U.S. will not sanction India for buying Russian oil, say senior American officials

Source: The post is based on the article “U.S. will not sanction India for buying Russian oil, say senior American officials” published in The Hindu on 10th February 2023.

What is the News?

A Senior US diplomat has made it clear that the United States was not looking to sanction India for its purchases of Russian oil. 

Background

Following its invasion of Ukraine, Russia had fewer buyers for its Ural crude oil, with some foreign governments and companies deciding to shun its energy exports, and its price started to fall.

At one point in early 2022, Russian Urals crude was more than $30 a barrel cheaper than Brent Crude (the global benchmark).

India’s oil purchase from Russia

In recent months, Indian purchases of Russian oil have increased steadily with Russia displacing traditional heavyweights like Iraq and Saudi Arabia to become India’s top supplier of oil. 

According to numerous reports, the sale of oil to India and China may be helping Russia stay afloat even as powers like the United States and the European Union work to shrink Russia’s oil revenues.

Apart from oil, India and Russia’s defence deals are also on track. Russian Ambassador said that Russia will soon complete the supplies of the third regiment of the S-400 Triumf surface-to-air missile systems to India as both sides are committed to completing the whole contract.