By Admin 
Russian Crude Oil: The intentions of US President Donald Trump, who is trying to end the Russia-Ukraine war, are now showing results. After American sanctions, India has now gradually started reducing the purchase of cheap crude oil from Russia. After buying oil at concessional rates for almost three years, Indian oil companies may now have to pay higher prices for oil.
great dependence on Russia
HMEL, a joint venture between Hindustan Petroleum Corporation Limited (HPCL) and Mittal Group, has announced that it will no longer buy crude oil from Russia. HMEL has become the first Indian company to formally announce stop buying oil from Moscow after US sanctions.
India imports about 86 percent of its oil needs. By mid-2022, Russia had become India’s largest oil supplier and was supplying about one-third of the oil to India at cheap prices. India was importing about 1.75 million barrels of oil daily from Russia, which mainly included companies like Rosneft and Lukoil.
What will be the effect?
Recently America has imposed new sanctions on Rosneft and Lukoil. This has had a direct impact on shipping, insurance and trading networks. Banks have now become cautious about these transactions, due to which transaction risk and low profits have become a challenge for Indian companies. Market experts say that now volatility in crude oil prices may increase. According to Rahul Khatri, VP (Commodities), Mehta Equities, due to US sanctions, a situation of uncertainty has arisen in global oil supply.
At the same time, Vinod Nair, Head of Research, Geojit Investments, warned that the increase in oil prices could have a direct impact on India’s inflation. He said that “India will have to pay higher prices for oil imports, which may increase economic pressure.” Meanwhile, Reliance Industries and Indian Oil Corporation have stopped new purchases from Russia, while Bharat Petroleum and Mangalore Refinery have started increasing imports from the US and Gulf countries.
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