According to India’s largest oil company, Oil and Natural Gas Corporation (ONGC), importing Russian oil into India is a situation that benefits the global economy.

“By importing from Russia, we are also contributing to the global economy by freeing up some oil in the Middle East for other countries, especially in Europe.

So, it has been somewhat of a win-win situation,” said K.C. Ramesh, the CEO of ONGC, at the annual APPEC energy conference organized by S&P Global Insights in Singapore.

Since the Russian invasion of Ukraine in February last year, Indian refineries have been purchasing affordable Russian oil. Moscow has since become the primary source of oil for India, accounting for roughly 40% of India’s oil imports.

Major world powers, including the European Union and the Group of Seven (G7), have imposed sanctions and restrictions on Russian oil exports due to its unprovoked war in Ukraine.

According to Ramesh, the Indian economy benefits from the lower prices of Russian oil.

The purchase of cheap Russian oil by India has faced criticism from Western countries. In May, the European Union’s top diplomat, Josep Borrell, called on the bloc to take action against India for re-selling Russian refined oil to Europe.

India is the world’s third-largest energy importer, with over 80% of its oil being sourced from international markets.

According to July data from S&P Global, India’s oil supply mainly comes from the Middle East and Russia.

Source: CNBC.com