Russia on Wednesday (Feb 18) vehemently rejected US suggestions that India was preparing to cut back on purchases of Russian oil. Pushing back against claims from Washington that New Delhi has agreed to halt imports of Russian crude, the Russian Foreign Ministry said it had "no reason to believe" that was true. This comes as the United States continues to claim that New Delhi has "committed" to stop importing Russian crude under the US-India trade deal. Here's all you need to know.<h2>Nothing new in Trump's claims</h2>Speaking at her weekly briefing, Russian Foreign Ministry spokesperson Maria Zakharova said Moscow sees "no reason to believe" that India has shifted its position on buying Russian hydrocarbons."India’s purchase of Russian hydrocarbons benefits both countries and helps maintain stability in the international energy market," she said, according to PTI.Also read | <a href="https://www.wionews.com/world/white-house-releases-first-official-fact-sheet-on-us-india-trade-deal-says-it-ll-open-1-4b-strong-market-to-american-goods-1770701855280">White House releases first official fact sheet on US-India trade deal; no mention of New Delhi ending Russian oil purchase</a>Zakharova also took aim at remarks by US President Donald Trump and Secretary of State Marco Rubio, who have suggested that India had committed to stopping Russian oil imports as part of broader trade negotiations with Washington."There is nothing new in the claims of US President Donald Trump, as well as US Secretary of State Marco Rubio, who have grabbed the right to dictate to independent nations," she said.<h2>What sparked the row?</h2>The comments come after a recent phone conversation between Prime Minister Narendra Modi and President Trump. Following the call, both sides announced a reduction in US tariffs on Indian goods to 18 per cent from 50 per cent. That move included scrapping a 25 per cent duty imposed by Trump last August over India’s continued purchases of Russian oil.Also read | <a href="https://www.wionews.com/india-news/white-house-revises-us-india-trade-deal-fact-sheet-removes-key-references-including-pulses-and-digital-taxes-what-changed-explained-1770781073665">White House revises US-India trade deal fact sheet, removes key references, including pulses and digital taxes: What changed? Explained</a>Soon after, Rubio said India had "committed" to stop importing Russian crude. Trump, while announcing the trade deal, also claimed that Indian PM Modi had promised to end such imports.India, however, has neither confirmed nor publicly denied the claim. Officials in New Delhi have repeatedly stated that "national interests" remain the guiding principle in energy procurement decisions.

Russia has rejected US claims that India will halt Russian oil imports under a trade deal, saying it sees no shift in New Delhi’s position. Moscow dismissed remarks by President Donald Trump and Secretary of State Marco Rubio as baseless.

Russia on Wednesday (Feb 18) vehemently rejected US suggestions that India was preparing to cut back on purchases of Russian oil. Pushing back against claims from Washington that New Delhi has agreed to halt imports of Russian crude, the Russian Foreign Ministry said it had "no reason to believe" that was true. This comes as the United States continues to claim that New Delhi has "committed" to stop importing Russian crude under the US-India trade deal. Here's all you need to know. Nothing new in Trump's claims Speaking at her weekly briefing, Russian Foreign Ministry spokesperson Maria Zakharova said Moscow sees "no reason to believe" that India has shifted its position on buying Russian hydrocarbons. "India’s purchase of Russian hydrocarbons benefits both countries and helps maintain stability in the international energy market," she said, according to PTI. Also read | White House releases first official fact sheet on US-India trade deal; no mention of New Delhi ending Russian oil purchase Zakharova also took aim at remarks by US President Donald Trump and Secretary of State Marco Rubio, who have suggested that India had committed to stopping Russian oil imports as part of broader trade negotiations with Washington. "There is nothing new in the claims of US President Donald Trump, as well as US Secretary of State Marco Rubio, who have grabbed the right to dictate to independent nations," she said. What sparked the row? The comments come after a recent phone conversation between Prime Minister Narendra Modi and President Trump. Following the call, both sides announced a reduction in US tariffs on Indian goods to 18 per cent from 50 per cent. That move included scrapping a 25 per cent duty imposed by Trump last August over India’s continued purchases of Russian oil. Also read | White House revises US-India trade deal fact sheet, removes key references, including pulses and digital taxes: What changed? Explained Soon after, Rubio said India had "committed" to stop importing Russian crude. Trump, while announcing the trade deal, also claimed that Indian PM Modi had promised to end such imports. India, however, has neither confirmed nor publicly denied the claim. Officials in New Delhi have repeatedly stated that "national interests" remain the guiding principle in energy procurement decisions.

Russia has rejected US claims that India will halt Russian oil imports under a trade deal, saying it sees no shift in New Delhi’s position. Moscow dismissed remarks by President Donald Trump and Secretary of State Marco Rubio as baseless.

Moscow blasts US claim India will ditch Russian oil, says Trump trying to 'grab right to dictate to independent nations'

In yet another statement over the purchase of Russian oil, US Secretary of State Marco Rubio on Sunday (Feb 15) said that India has committed to stop buying Russian oil. Speaking at the Munich Security Conference on Saturday, Rubio said, “In our conversations with India, we’ve gotten their commitment to stop buying additional Russian oil.” On Feb 10, the White House released a factsheet on India-US trade deal. Interestingly, the only mention of Russian oil in the document was in a statement acknowledging that Trump "agreed to remove the additional 25 per cent tariff on imports from India in recognition of India's commitment to stop purchasing Russian Federation oil." Apart from this, there was no mention of how and in what capacity is India going to stop Russian oil purchase.&nbsp;<a href="https://www.wionews.com/videos/russian-oil-piles-up-at-sea-diplomatic-pressures-complicate-russia-s-search-for-oil-buyers-1770790884270/embed">https://www.wionews.com/videos/russian-oil-piles-up-at-sea-diplomatic-pressures-complicate-russia-s-search-for-oil-buyers-1770790884270/embed</a> &nbsp;<h2>India's take on Russian oil issue</h2>On Feb 14, External Affairs Minister S Jaishankar, while speaking at the Munich Security Conference in Germany, reiterated that India's decision with regards to energy issues are based on its "best interests." &nbsp;"As for energy issues, this is a complex market today. Oil companies in India, as in Europe, as probably in other parts of the world, look at availability, look at costs, look at risks and take the decisions that they feel are in their best interest," he said. He also added, ""India may not agree with all partners on every issue, dialogue and willingness to find common ground remain important."The statement by Jaishankar was in line with Foreign Secretary Vikram Misri's earlier statement that New Delhi will continue sourcing crude oil from multiple suppliers to safeguard energy stability.&nbsp;Also Read: <a href="https://www.wionews.com/world/-not-heard-from-anyone-except-russian-fm-sergei-lavrov-counters-us-claim-on-india-oil-deal-1770824550039">'Not heard from anyone except...': Russian FM Sergei Lavrov counters US claim on India oil deal</a><h2>Russia blames US</h2>On Feb 9, Russian Foreign Minister Sergei Lavrov said that US is using "coercive" measures like tariffs, sanctions and direct prohibitions in order to achieve its goal of economic domination. He also said that Washington is trying to transform Russian ties with friendly countries like India. "They are trying to ban India and our other partners from buying cheap, affordable Russian energy resources and are forcing them to buy US LNG at exorbitant prices," he said. He also said that he had not heard any confirmation from Indian officials, including Prime Minister Narendra Modi about ending Russian oil purchase.&nbsp;Also Read: <a href="https://www.wionews.com/world/white-house-releases-first-official-fact-sheet-on-us-india-trade-deal-says-it-ll-open-1-4b-strong-market-to-american-goods-1770701855280">White House releases first official fact sheet on US-India trade deal</a><h2>India-US trade deal</h2>India and the US confirmed a trade deal after months of negotiations with Indian Prime Minister Modi announcing the same formally on Feb 2 and appreciating US President Donald Trump’s leadership, terming it “vital for global peace, stability, and prosperity.” Trump claimed that India will stop buying Russian oil as the part of the deal. India or PM Modi did not mention anything on Russian oil purchase in its statement. Trump, who had imposed a 25 per cent tariff on Indian exports late last year and later doubled the tariffs on India to 50 per cent punishing Delhi for buying oil from Russia, reduced the tariffs to 18 per cent.&nbsp; &nbsp;

Marco Rubio claimed India agreed to halt Russian oil purchases, but Indian officials stress energy decisions are based on national interest. With no clear confirmation from New Delhi, the issue highlights tensions between economic priorities and geopolitical pressure.

In yet another statement over the purchase of Russian oil, US Secretary of State Marco Rubio on Sunday (Feb 15) said that India has committed to stop buying Russian oil. Speaking at the Munich Security Conference on Saturday, Rubio said, “In our conversations with India, we’ve gotten their commitment to stop buying additional Russian oil.” On Feb 10, the White House released a factsheet on India-US trade deal. Interestingly, the only mention of Russian oil in the document was in a statement acknowledging that Trump "agreed to remove the additional 25 per cent tariff on imports from India in recognition of India's commitment to stop purchasing Russian Federation oil." Apart from this, there was no mention of how and in what capacity is India going to stop Russian oil purchase. https://www.wionews.com/videos/russian-oil-piles-up-at-sea-diplomatic-pressures-complicate-russia-s-search-for-oil-buyers-1770790884270/embed India's take on Russian oil issue On Feb 14, External Affairs Minister S Jaishankar, while speaking at the Munich Security Conference in Germany, reiterated that India's decision with regards to energy issues are based on its "best interests." "As for energy issues, this is a complex market today. Oil companies in India, as in Europe, as probably in other parts of the world, look at availability, look at costs, look at risks and take the decisions that they feel are in their best interest," he said. He also added, ""India may not agree with all partners on every issue, dialogue and willingness to find common ground remain important." The statement by Jaishankar was in line with Foreign Secretary Vikram Misri's earlier statement that New Delhi will continue sourcing crude oil from multiple suppliers to safeguard energy stability. Also Read: 'Not heard from anyone except...': Russian FM Sergei Lavrov counters US claim on India oil deal Russia blames US On Feb 9, Russian Foreign Minister Sergei Lavrov said that US is using "coercive" measures like tariffs, sanctions and direct prohibitions in order to achieve its goal of economic domination. He also said that Washington is trying to transform Russian ties with friendly countries like India. "They are trying to ban India and our other partners from buying cheap, affordable Russian energy resources and are forcing them to buy US LNG at exorbitant prices," he said. He also said that he had not heard any confirmation from Indian officials, including Prime Minister Narendra Modi about ending Russian oil purchase. Also Read: White House releases first official fact sheet on US-India trade deal India-US trade deal India and the US confirmed a trade deal after months of negotiations with Indian Prime Minister Modi announcing the same formally on Feb 2 and appreciating US President Donald Trump’s leadership, terming it “vital for global peace, stability, and prosperity.” Trump claimed that India will stop buying Russian oil as the part of the deal. India or PM Modi did not mention anything on Russian oil purchase in its statement. Trump, who had imposed a 25 per cent tariff on Indian exports late last year and later doubled the tariffs on India to 50 per cent punishing Delhi for buying oil from Russia, reduced the tariffs to 18 per cent.

Marco Rubio claimed India agreed to halt Russian oil purchases, but Indian officials stress energy decisions are based on national interest. With no clear confirmation from New Delhi, the issue highlights tensions between economic priorities and geopolitical pressure.

Rubio says India ‘committed’ to stop Russian oil purchase days after Jaishankar's 'strategic autonomy' remark: Who said what

External Affairs Minister S Jaishankar declared on Saturday (Feb 14) that India remains "wedded to strategic autonomy," even as the country navigates volatile energy markets and a strengthening partnership with Washington. This renewed focus on independent foreign policy comes on the heels of a historic India-US trade deal that ended months of diplomatic friction.&nbsp;Jaishankar was speaking at the Munich Security Conference in Germany, and when asked whether the recent trade agreement with the US compels India to reduce its reliance on Russian oil.&nbsp;"We are very much wedded to strategic autonomy because it's very much a part of our history and our evolution. It's something which is very deep, and it's something which cuts across the political spectrum as well," he said.&nbsp;Also Read: <a href="https://www.wionews.com/world/-us-and-europe-belong-together-but-allies-should-defend-themselves-says-rubio-at-munich-security-conference-1771068794871">‘US and Europe belong together, but allies should defend themselves,’ says Rubio at Munich Security Conference</a>&nbsp;The Minister stated that India's energy sourcing policy is driven by commercial imperatives in a complex and dynamic global oil market.&nbsp;"As for energy issues, this is a complex market today. Oil companies in India, as in Europe, as probably in other parts of the world, look at availability, look at costs, look at risks and take the decisions that they feel are in their best interest," he noted.&nbsp;He further said that in a "rapidly changing global environment", countries have to reassess their calculations and recalculations, and added that "India may not agree with all partners on every issue, dialogue and willingness to find common ground remain important."&nbsp;Earlier in the day, US Secretary of State Marco Rubio claimed that India has committed to stop buying additional Russian oil, as the United States continue to tighten sanctions on Moscow over the Ukraine war.&nbsp;In our conversations with India, we’ve gotten their commitment to stop buying additional Russian oil,” he said, outlining steps being taken alongside Europe to sustain pressure on Moscow.

The Minister stated that India's energy sourcing policy is driven by commercial imperatives in a complex and dynamic global oil market.



External Affairs Minister S Jaishankar declared on Saturday (Feb 14) that India remains "wedded to strategic autonomy," even as the country navigates volatile energy markets and a strengthening partnership with Washington. This renewed focus on independent foreign policy comes on the heels of a historic India-US trade deal that ended months of diplomatic friction. Jaishankar was speaking at the Munich Security Conference in Germany, and when asked whether the recent trade agreement with the US compels India to reduce its reliance on Russian oil. "We are very much wedded to strategic autonomy because it's very much a part of our history and our evolution. It's something which is very deep, and it's something which cuts across the political spectrum as well," he said. Also Read: ‘US and Europe belong together, but allies should defend themselves,’ says Rubio at Munich Security Conference The Minister stated that India's energy sourcing policy is driven by commercial imperatives in a complex and dynamic global oil market. "As for energy issues, this is a complex market today. Oil companies in India, as in Europe, as probably in other parts of the world, look at availability, look at costs, look at risks and take the decisions that they feel are in their best interest," he noted. He further said that in a "rapidly changing global environment", countries have to reassess their calculations and recalculations, and added that "India may not agree with all partners on every issue, dialogue and willingness to find common ground remain important." Earlier in the day, US Secretary of State Marco Rubio claimed that India has committed to stop buying additional Russian oil, as the United States continue to tighten sanctions on Moscow over the Ukraine war. In our conversations with India, we’ve gotten their commitment to stop buying additional Russian oil,” he said, outlining steps being taken alongside Europe to sustain pressure on Moscow.

The Minister stated that India's energy sourcing policy is driven by commercial imperatives in a complex and dynamic global oil market.

‘Wedded to strategic autonomy’: EAM Jaishankar on India’s energy policy

India on Saturday (Feb 07) clarified its stand on the purchase of Russian oil, saying that safeguarding the country's energy needs is the top priority for New Delhi. The statement comes after the United States revoked the punitive 25 per cent tariffs levied on New Delhi over its oil trade with Moscow as part of the recently concluded India-US bilateral trade agreement.&nbsp;"Regarding India's energy sourcing, the government has stated publicly on several occasions that ensuring the energy security of 1.4 billion Indians is the supreme priority of the government," the Ministry of External Affairs spokesperson Randhir Jaiswal said.&nbsp;The MEA specified that diversifying energy sourcing in line with objective market conditions and evolving international dynamics remains central to India's strategy to ensure energy security for its population.&nbsp;It further underscored that the decisions taken by India's energy sector are guided by this overarching principle.&nbsp;"Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy to ensure this," Jaiswal said, adding that "All of India's actions are taken and will be taken with this in mind."&nbsp;Also Read: <a href="https://www.wionews.com/world/us-sets-june-deadline-for-ukraine-and-russia-to-end-war-says-zelensky-1770467368962">US sets June deadline for Ukraine and Russia to end war, says Zelensky</a>&nbsp;The MEA spokesperson's remark came after a statement from the White House stated that India has "committed to stop directly or indirectly importing" oil from Russia, as per the framework of the bilateral trade agreement between the two countries.&nbsp;Earlier in the day, Union Minister Piyush Goyal described the announcement of the interim framework of the India-US trade agreement on Saturday as "the day etched in golden letter." He stated that the $30 trillion US economy will be open to Indian exporters, with the lowest tariffs compared to neighbouring countries. At the same time, several sectors, such as gems and pharmaceuticals, are exempt from tariffs. "A $30 trillion economy is now open to our exporters. This joint statement gives every Indian citizen an opportunity for new hope, enthusiasm, and new resolutions. The 50 per cent tariff that Indian exporters faced will now be only 18 per cent. We will have the lowest tariffs compared to our neighbouring countries. Exporters of gems and pharmaceuticals will face zero duty in the US," he said.

The MEA said that diversifying energy sources, in line with market realities and evolving international dynamics, remains central to India’s strategy to ensure energy security for its 1.4 billion people.

India on Saturday (Feb 07) clarified its stand on the purchase of Russian oil, saying that safeguarding the country's energy needs is the top priority for New Delhi. The statement comes after the United States revoked the punitive 25 per cent tariffs levied on New Delhi over its oil trade with Moscow as part of the recently concluded India-US bilateral trade agreement. "Regarding India's energy sourcing, the government has stated publicly on several occasions that ensuring the energy security of 1.4 billion Indians is the supreme priority of the government," the Ministry of External Affairs spokesperson Randhir Jaiswal said. The MEA specified that diversifying energy sourcing in line with objective market conditions and evolving international dynamics remains central to India's strategy to ensure energy security for its population. It further underscored that the decisions taken by India's energy sector are guided by this overarching principle. "Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy to ensure this," Jaiswal said, adding that "All of India's actions are taken and will be taken with this in mind." Also Read: US sets June deadline for Ukraine and Russia to end war, says Zelensky The MEA spokesperson's remark came after a statement from the White House stated that India has "committed to stop directly or indirectly importing" oil from Russia, as per the framework of the bilateral trade agreement between the two countries. Earlier in the day, Union Minister Piyush Goyal described the announcement of the interim framework of the India-US trade agreement on Saturday as "the day etched in golden letter." He stated that the $30 trillion US economy will be open to Indian exporters, with the lowest tariffs compared to neighbouring countries. At the same time, several sectors, such as gems and pharmaceuticals, are exempt from tariffs. "A $30 trillion economy is now open to our exporters. This joint statement gives every Indian citizen an opportunity for new hope, enthusiasm, and new resolutions. The 50 per cent tariff that Indian exporters faced will now be only 18 per cent. We will have the lowest tariffs compared to our neighbouring countries. Exporters of gems and pharmaceuticals will face zero duty in the US," he said.

The MEA said that diversifying energy sources, in line with market realities and evolving international dynamics, remains central to India’s strategy to ensure energy security for its 1.4 billion people.

India on Russian oil imports: Diversification central to energy security for 1.4 bn citizens

Kremlin Spokesman Dmitry Peskov on Tuesday (Dec 2) said that the decline in India’s imports of Russian oil may only last for a “brief period” as Moscow plans to ramp up supplies to New Delhi. He added that Russia understands pressure on India, referring to the sweeping tariffs imposed by US President Donald Trump over its oil imports from Moscow. Peskov further said that they “admire” that India is very sovereign in defining its national interests. Kremlin spokesperson’s remarks come days ahead of Russian President Vladimir Putin’s visit to India, during which he will meet Prime Minister Narendra Modi.“We cannot interfere in the diplomatic relations between the US and India. We understand that there is pressure over India. This is the reason we have to be careful in creating an architecture of the relationship that must be free of any influence coming from any third country...We know that India is very soverign in defining its national interests. We admire this characteristic of India,” Peskov said.“We’re looking forward to possibilities despite everything to ensure our right to sell oil and to ensure the right of those who want to purchase oil to ensure the right to buy our oil. We are working on creating a necessary environment for ensuring these rights,” he said.Lauding the Russia-India relationship, Peskov said, “Russia-India relationship is not just a standard set of diplomatic protocols and trade agreements, it’s much more important.”The Kremlin spokesperson further underlined the bilateral relations between the two countries that have deep historical roots. “Our bilateral relationship rests on a deep historical background of mutual understanding, partnership, and a shared vision of global affairs and a system grounded in international law, the rule of law, and the ability to take each other’s interests into account. This is a very important characteristic of our relationship,” he said.He continued, “We are proud to have been shoulder to shoulder next to our Indian friends during their historic growth. We are very grateful to India for a very friendly stand nowadays, very friendly stand towards our country...”Peskov also expressed Russia’s support for India against terrorism. “We strongly condemn terrorism. Our country has suffered a lot because of terrorism. We know that India has faced this threat numerous times. We think that the only way to combat terrorism is to have international cooperation...” he said.

Kremlin spokesperson’s remarks come days ahead of Russian President Vladimir Putin’s visit to India, during which he will meet Prime Minister Narendra Modi.

Kremlin Spokesman Dmitry Peskov on Tuesday (Dec 2) said that the decline in India’s imports of Russian oil may only last for a “brief period” as Moscow plans to ramp up supplies to New Delhi. He added that Russia understands pressure on India, referring to the sweeping tariffs imposed by US President Donald Trump over its oil imports from Moscow. Peskov further said that they “admire” that India is very sovereign in defining its national interests. Kremlin spokesperson’s remarks come days ahead of Russian President Vladimir Putin’s visit to India, during which he will meet Prime Minister Narendra Modi. “We cannot interfere in the diplomatic relations between the US and India. We understand that there is pressure over India. This is the reason we have to be careful in creating an architecture of the relationship that must be free of any influence coming from any third country...We know that India is very soverign in defining its national interests. We admire this characteristic of India,” Peskov said. “We’re looking forward to possibilities despite everything to ensure our right to sell oil and to ensure the right of those who want to purchase oil to ensure the right to buy our oil. We are working on creating a necessary environment for ensuring these rights,” he said. Lauding the Russia-India relationship, Peskov said, “Russia-India relationship is not just a standard set of diplomatic protocols and trade agreements, it’s much more important.” The Kremlin spokesperson further underlined the bilateral relations between the two countries that have deep historical roots. “Our bilateral relationship rests on a deep historical background of mutual understanding, partnership, and a shared vision of global affairs and a system grounded in international law, the rule of law, and the ability to take each other’s interests into account. This is a very important characteristic of our relationship,” he said. He continued, “We are proud to have been shoulder to shoulder next to our Indian friends during their historic growth. We are very grateful to India for a very friendly stand nowadays, very friendly stand towards our country...” Peskov also expressed Russia’s support for India against terrorism. “We strongly condemn terrorism. Our country has suffered a lot because of terrorism. We know that India has faced this threat numerous times. We think that the only way to combat terrorism is to have international cooperation...” he said.

Kremlin spokesperson’s remarks come days ahead of Russian President Vladimir Putin’s visit to India, during which he will meet Prime Minister Narendra Modi.

‘We cannot interfere…’: What Kremlin said on India’s declining Russian oil imports

India's love for cheap oil from Russia is hurting the country's rupee trade plan. Data based on figures from the trade ministry showed India's imports from Russia in the eight months leading up to November were about 16 times greater than its exports.

A Bloomberg report quoting sources showed India's push for a rupee payment mechanism is becoming futile due to the growing trade gap with Russia. The sources said Russian banks had not initiated any payments in the Indian currency yet as they do not want a pile-up of rupees.

Ajay Sahai, director general and chief executive officer of the Federation of Indian Export Organisations told Bloomberg, "as far as we know, there has been no transaction in Indian rupees so far."

That comes when India promotes rupee trade with several countries, including Sri Lanka, Bangladesh, and South Africa.

The Rupee trade mechanism began to take shape due to Russia's conflict with Ukraine, which prompted US-led sanctions and drove India to increase its purchases of inexpensive oil from Moscow to reduce its import bill in the face of rising commodity prices.

The system served as a model for creating such agreements with other countries like Sri Lanka and Mauritius.

What a slow rupee trade with Russia can do is weigh further on the Indian currency, which has already weakened the most among emerging Asian currencies over the past year.

The rupee has repeatedly breached several record lows against the dollar over the past year.

The Indian currency was changing hands at around 74 per dollar before the Ukraine crisis started late in February last year but has since fallen to multiple all-time lows, breaching the 83 per dollar level for the first time ever.

The currency has been trading in a narrow range but closer to 83 per dollar for a few months. India is relying on the internationalisation of the rupee to lower dollar demand and protect the economy from external shocks.

Last month, officials from India and Russia met to discuss methods to increase exports to Moscow in industries like electronics. That was to restart the rupee trade mechanism. But traders are considering alternative modes of payment.

<h2>Pakistan to buy Russian oil and gas, Putin calls the country a 'key partner'</h2>

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/pakistan-to-buy-russian-oil-and-gas-putin-calls-the-country-a-key-partner-554782/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The Reserve Bank of India announced the settlement of international trade in rupees plan in July.&nbsp;But seven months since, the system is mostly restricted to payments for the import of defence equipment.

India refiners, too, prefer to pay in the United Arab Emirates dirham, which is pegged to the dollar, as payment in roubles is also difficult because there is no set rate for the Russian currency.

Reliance Industries Ltd., the largest firm in India by market value, and BPCL are two Indian refiners that use dirhams to pay for some shipments of Russian petroleum to avoid Western sanctions.

Russia has emerged as India's top crude oil supplier, overtaking Saudi Arabia and Iraq.

Even though petroleum remains the main commodity traded between the two countries, imports of goods like fertiliser and sunflower oil have increased recently.

India's imports from Russia increased by more than 400 per cent in the eight months leading up to November compared to the same period last year.

But exports decreased by 14 per cent during the same period, indicating that the government's efforts to increase outbound shipments have not been very successful.

(With inputs from agencies)

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

India's love for cheap oil from Russia is hurting the country's rupee trade plan. Data based on figures from the trade ministry showed India's imports from Russia in the eight months leading up to November were about 16 times greater than its exports.

India's love for cheap oil from Russia is hurting the country's rupee trade plan. Data based on figures from the trade ministry showed India's imports from Russia in the eight months leading up to November were about 16 times greater than its exports. A Bloomberg report quoting sources showed India's push for a rupee payment mechanism is becoming futile due to the growing trade gap with Russia. The sources said Russian banks had not initiated any payments in the Indian currency yet as they do not want a pile-up of rupees. Ajay Sahai, director general and chief executive officer of the Federation of Indian Export Organisations told Bloomberg, "as far as we know, there has been no transaction in Indian rupees so far." That comes when India promotes rupee trade with several countries, including Sri Lanka, Bangladesh, and South Africa. The Rupee trade mechanism began to take shape due to Russia's conflict with Ukraine, which prompted US-led sanctions and drove India to increase its purchases of inexpensive oil from Moscow to reduce its import bill in the face of rising commodity prices. The system served as a model for creating such agreements with other countries like Sri Lanka and Mauritius. What a slow rupee trade with Russia can do is weigh further on the Indian currency, which has already weakened the most among emerging Asian currencies over the past year. The rupee has repeatedly breached several record lows against the dollar over the past year. The Indian currency was changing hands at around 74 per dollar before the Ukraine crisis started late in February last year but has since fallen to multiple all-time lows, breaching the 83 per dollar level for the first time ever. The currency has been trading in a narrow range but closer to 83 per dollar for a few months. India is relying on the internationalisation of the rupee to lower dollar demand and protect the economy from external shocks. Last month, officials from India and Russia met to discuss methods to increase exports to Moscow in industries like electronics. That was to restart the rupee trade mechanism. But traders are considering alternative modes of payment. Pakistan to buy Russian oil and gas, Putin calls the country a 'key partner' The Reserve Bank of India announced the settlement of international trade in rupees plan in July. But seven months since, the system is mostly restricted to payments for the import of defence equipment. India refiners, too, prefer to pay in the United Arab Emirates dirham, which is pegged to the dollar, as payment in roubles is also difficult because there is no set rate for the Russian currency. Reliance Industries Ltd., the largest firm in India by market value, and BPCL are two Indian refiners that use dirhams to pay for some shipments of Russian petroleum to avoid Western sanctions. Russia has emerged as India's top crude oil supplier, overtaking Saudi Arabia and Iraq. Even though petroleum remains the main commodity traded between the two countries, imports of goods like fertiliser and sunflower oil have increased recently. India's imports from Russia increased by more than 400 per cent in the eight months leading up to November compared to the same period last year. But exports decreased by 14 per cent during the same period, indicating that the government's efforts to increase outbound shipments have not been very successful. (With inputs from agencies) WATCH WION LIVE HERE

India's soaring Russian oil imports are hurting the rupee trade plan

Despite US attempts to strangle the Russian economy, Moscow has successfully found new markets for its biggest exports, including energy products. However, the United States has also continued to buy Russian goods, even increasing its imports in recent months.

US imports from Russia increases from September to October: Report

India's external affairs minister S Jaishankar while speaking at the Globsec 2022 Bratislava forum declared that "buying Russian gas is not funding the war".

"Why it's only Indian money and fund coming from India and not gas coming to Europe which funds war, let's be even-handed out," India's foreign minister told the forum.

<a href="https://www.wionews.com/india-news/jaishankar-better-to-engage-with-world-on-own-terms-than-try-to-please-it-474304">Also Read:&nbsp;</a><a href="http://13.235.153.162/india-news/jaishankar-better-to-engage-with-world-on-own-terms-than-try-to-please-it-474304" hreflang="en">&nbsp;Better to engage with world on own terms than try to please it</a><a href="https://www.wionews.com/india-news/jaishankar-better-to-engage-with-world-on-own-terms-than-try-to-please-it-474304">, says Jaishankar</a>

Explaining the recent oil shortage in the market, India's external affairs minister said: "Look at the narrative that import has gone up nine times, it has gone up nine times from a very low base and it was a very low base because at that time markets were moron."

"Why countries in Europe and West and the United States, why don`t they allow Iranian oil in the market why don`t they allow Venezuela oil to come to the market? They have squeezed every other source of oil we have and then say you will not go to the market and get the best deal for the people, it's not a fair approach."

Watch:&nbsp;EU’s partial ban on Russian oil: How will it affect Russia?

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India's foreign minister asserted that there is a shortage of the oil in the market but dismissed reports of buying oil and "selling &nbsp;to somebody else"

"Europe has to grow up out of the mindset that Europe's problems are the world`s problem but the world`s problems are not Europe`s problem, it is you it`s yours, it is me it's ours," he said.

On relations with China, India's foreign minister acknowledged that it is a "difficult relationship" but added that the government is "perfectly capable of managing it".

"A lot of our problems in China have nothing to do with Ukraine and have nothing to do with Russia. They are predated," the foreign minister stated.

"A linkage between China and India and what's happening in Ukraine. China and India happened way before anything happened in Ukraine. The Chinese do not need a precedent somewhere else on how to engage us or not engage us or be difficult with us or not be difficult with us," the minister said.

(With inputs from Agencies)

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India's external affairs minister S Jaishankar while speaking at the Globsec 2022 Bratislava forum declared that "buying Russian gas is not funding the war". "Why it's only Indian money and fund coming from India and not gas coming to Europe which funds war, let's be even-handed out," India's foreign minister told the forum.

India's external affairs minister S Jaishankar while speaking at the Globsec 2022 Bratislava forum declared that "buying Russian gas is not funding the war". "Why it's only Indian money and fund coming from India and not gas coming to Europe which funds war, let's be even-handed out," India's foreign minister told the forum. Also Read: Better to engage with world on own terms than try to please it, says Jaishankar Explaining the recent oil shortage in the market, India's external affairs minister said: "Look at the narrative that import has gone up nine times, it has gone up nine times from a very low base and it was a very low base because at that time markets were moron." "Why countries in Europe and West and the United States, why don`t they allow Iranian oil in the market why don`t they allow Venezuela oil to come to the market? They have squeezed every other source of oil we have and then say you will not go to the market and get the best deal for the people, it's not a fair approach." Watch: EU’s partial ban on Russian oil: How will it affect Russia? India's foreign minister asserted that there is a shortage of the oil in the market but dismissed reports of buying oil and "selling to somebody else" "Europe has to grow up out of the mindset that Europe's problems are the world`s problem but the world`s problems are not Europe`s problem, it is you it`s yours, it is me it's ours," he said. On relations with China, India's foreign minister acknowledged that it is a "difficult relationship" but added that the government is "perfectly capable of managing it". "A lot of our problems in China have nothing to do with Ukraine and have nothing to do with Russia. They are predated," the foreign minister stated. "A linkage between China and India and what's happening in Ukraine. China and India happened way before anything happened in Ukraine. The Chinese do not need a precedent somewhere else on how to engage us or not engage us or be difficult with us or not be difficult with us," the minister said. (With inputs from Agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Buying Russian gas is not funding the war, says Jaishankar

The European Union(EU) on Friday declared a ban on most Russian oil imports and cut Russia's bank Sberbank from the global SWIFT messaging system.

EU also froze the assets of President Vladimir Putin's alleged girlfriend Alina Kabaeva and put her on visa ban blacklist along with Russian Army officials suspected of war crimes in Ukraine's Bucha.

EU proposes to block 90 per cent of Russian oil imports by the end of the year.

The move comes as &nbsp;OPEC+ nations decided to boost oil production in July even as&nbsp;oil prices continued to rise.

<a href="https://www.wionews.com/photos/himars-artillery-systems-jado-how-ukraine-can-win-grinding-battle-against-russia-in-donbas-484482">Also Read in Pics:&nbsp;How Ukraine can win grinding battle against Russia in Donbas</a>

Amid the ban on Russian oil, Serbia declared it had managed a three-year natural gas deal with Russia amid condemnation from the EU. Russia had earlier stopped gas supplies to Finland over the country's insistence on paying in dollars as Russia insisted on being paid in roubles.

Meanwhile, Russia continued to blame Western nations over&nbsp;the food crisis asserting that the Black Sea has been heavily mined which has led the Ukrainian wheat supply to be stranded in the ports. Russia and Ukraine are the main suppliers of global wheat.

Watch:&nbsp;Ukraine rape victims suffer in silence

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The war in Ukraine entered its hundredth day on Friday as Russian forces continued their push in eastern Donbas. Although President Zelensky claimed "victory will be ours" but the president conceded that at least 20 per cent of territory has been lost to Russia since the invasion began on February 24.

Ukraine said it is engaging Russian forces in Severodonetsk city despite heavy bombardment. As the Russian forces have continued to press on, the Biden administration declared it would be sending advanced rocket launch systems to Ukraine.

In the latest sanctions, the US imposed blacklisted a Monaco company that provides luxury yachts to the rich in Russia as Western nations continue to target Putin's regime.&nbsp;

(With inputs from Agencies)

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The European Union(EU) on Friday declared a ban on most Russian oil imports and cut Russia's bank Sberbank from the global SWIFT messaging system. EU also froze the assets of President Vladimir Putin's alleged girlfriend Alina Kabaeva and put her on visa ban blacklist along with Russian Army officials suspected of war crimes in Ukraine's Bucha.

The European Union(EU) on Friday declared a ban on most Russian oil imports and cut Russia's bank Sberbank from the global SWIFT messaging system. EU also froze the assets of President Vladimir Putin's alleged girlfriend Alina Kabaeva and put her on visa ban blacklist along with Russian Army officials suspected of war crimes in Ukraine's Bucha. EU proposes to block 90 per cent of Russian oil imports by the end of the year. The move comes as OPEC+ nations decided to boost oil production in July even as oil prices continued to rise. Also Read in Pics: How Ukraine can win grinding battle against Russia in Donbas Amid the ban on Russian oil, Serbia declared it had managed a three-year natural gas deal with Russia amid condemnation from the EU. Russia had earlier stopped gas supplies to Finland over the country's insistence on paying in dollars as Russia insisted on being paid in roubles. Meanwhile, Russia continued to blame Western nations over the food crisis asserting that the Black Sea has been heavily mined which has led the Ukrainian wheat supply to be stranded in the ports. Russia and Ukraine are the main suppliers of global wheat. Watch: Ukraine rape victims suffer in silence The war in Ukraine entered its hundredth day on Friday as Russian forces continued their push in eastern Donbas. Although President Zelensky claimed "victory will be ours" but the president conceded that at least 20 per cent of territory has been lost to Russia since the invasion began on February 24. Ukraine said it is engaging Russian forces in Severodonetsk city despite heavy bombardment. As the Russian forces have continued to press on, the Biden administration declared it would be sending advanced rocket launch systems to Ukraine. In the latest sanctions, the US imposed blacklisted a Monaco company that provides luxury yachts to the rich in Russia as Western nations continue to target Putin's regime. (With inputs from Agencies) WATCH WION LIVE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Ukraine war: EU bans most Russian oil, targets Putin's alleged girlfriend with sanctions

The European Union is said to propose a phased out ban of Russian oil imports, this will come as part of fresh round of sanctions against Russia for its invasion of Ukraine. According to diplomats, the European Commission which commonly draws up sanctions for the bloc is currently in the midst of preparing a text that could be put in front of the 27 member states as possible.

EU to propose phasing out Russian oil imports in new sanctions wave

Top officials from the world's two largest democracies held ministerial-level talks in Washington after their leaders from India and the United States discussed their differences over the Ukraine war. WION's principal correspondent Siddhant Sibal brings in more on this.

India | MEA: Our monthly purchase of Russian oil less than Europe's in a day

Just hours after US President Joe Biden spoke to India's Prime Minister Narendra Modi in a virtual summit, US Secretary of State Antony Blinken said,&nbsp;"It is important that all countries, especially those with leverage, press Putin to end the war" referring to the Ukraine war.

"It's also important that democracy stand together and speak with one voice to defend the values that we share," the US Secretary of state added.

<a href="https://www.wionews.com/india-news/narendra-modi-and-joe-hold-virtual-talks-to-discuss-russia-ukraine-war-470320">Also Read: Modi and Joe Biden hold virtual talks, discuss Russia-Ukraine war and other issues</a>

Defending India's position on buying Russian oil, India's external affairs minister S. Jaishankar&nbsp;said: "We buy some energy necessary for our energy security. But I suspect, looking at figures, our purchases for the month would be less than what Europe does in an afternoon."

Watch |&nbsp;Ukraine invasion: What Modi told Biden

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The US said energy imports from Russia are not banned&nbsp;and India is not violating US sanctions.

"Quad is a great stabiliser," Jaishankar added. Amid sanctions on Russia, Blinken said&nbsp;the Biden administration still has "not made determination potential sanctions or waivers under CAATSA law" with India intent on buying the S-400 missile defence system from Russia.

"India is the third-largest consumer of energy..we increased energy trade with India," Blinken informed.

S. Jaishankar&nbsp;said the India US 2+2 ministerial had helped to "strategise on mitigating the volatility and unpredictability that the world is currently experiencing".

<a href="https://www.wionews.com/india-news/india-us-22-dialogue-a-momentous-moment-in-global-affairs-470362">Also Read:&nbsp;India-US 2+2 dialogue a 'momentous moment' in global affairs</a>

In a joint statement after India, US 2+2 dialogue in Washington both sides called on "Pakistan to take immediate, sustained, and irreversible action to ensure that no territory under its control is used for terrorist attacks."

(With inputs from Agencies)

Just hours after US President Joe Biden spoke to India's Prime Minister Narendra Modi in a virtual summit, US Secretary of State Antony Blinken said, "It is important that all countries, especially those with leverage, press Putin to end the war" referring to the Ukraine war.

Just hours after US President Joe Biden spoke to India's Prime Minister Narendra Modi in a virtual summit, US Secretary of State Antony Blinken said, "It is important that all countries, especially those with leverage, press Putin to end the war" referring to the Ukraine war. "It's also important that democracy stand together and speak with one voice to defend the values that we share," the US Secretary of state added. Also Read: Modi and Joe Biden hold virtual talks, discuss Russia-Ukraine war and other issues Defending India's position on buying Russian oil, India's external affairs minister S. Jaishankar said: "We buy some energy necessary for our energy security. But I suspect, looking at figures, our purchases for the month would be less than what Europe does in an afternoon." Watch | Ukraine invasion: What Modi told Biden The US said energy imports from Russia are not banned and India is not violating US sanctions. "Quad is a great stabiliser," Jaishankar added. Amid sanctions on Russia, Blinken said the Biden administration still has "not made determination potential sanctions or waivers under CAATSA law" with India intent on buying the S-400 missile defence system from Russia. "India is the third-largest consumer of energy..we increased energy trade with India," Blinken informed. S. Jaishankar said the India US 2+2 ministerial had helped to "strategise on mitigating the volatility and unpredictability that the world is currently experiencing". Also Read: India-US 2+2 dialogue a 'momentous moment' in global affairs In a joint statement after India, US 2+2 dialogue in Washington both sides called on "Pakistan to take immediate, sustained, and irreversible action to ensure that no territory under its control is used for terrorist attacks." (With inputs from Agencies)

Our purchases for the month would be less than what Europe does in an afternoon: Jaishankar on Russian oil

Ahead of the two plus two dialogue between India and the United States, Indian PM Narendra Modi is scheduled to hold a virtual meeting with US president Joe Biden. The meeting comes at a time when the United States does not want to see an uptick in Russian energy imports by India.

Joe Biden, Narendra Modi to hold talks amid India's Russian oil imports

If a recent study is to be believed, European countries are making oil payments amounting to $285 million (£217 million) every day to Russia, which is then helping Putin to fund&nbsp;his war against Ukraine.

New analysis by the Transport &amp; Environment (T&amp;E) thinktank estimates that Russia received $104bn from its crude, petrol and diesel exports to Europe and UK last year, more than twice the $43bn it took from gas shipments.

“Europe is sending over a quarter of a billion to Putin every day, even as he wages war in its own backyard. This has to end. But we should not simply swap Russian oil for Saudi oil. It’s time to greatly improve transport efficiency and turbocharge the electrification of transport to drive down our oil consumption,” William Todts, executive director of T&amp;E, said.

European countries are reliant on Russian oil for over a quarter of their crude oil.

Also read |&nbsp;<a href="https://www.wionews.com/world/chinas-xi-calls-for-maximum-restraint-offers-to-mediate-between-ukraine-and-russia-460498" hreflang="en">Xi calls for ‘restraint’, offers to mediate between Ukraine and Russia</a>

While some European countries like Slovakia are dependent on Russia for over 90 per cent of their oil, the continent’s dependence as a whole, while significant, is not significant, the analysis shows.

The report was released just days ahead of the announcement made by the&nbsp;US to ban Russian oil imports. Shell also said that it would shut down its Russian petrol stations and oil spot purchases.

UK prime minister Boris Johnson is also expected to make a statement later this week on reducing British imports of Russian gas. Apart from that, several European countries are working out alternatives to end reliance on Russian oil.

Also read |&nbsp;<a href="https://www.wionews.com/world/russia-demands-us-explain-biological-programme-in-ukraine-460552">Russia demands explanation from US for 'biological programme' in Ukraine</a>

Reacting to the US measures, Russia’s deputy prime minister Alexander Novak, said that any rejection of Russian oil would have “catastrophic consequences” and could send prices as high as $300 a barrel.

Europe imported more than 200m tonnes of oil from&nbsp;Russia&nbsp;each year between 2004 and 2017, even increasing its purchases in the two years after Russia seized Crimea in 2014.

(With inputs from agencies)

If a recent study is to be believed, European countries are making oil payments amounting to $285 million (£217 million) every day to Russia, which is then helping Putin to fund his war against Ukraine.

If a recent study is to be believed, European countries are making oil payments amounting to $285 million (£217 million) every day to Russia, which is then helping Putin to fund his war against Ukraine. New analysis by the Transport & Environment (T&E) thinktank estimates that Russia received $104bn from its crude, petrol and diesel exports to Europe and UK last year, more than twice the $43bn it took from gas shipments. “Europe is sending over a quarter of a billion to Putin every day, even as he wages war in its own backyard. This has to end. But we should not simply swap Russian oil for Saudi oil. It’s time to greatly improve transport efficiency and turbocharge the electrification of transport to drive down our oil consumption,” William Todts, executive director of T&E, said. European countries are reliant on Russian oil for over a quarter of their crude oil. Also read | Xi calls for ‘restraint’, offers to mediate between Ukraine and Russia While some European countries like Slovakia are dependent on Russia for over 90 per cent of their oil, the continent’s dependence as a whole, while significant, is not significant, the analysis shows. The report was released just days ahead of the announcement made by the US to ban Russian oil imports. Shell also said that it would shut down its Russian petrol stations and oil spot purchases. UK prime minister Boris Johnson is also expected to make a statement later this week on reducing British imports of Russian gas. Apart from that, several European countries are working out alternatives to end reliance on Russian oil. Also read | Russia demands explanation from US for 'biological programme' in Ukraine Reacting to the US measures, Russia’s deputy prime minister Alexander Novak, said that any rejection of Russian oil would have “catastrophic consequences” and could send prices as high as $300 a barrel. Europe imported more than 200m tonnes of oil from Russia each year between 2004 and 2017, even increasing its purchases in the two years after Russia seized Crimea in 2014. (With inputs from agencies)

Putin's war on Ukraine being bolstered by oil payments from Europe: Report

A week after a chorus of Western executives from Exxon Mobil, BP, Shell and other companies denounced Moscow’s violent onslaught in Ukraine and pledged to pull their companies out of Russian ventures, it appears the turbulence for Russia’s energy industry has only begun.

For the oil companies, three decades of carefully nurturing investments in what was always a difficult political environment is poised to quickly go by the boards. But the high point of Western involvement in Russia passed years ago, pushed along in part by outrage over Moscow’s annexation of Crimea in 2014.

The Russian oil industry, though, is likely to experience a wrenching reworking about how it does business in the coming weeks, months and even years. In the short term, this painful reckoning will come not so much because blue-chip oil companies are leaving but because Russian oil and gas have suddenly become toxic to many buyers.

On Tuesday, President Joe Biden plans to announce a ban on Russian oil imports to the United States, a move aimed at further penalizing Russia. Earlier in the day, Shell, Europe’s largest oil company, said it would stop buying the country’s oil and gas and “withdraw from its involvement in all Russian hydrocarbons.”

Until the invasion, Russian oil was a critical fuel in Europe and other markets, including the United States, where it made up about 7% of imports. Now the Russian crude known as Urals is being sold either at steep discounts to Brent crude, the international bench mark, or not at all. Beyond the United States, other countries are considering whether to impose embargoes on Russian energy imports.

The question that the Russian industry immediately faces is whether to throttle back production. Russia has been producing about 10 per cent&nbsp;of the world’s oil supplies.

“There is no reason to produce more oil if you cannot sell it,” said Tatiana Mitrova, an expert on the Russian industry and a fellow at the Columbia Center on Global Energy Studies.

Russian companies will be shopping for new buyers in Asia and other regions where the outrage over Ukraine is less pronounced. Mitrova said that over time, “there will be a massive orientation of oil and gas flows from European markets, first of all to China.”

Mitrova said Russia would accelerate expansion of existing oil and gas pipelines to China.

In the longer term, though, the future of the Russian industry, which bankrolls a large portion of the government budget, has turned cloudy. China, for instance, is a hard bargainer that pays only a fraction of the price for Russian natural gas that customers in rich European countries like Germany and Italy are now paying.

And the output of the vast West Siberian oil fields and other older operations that have sustained Russia as a world-leading oil producer for decades is in decline.

New fields being developed by Russia around the Arctic are “notable for their harsh operating conditions and higher costs,” according to a recent study by Energy Aspects, a research firm.

In the past, Western companies have taken on difficult projects like offshore drilling and liquefied natural gas, or LNG, development while leaving the more plain-vanilla undertakings to Russian competitors.

Where the capital and know-how for these projects will come from is now open to question. The most high-profile of these developments, Vostok, which would sprawl across a vast northern region, “could be disrupted as U.S. and EU sanctions place growing pressure” on the Russian industry, the report said.

On March 2, Trafigura, a Singapore-based trading company that is financing part of Vostok, which is led by Rosneft, the state-controlled oil company, said it was “reviewing the options” regarding its 10%, 1.5 billion-euro shareholding in Vostok Oil, a vehicle for some of these developments.

Vostok, a North Sea-size group of projects, may be Russia’s hope for the coming years, but Mitrova and other specialists say the Russian industry could probably keep plugging along for some time even after the large companies have sold or otherwise disposed of their investments.

Of course, when the hundreds of Western technical experts and managers based in Russia leave, they will be missed, and the Russian industry could develop headaches trying to find high-tech spare parts and software updates.

Still, ventures involving Western companies account for only about 15% of Russian oil production, Mitrova figures. Russia has a large oil and gas industry with trained personnel who can operate most facilities, analysts say.

“It is very easy to find Russian technical people to work on these projects,” said Serkan Sahin, an analyst who follows Russian oil at Energy Aspects.

Well before the invasion of Ukraine, Western companies had largely stopped seeing Russia as a crucial part of their future.

In 2018, Exxon Mobil was forced to pull out of its most promising Russia venture, drilling in the Arctic, because of sanctions imposed after Russia annexed Crimea. Exxon announced last week that it would wind down its involvement in a quarter-century-old oil and gas project on Sakhalin Island in the Russian Far East. Shell is also on Sakhalin, where it is a minority shareholder in a liquefied natural gas venture, and it, too, said it would exit the investment.

BP has also been slowly exiting Russia. In 2013, it gave up on a joint venture called TNK-BP, which it had formed with a group of oligarchs 10 years earlier, selling it to Rosneft for $12.5 billion in cash and a nearly 20% stake that it was required to take in the state-controlled company.

The Rosneft holding was, until recently, too valuable to walk away from (BP pegged it at $14 billion at the end of 2021) but also increasingly uncomfortable for a Western giant steering away from oil, and its investors.

“I think it was an easy decision to make,” said Oswald Clint, an analyst at Bernstein, a research firm.

The glaring exception is TotalEnergies, the French company, which continued to invest in giant liquefied natural gas projects in the Russian Arctic after the Crimea sanctions were imposed.

TotalEnergies also owns nearly one-fifth of Novatek, a Russian natural gas producer that is the main owner of the Arctic installations. TotalEnergies said recently that it would not invest in new projects in Russia, but it seems to be digging in on the LNG ventures — one of which is not expected to start producing until 2023.

There is of course the question of whether the oil companies will really leave. They have not sold anything yet, and if Vladimir Putin, the Russian president, decided to stop the war and was rehabilitated, they might be persuaded to change their minds.

On the other hand, there is little reason to think that they would make announcements involving billions of dollars of investments without carefully considering the consequences. Putin and his associates follow the oil industry closely and are unlikely to look kindly on companies and executives that abandoned him at one of his most difficult moments.

A week after a chorus of Western executives from Exxon Mobil, BP, Shell and other companies denounced Moscow’s violent onslaught in Ukraine and pledged to pull their companies out of Russian ventures, it appears the turbulence for Russia’s energy industry has only begun.

A week after a chorus of Western executives from Exxon Mobil, BP, Shell and other companies denounced Moscow’s violent onslaught in Ukraine and pledged to pull their companies out of Russian ventures, it appears the turbulence for Russia’s energy industry has only begun. For the oil companies, three decades of carefully nurturing investments in what was always a difficult political environment is poised to quickly go by the boards. But the high point of Western involvement in Russia passed years ago, pushed along in part by outrage over Moscow’s annexation of Crimea in 2014. The Russian oil industry, though, is likely to experience a wrenching reworking about how it does business in the coming weeks, months and even years. In the short term, this painful reckoning will come not so much because blue-chip oil companies are leaving but because Russian oil and gas have suddenly become toxic to many buyers. On Tuesday, President Joe Biden plans to announce a ban on Russian oil imports to the United States, a move aimed at further penalizing Russia. Earlier in the day, Shell, Europe’s largest oil company, said it would stop buying the country’s oil and gas and “withdraw from its involvement in all Russian hydrocarbons.” Until the invasion, Russian oil was a critical fuel in Europe and other markets, including the United States, where it made up about 7% of imports. Now the Russian crude known as Urals is being sold either at steep discounts to Brent crude, the international bench mark, or not at all. Beyond the United States, other countries are considering whether to impose embargoes on Russian energy imports. The question that the Russian industry immediately faces is whether to throttle back production. Russia has been producing about 10 per cent of the world’s oil supplies. “There is no reason to produce more oil if you cannot sell it,” said Tatiana Mitrova, an expert on the Russian industry and a fellow at the Columbia Center on Global Energy Studies. Russian companies will be shopping for new buyers in Asia and other regions where the outrage over Ukraine is less pronounced. Mitrova said that over time, “there will be a massive orientation of oil and gas flows from European markets, first of all to China.” Mitrova said Russia would accelerate expansion of existing oil and gas pipelines to China. In the longer term, though, the future of the Russian industry, which bankrolls a large portion of the government budget, has turned cloudy. China, for instance, is a hard bargainer that pays only a fraction of the price for Russian natural gas that customers in rich European countries like Germany and Italy are now paying. And the output of the vast West Siberian oil fields and other older operations that have sustained Russia as a world-leading oil producer for decades is in decline. New fields being developed by Russia around the Arctic are “notable for their harsh operating conditions and higher costs,” according to a recent study by Energy Aspects, a research firm. In the past, Western companies have taken on difficult projects like offshore drilling and liquefied natural gas, or LNG, development while leaving the more plain-vanilla undertakings to Russian competitors. Where the capital and know-how for these projects will come from is now open to question. The most high-profile of these developments, Vostok, which would sprawl across a vast northern region, “could be disrupted as U.S. and EU sanctions place growing pressure” on the Russian industry, the report said. On March 2, Trafigura, a Singapore-based trading company that is financing part of Vostok, which is led by Rosneft, the state-controlled oil company, said it was “reviewing the options” regarding its 10%, 1.5 billion-euro shareholding in Vostok Oil, a vehicle for some of these developments. Vostok, a North Sea-size group of projects, may be Russia’s hope for the coming years, but Mitrova and other specialists say the Russian industry could probably keep plugging along for some time even after the large companies have sold or otherwise disposed of their investments. Of course, when the hundreds of Western technical experts and managers based in Russia leave, they will be missed, and the Russian industry could develop headaches trying to find high-tech spare parts and software updates. Still, ventures involving Western companies account for only about 15% of Russian oil production, Mitrova figures. Russia has a large oil and gas industry with trained personnel who can operate most facilities, analysts say. “It is very easy to find Russian technical people to work on these projects,” said Serkan Sahin, an analyst who follows Russian oil at Energy Aspects. Well before the invasion of Ukraine, Western companies had largely stopped seeing Russia as a crucial part of their future. In 2018, Exxon Mobil was forced to pull out of its most promising Russia venture, drilling in the Arctic, because of sanctions imposed after Russia annexed Crimea. Exxon announced last week that it would wind down its involvement in a quarter-century-old oil and gas project on Sakhalin Island in the Russian Far East. Shell is also on Sakhalin, where it is a minority shareholder in a liquefied natural gas venture, and it, too, said it would exit the investment. BP has also been slowly exiting Russia. In 2013, it gave up on a joint venture called TNK-BP, which it had formed with a group of oligarchs 10 years earlier, selling it to Rosneft for $12.5 billion in cash and a nearly 20% stake that it was required to take in the state-controlled company. The Rosneft holding was, until recently, too valuable to walk away from (BP pegged it at $14 billion at the end of 2021) but also increasingly uncomfortable for a Western giant steering away from oil, and its investors. “I think it was an easy decision to make,” said Oswald Clint, an analyst at Bernstein, a research firm. The glaring exception is TotalEnergies, the French company, which continued to invest in giant liquefied natural gas projects in the Russian Arctic after the Crimea sanctions were imposed. TotalEnergies also owns nearly one-fifth of Novatek, a Russian natural gas producer that is the main owner of the Arctic installations. TotalEnergies said recently that it would not invest in new projects in Russia, but it seems to be digging in on the LNG ventures — one of which is not expected to start producing until 2023. There is of course the question of whether the oil companies will really leave. They have not sold anything yet, and if Vladimir Putin, the Russian president, decided to stop the war and was rehabilitated, they might be persuaded to change their minds. On the other hand, there is little reason to think that they would make announcements involving billions of dollars of investments without carefully considering the consequences. Putin and his associates follow the oil industry closely and are unlikely to look kindly on companies and executives that abandoned him at one of his most difficult moments.

Future turns dark for Russia’s oil industry

As the war against Ukraine continues,&nbsp;President Joe Biden announced on Tuesday that his administration is banning Russian oil imports.

The US president said the decision to ban Russian&nbsp;oil&nbsp;imports was done "in close consultation"&nbsp;with allies.

<a href="https://www.wionews.com/world/just-how-crucial-is-russian-gas-for-west-in-spite-of-its-invasion-of-ukraine-460314">Also Read:&nbsp;Just how crucial is Russian gas for West, in spite of its invasion of Ukraine</a>

Russia reportedly accounts for less than ten per cent of US imports of oil and petroleum products, however, the US has already been witnessing surging oil prices in the past few days.

"We're banning all imports of Russian&nbsp;oil&nbsp;and&nbsp;gas&nbsp;and energy. That means Russian&nbsp;oil&nbsp;will no longer be acceptable at US ports and the American people will deal another powerful blow to (President Vladimir) Putin," Biden said in a statement from the White House.

"Russia may&nbsp;continue to grind&nbsp;out&nbsp;its&nbsp;advance&nbsp;at a horrible price but this much is already clear -&nbsp;Ukraine will never be a victory for Putin," Biden said, adding,&nbsp;"Putin may be able to take a city, but he'll never be able to hold the country."

Meanwhile, Brent crude futures touched $130 on Tuesday with oil prices surging nearly 30 per cent in the US amid the Russian invasion of Ukraine. Russia is the world's top exporter of crude and oil products with Biden's announcement expected to drive up crude prices.

Watch:&nbsp;Russia threatens Europe's gas supply

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International buyers had earlier begun to shun Russian oil as the US and its allies announced a wave of sanctions due to the high cost of transportation.

On Tuesday, energy giant Shell said it will not be involved in Russian gas and oil and will halt purchase of its crude oil.

<a href="https://www.wionews.com/world/what-alternatives-can-russia-use-as-allies-deploy-financial-nuclear-weapon-460269">Also Read:&nbsp;Here are the alternatives Russia can use as allies deploy 'financial nuclear weapon'</a>

"Shell today announced its intent to withdraw from its involvement in all Russian hydrocarbons, including crude oil, petroleum products, gas and liquefied natural gas in a phased manner, aligned with new (UK) government guidance," Shell said.

"As an immediate first step, the company will stop all spot purchases of Russian crude oil," it added while announcing that it was also stopping service stations, aviation fuel and lubricants operations in Russia.

(With inputs from Agencies)

As the war against Ukraine continues, President Joe Biden announced on Tuesday that his administration is banning Russian oil imports. The US president said the decision to ban Russian oil imports was done "in close consultation" with allies.

As the war against Ukraine continues, President Joe Biden announced on Tuesday that his administration is banning Russian oil imports. The US president said the decision to ban Russian oil imports was done "in close consultation" with allies. Also Read: Just how crucial is Russian gas for West, in spite of its invasion of Ukraine Russia reportedly accounts for less than ten per cent of US imports of oil and petroleum products, however, the US has already been witnessing surging oil prices in the past few days. "We're banning all imports of Russian oil and gas and energy. That means Russian oil will no longer be acceptable at US ports and the American people will deal another powerful blow to (President Vladimir) Putin," Biden said in a statement from the White House. "Russia may continue to grind out its advance at a horrible price but this much is already clear - Ukraine will never be a victory for Putin," Biden said, adding, "Putin may be able to take a city, but he'll never be able to hold the country." Meanwhile, Brent crude futures touched $130 on Tuesday with oil prices surging nearly 30 per cent in the US amid the Russian invasion of Ukraine. Russia is the world's top exporter of crude and oil products with Biden's announcement expected to drive up crude prices. Watch: Russia threatens Europe's gas supply International buyers had earlier begun to shun Russian oil as the US and its allies announced a wave of sanctions due to the high cost of transportation. On Tuesday, energy giant Shell said it will not be involved in Russian gas and oil and will halt purchase of its crude oil. Also Read: Here are the alternatives Russia can use as allies deploy 'financial nuclear weapon' "Shell today announced its intent to withdraw from its involvement in all Russian hydrocarbons, including crude oil, petroleum products, gas and liquefied natural gas in a phased manner, aligned with new (UK) government guidance," Shell said. "As an immediate first step, the company will stop all spot purchases of Russian crude oil," it added while announcing that it was also stopping service stations, aviation fuel and lubricants operations in Russia. (With inputs from Agencies)

President Biden bans Russian oil imports