India tells US that reducing buying Russian oil depends on purchases of sanctioned Iranian, Venezuelan oil: Report

Indian officials have reportedly conveyed to the US administration that any significant reduction in Russian oil imports by Indian refiners hinges on Washington's willingness to allow crude purchases from sanctioned suppliers Iran and Venezuela. This request was reiterated during recent meetings in the US, according to a person familiar with the discussions.

According to a report in Bloomberg that quoted people in the know, a delegation of Indian officials visiting the US this week directly raised the issue with American counterparts. Indian representatives have stressed that restricting Indian refiners' access to Russian, Iranian, and Venezuelan crude simultaneously could cause global prices to surge, the report added. 

The talks come as New Delhi engages with Washington following the imposition of steep tariffs on Indian goods, a move linked to India's ongoing oil trade with Russia. Despite the additional levies, India has continued to import crude from Russia. 

Commerce minister Piyush Goyal, speaking in New York, stated that India intends to increase its purchases of American oil and gas. He remarked, "our energy security goals will have a very high element of US involvement." He said India is seeking to increase its trade with the United States in energy products, and that US involvement is vital for India's energy security. 

At an event in New York, Goyal described the US as a natural partner in energy security and expressed optimism about expanding trade in energy products. He said, "Being close friends, natural partners, our energy security goals will have a very high element of US involvement, which will ensure price stability, diversified sources of energy for India and help us unlock limitless possibilities with the US on various fronts." 

Russia has been offering discounted crude to India after other buyers reduced purchases following the war in Ukraine. India imports nearly 90 per cent of its oil requirements, and access to cheaper Russian, Iranian, or Venezuelan barrels has lessened its import bill.