Russian OIl Archives - Lokmarg

India Buying Russian Oil Is None Of Our Business: German Ambassador

By LokMarg 22nd February 2023

India buying oil from Russia is “none of our business” German Ambassador to India Dr Philipp Ackermann said on Wednesday and noted that the decision on purchase is that of the Indian government.

The German Ambassador also said that India is a very appropriate candidate at some stage to come up with a solution to the Russia-Ukraine conflict but the stage is not now.
“India buying oil from Russia is none of our business basically. That’s something which the Indian Government decides and as you get it at a very low price, I cannot blame any government who buys it,” Ackermann said in response to queries at a press conference about the upcoming visit of German Chancellor Olaf Scholz to India on February 25 and 26.

“But we would like to see some Indian engagement at some stage. India is very appropriate candidate at some stage may be to come up with some solution. But, I don’t think this is the time now. I say this with all due caution because we have listened to what Putin said yesterday. When you want to find a solution to the conflict, you need two parties to be prepared to find this solution,” he added.

He referred to President Putin’s remarks at Russia’s Federal assembly.

“What we heard yesterday, Putin said…he didn’t mention the word – negotiation or peace, one single time. India has very, very skilled diplomacy, very good diplomacy, if they want to step up they will have to find a good moment to step up. What I can say is the moment is not now,” the German envoy added.

Russian President Vladimir Putin on Tuesday said that Moscow wanted to solve the conflict in Ukraine but the Western countries had prepared a “different scenario” behind its back, Reuters reported.

“We were doing everything possible to solve this problem peacefully, negotiating a peaceful way out of this difficult conflict, but behind our backs, a very different scenario was being prepared,” Putin said while addressing the federal assembly.

Speaking about Germany’s efforts to find a solution to the war, he said German Chancellor is every now and then on the telephone with Putin.

“There’s uninterrupted communication between the Kremlin and some European capitals. We have to be honest, this communication has delivered nothing, but we believe the Ukraine crisis must be resolved diplomatically,” he said.

Ackermann said Germany “will continue to help Ukraine to defend its territory”.

“The Russian side is surprised by the unity and strategic patience of the West. It is important to sustain the international order. Our position on Crimea is clear too. It is an integral part of Ukraine,” he said.

Talking about Scholz’s India visit, he said the German leader will also visit Bengaluru besides Delhi.

“German Chancellor Olaf Scholz will arrive in India on Saturday on a bilateral visit. This is his first visit in his current tenure to India. He will visit New Delhi and Bengaluru.”

The envoy said while the Ukraine crisis will figure in the German leader’s talks with Prime Minister Narendra Modi, there will be a focus on strengthening business ties.

“India is growing” and there are many “business opportunities”, he said and noted that there are around 30 CEOs in the German delegation.

“We see Russia and Ukraine very high on agenda during the meeting between German Chancellor Scholz and PM Modi. Recently, we have seen US President Biden in Ukraine. The Indo-Pacific will be on their meeting agenda too,” Ackermann said.

He also talked about the potential of the Free Trade Agreement in boosting trade ties.

“A Free Trade Agreement (FTA) with India will increase our business here in a substantive way. German businesses are very interested in getting an FTA done between Germany and India,” he said. (ANI)

Would Like To Keep It Going: Jaishankar On Russian Oil Imports

By LokMarg 8th November 2022

India’s relationship with Russia has worked to its advantage and New Delhi would like to keep that going, External Affairs Minister S Jaishankar said on Tuesday, as he reaffirmed strong ties with Moscow, describing the country as a steady and time-tested partner.

Jaishankar made these remarks during a joint press conference along with Russian Foreign Minister Sergey Lavrov in Moscow.
Answering a question about India’s increasing oil import amid western outcry, he said, “There is stress on the energy market created by a combination of factors. But as the world’s third-largest consumer… a consumer where the level of income is not very high, it is our obligation to ensure that the Indian consumer has the best possible access to the most advantageous terms on the international market.”

“…in that respect, the India-Russia relationship has worked to my advantage. If it works to my advantage, I would like to keep that going,” he added.

The external affairs minister said his presence in Moscow to review bilateral cooperation speaks volumes about India-Russia cooperation.

“The fact that I am here today with a delegation to review our cooperation speaks about India-Russia cooperation to see how we can take it forward to create a long-term and sustainable basis, says it all,” he said.

He further pointed out, how for India, Russia has been a steady and time-tested partner.

“…I said any objective evaluation of our relations for many decades would confirm that it has served both our countries very well., If it has served my country for many many decades. I think you can see the obvious interests and commitment I would have in keeping that relationship strong and steady,” he added.

The war in Ukraine which started in February has had a significant impact on global food security and has led to a sudden increase in crude prices following western sanctions on Moscow.

Earlier, India said its oil imports will be determined by its national interest and its large consumer base.

New Delhi has not condemned Russia since the start of the conflict and has maintained its independent position. However, on several UN forums, New Delhi has consistently called for a cessation of violence and advocated peace and diplomacy. (ANI)

India To Benefit From G7 Price Cap On Russian Oil: US Officials

By LokMarg 9th September 2022

The Group of Seven (G7) nations will soon convene and carve a price cap on Russian oil purchases, according to top US officials who said that India is going to benefit from the move even if it does not join the price cap mechanism directly.

US Treasury Department’s assistant secretary for terrorist financing and financial crimes, Elizabeth Rosenberg said, “India will have access to lower price of affordable energy (Russian Oil). It can leverage the price cap to negotiate a lower price with Russia. It is consistent with a price cap.”
“We will not allow Russia to profit and get a war premium for invading Ukraine,” the US official added.

US officials informed reporters that while determining the price cap the G7 will factor in the cost of production and will give an economic incentive to Russia so that its oil keeps flowing into the markets.

This assurance comes as several countries are facing high inflation due to spiralling fuel prices.

The price cap policy applies to Russian oil, any service provider from G7 involved in transporting, banking, insurance or any other service will have to attest that Russian oil is purchased below the price cap and has to be compliant.

US assistant secretary for economic policy and a counsellor to the secretary of the treasury, Ben Harris told reporters that “It is not a global cap, it is G7 cap, we are using G7 reach and influence, in this everyone wins except Russia.”

According to an estimate, G7 wealthy nations, which are made up of Britain, Canada, France, Germany, Italy, Japan and the United States, control nearly 90 per cent of insurers and vessels that transport oil and Russia is heavily dependent on it.

Officials also said that Russia is already doing long-term contracts with several buyers giving huge discounts, which means that the price cap mechanism will be working.

India is maintaining silence on the price cap initiative led by the United States even though it is one of the largest importers of oil and it depends on imported oil for its need which is more than 80 per cent.

Furthermore, India has maintained that restrictions on oil imports cannot work and it is importing Russian oil considering the low cost and easing of the burden on its economy.

Crude oil prices soared to near record high earlier this year due to the Russia-Ukraine conflict. Western countries led by the United States imposed several sanctions on Russia to limit its revenues from its energy exports.

However, Prime Minister Narendra Modi’s government decided to ramp up oil imports from Russia giving primacy to national interests.

On Thursday, Union Finance Minister Nirmala Sitharaman said the share of Russian oil in India’s overall oil import basket increased from 2 per cent to 13 per cent in a couple of months after the beginning of the Russia-Ukraine conflict.

Addressing an event organised by the Indian Council for Research on International Economic Relations (ICRIER), Sitharaman said credit must be given to PM Modi’s statesmanship to take the decision of boosting imports of Russian oil at discounts that helped in reducing the import bills.

Sitharaman said the increase in oil imports at discounted prices from Russia is a part of the “inflation management”.

Amid the unreasonably high oil and gas prices, External Affairs Minister S Jaishankar too has echoed a similar sentiment and said Russian oil imports are the “best deal” for the country. (ANI)