A significant increase in Russian oil imports by India can expose New Delhi with a “big risk” because the United States prepares to increase the enforcement of sanctions against Moscow for invasion to Ukraine, said a senior US government official.
While US sanctions at this time against Russia did not prevent other countries from buying Russian oil, warning to raise hopes that Washington would strive to limit the purchases of other countries to the normal level.
Comments US officials came before the two-day visit of Russian Foreign Minister Sergei Lavrov to New Delhi and during a visit A.S. Deputy National Security Advisor for the Dalep Singh Economy.
Refiner in India, the third largest importer and consumer of the world, has banged Russian oil through spot tenders since the war broke out on February 24, taking advantage of deep discounts such as other buyers. India has bought at least 13 million Russian oil barrels since February 24, compared to almost 16 million barrels in all 2021.
“We don’t mind India who bought Russian oil as long as you buy it at a discount, without increasing significantly from previous years,” said the source that spoke with the terms of anonymity. “Some improvements are allowed,” said the source, which did not offer more detail.
The State Department realized the talks between Russia and India about oil purchases, spokesman said. “We continue to involve our partners in India and throughout the world about the importance of strong collective actions, including strong sanctions, to suppress the Kremlin to end their destructive war war against Ukraine as soon as possible,” spokesman said.
The Biden government coordinates with Indian and European countries to reduce the impact of Russian invasion to Ukraine on the energy market, while pushing steps to reduce dependence on Russian energy, a spokesman said.
The US Treasury Department rejected the comments and the White House National Security Council did not immediately respond to a comment request.
US sanctions reduce Russian capabilities, which usually produce around 1 in every 10 global oil barrels, to get crude oil to the market. The International Energy Agency based in Paris estimates that sanctions and reluctance of buyers can remove 3 million barrels per day from the global market of crude oil and enhanced products from April.
The source said Washington had no problem if India settled traded with Russia in a rupee or continued to pay in dollars, providing transactions that fit sanctions and with permitted entities.
India compiled a mechanism for completing trade with Russia, including through payments in rupees.
“Whatever they pay, whatever they do, need to be in accordance with sanctions. If not, they explained themselves at a big risk of”, said the source.
“As long as they are obedient with sanctions and do not significantly increase purchases, we are fine,” said the source.
Russia faces international sanctions led by Western countries that aim to isolate it from the global economy, including turning it off from the Global Bank’s Messaging System and limiting transactions by the central bank.
The White House has slapped sanctions against Russian entities and individuals, among others, Moscow’s economy crippling.
The Biden government has also forbidden the import of Russian energy, including oil. But so far it has not targeted Russian oil and gas exports to other countries, because the administration weighed on the impact of the global oil market and US motorbike fuel prices.
New Delhi called for a direct ceasefire in Ukraine but has refused to explicitly condemn Moscow’s actions. This has increased from voting on several u.n. Resolution in the war.
US President Joe Biden said this month India was “rather faltering” in acting against Russia.
US officials said India had to use a mechanism created by the United States which frees energy transactions, and import oil from ‘permitted entities’.
“We, for a few days and the next week, will increase sanction enforcement. We tell everyone, anywhere in the whole world to make sure you obey sanctions, this is a message to everyone”.
US sanctions have provided negligence until June 24 to complete energy trade with the Russian central bank.
