New Delhi: As the US Treasury imposed sanctions on Russian oil producers last week, India, the world's third-largest oil importer and consumer, does not expect any disruption to Russian oil supply in the next two months as the US-sanctioned tankers are allowed to discharge crude until March, a top oil ministry official source said on Monday on condition of anonymity.
When asked about the supply disruption after two months, the source said, "We are optimistic about the supply and India will allow Russian oil cargoes booked before Jan 10 to discharge at ports. The market is waiting for Russia to respond to sanctions and Russia will find ways to reach us,” the source said at the sidelines of an energy conference titled “India Energy Week 2025 to Redefine Global Energy Dialogue” here in the national capital.
The comments come at a time when many of the tankers have been used to ship oil to India and China as Western sanctions and a price cap imposed by the group of seven countries in 2022 shifted trade in Russian oil from Europe to Asia. Some tankers have also shipped oil from Iran, which is also under sanctions.
The US Treasury on Friday reportedly targetted Russian oil producers like Gazprom Neft and Surgutneftegas along with over 183 vessels that have been used to transport Russian oil to countries like India and China. The new sanctions of the US on Russian oil firms and tankers are aimed at cutting the amount of oil Russia can sell to its top customers like China and India and it could be part of ongoing efforts to finance its war in Ukraine as well.
The global Brent crude futures extended gains to climb above $81 a barrel on Monday, their highest since August, on expected disruption of Russian oil supply to China and India. “The spike in price is a knee-jerk reaction. We expect Russia could offer deeper discounts for crude exports to India to meet the $60 a barrel price cap to continue exports,” the source said, adding that Brent will ease below $80 because there is no shortage of supply.
Building on the remarkable success of its previous two editions, India Energy Week 2025 or IEW '25, the flagship energy event will be held under the patronage of the Ministry of petroleum and Natural Gas, organised by Federation of Indian Petroleum Industry (FIPI), from February 11-14, 2025 here. The event is poised to be the most comprehensive and inclusive global energy gathering of the year.
Ministry of Petroleum & Natural Gas Secretary Pankaj Jain said that the IEW 2025 offers a platform where global stakeholders can explore opportunities, and witness India’s leadership in navigating complex energy transitions. “We expect a huge footfall of around 70,000 participants with over 700 exhibitors from 10 countries, including energy giants like Russia. This event also represents a crucible of global energy innovation of key energy projects, including green hydrogen, solar innovations, or advanced exploration techniques,” Jain said.
In line with India’s commitment to fostering a thriving start-up ecosystem and promoting innovation, the government also said that IEW 2025 would host the Avinya Energy Startup Challenge 2.0. “The top five startups from this challenge will gain exclusive access to showcase their cutting-edge solutions at the event, significantly boosting their global visibility and impact,” the ministry said in a statement.