Amidst the ongoing conflict in West Asia and increasing uncertainty in the global oil market, there has been a relief news for India. Russia’s state oil company Rosneft has said that the supply of Russian crude oil to India will continue. At a time when concerns about oil supply and shipping routes are increasing, this confidence of Russia is considered very important for India’s energy security. This can help the country in controlling the availability and prices of oil.
Igor Sechin, head of Russia’s state oil company Rosneft, has said that the supply of Russian oil to India and China will remain stable. He said that Russia is an important part of the global energy market and cannot be separated from the supply chain. According to him, Russia’s energy partnership with India and China has proved beneficial for both sides. Sechin claimed that from April 2022 till now, India and China have got economic benefits of more than 40 billion dollars due to getting Russian oil at concessional rates. This has helped these countries in reducing their dependence on the expensive international market.
Why is Russian oil important for India?
After the Ukraine war, Russia started selling crude oil to many countries at concessional prices. India got the biggest benefit from this. India increased oil imports from Russia, which reduced the country’s import cost and helped in reducing pressure on fuel prices in the domestic market. Today Russia is among the major oil suppliers of India. India imports a large part of its total oil needs, so stable and cheap supply is very important for the country’s economy.
India’s energy demand will increase in the coming years
Citing International Energy Agency (IEA) data, Igor Sechin said that by the year 2035, India’s oil consumption can reach about 8 million barrels per day. This will be about 44 percent more than the current level. Due to rapid economic growth, industrial expansion and increasing population, India will be among the largest countries in the world in increasing energy demand. In such a situation, energy cooperation between Russia and India can become stronger.
The ongoing conflict in West Asia and increasing tension in the Strait of Hormuz have increased concerns about global oil supply. This route is considered one of the most important oil transportation routes in the world. However, Russia says that it will continue supplying oil to India. Experts believe that the current situation may motivate India to diversify energy sources and work more rapidly towards long-term energy security.
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