Rosneft assures stable Russian oil supplies to India amid West Asia war
NEW DELHI: India and China will continue to receive stable Russian oil supplies despite global volatility and supply chain disruptions, according to remarks by Igor
NEW DELHI: India and China will continue to receive stable Russian oil supplies despite global volatility and supply chain disruptions, according to remarks by Igor Sechin, chief executive of Russian state-backed energy major Rosneft, released by the Russian Federation Presidential Commission for Strategic Development of the Fuel and Energy Sector and Environmental Security. Speaking at the St Petersburg International Economic Forum in Russia on Saturday, Sechin, who is also the commission's executive secretary, described India as a strategic partner and said its economy was among the key drivers of growth in global energy consumption.
“Russia cannot be excluded from global supply chains. Against the backdrop of recent developments in the global oil industry, Russia's economic partnership with China and India guarantees stable supplies to both countries,” Sechin said in the statement. “Russian oil supplies bring tangible economic benefits to our partners. Since April 2022, its combined value for China and India has exceeded $40 billion.” Russia became a top supplier of crude oil to India in 2022 after offering deep discounts. Citing International Energy Agency data, Sechin said India's oil consumption would reach almost 8 million barrels a day by 2035.
“This represents a 44% increase, while global demand is expected to grow by only 5%.” Speaking about the impact of the West Asia conflict on India, Sechin said, “The conflict in the Strait of Hormuz, along with new risks, will unfortunately have a negative impact on meeting the needs of the Indian economy. But this is also an incentive to seek long-term solutions in energy security.” West Asia supplied 60-70% of India's oil requirements before the war began on 28 February. Those supplies have since been severely disrupted by the conflict and the blockade.
India has diversified its imports further, increasing purchases from Russia, Venezuela and African producers. The blockade of the Strait of Hormuz has cut off about 20% of global oil supplies. “The current development of the conflict in the Middle East invited the global crisis. Besides oil and gas, a significant volume of exports of other goods, e.g. fertilizers, passes through the Strait of Hormuz. Supply disruptions, along with the lack of strategic reserves in these markets increase the risk of a global food crisis,” Sechin said.
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