as pharmaceuticals and information technology, signaling a strategic pivot to maintain robust bilateral ties while adapting to the geopolitical landscape and navigating Western sanctions. The focus remains on finding mechanisms to circumvent US sanctions effectively.
