India Asks US: Allow Iran Oil to Cut Russian Crude Imports — Here’s Why

Indian officials have reiterated their demand that the US ease sanctions on Iranian and Venezuelan crude if it expects New Delhi to cut back Russian oil imports. The request was made during meetings with American counterparts by an Indian delegation visiting Washington this week, according to a person familiar with the discussions.

Risk of Global Price Spike

Officials have reportedly stressed that restricting Indian refiners’ access to supplies from Russia, Iran, and Venezuela simultaneously could lead to a significant spike in global crude prices. "Cutting off all three sources would destabilise the market," said people familiar with the talks, as mentioned in the report by bloomberg. 

India Maintains Russian Oil Flows Despite Tariffs

The trip to Washington came days after the US imposed steep tariffs on India as punishment for its continued oil trade with Russia. Despite the levies, Indian refiners have continued importing Russian crude, albeit at lower volumes, to meet the country’s energy needs.

Piyush Goyal on Energy Security

Commerce Minister Piyush Goyal, speaking in New York this week, said India aimed to deepen energy ties with the US. “Our energy security goals will have a very high element of US involvement,” Goyal stated, signalling India’s openness to increase purchases of American oil and gas.

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Discounted Oil Key to India’s Economy

India meets almost 90% of its crude needs through imports. Russian barrels, offered at steep discounts after Moscow was shunned by several global buyers following the war in Ukraine, have been crucial in easing India’s import bill. Iranian and Venezuelan crude would likely offer similar pricing advantages.

(With Inputs From Bloomberg)