Indian officials have approached the administration of U.S. President Donald Trump requesting permission to purchase oil from sanctioned Iran and Venezuela in order to reduce imports of Russian oil.
Source: Bukvy
The Indian delegation visiting the U.S. this week reiterated this request during meetings with American officials, Bloomberg reported. Indian representatives emphasized that simultaneously stopping oil supplies from Russia, Iran, and Venezuela could trigger a spike in global prices.
India halted purchases of Iranian oil in 2019, and the country’s largest private refiner — Reliance Industries Ltd. — stopped buying Venezuelan oil this year due to increased U.S. sanctions.
Refineries can increase purchases from the Middle East, but it will be more expensive. In July, Indian refineries paid an average of $68.90 per barrel for Russian oil, compared to $77.50 per barrel from Saudi Arabia and $74.20 per barrel from the U.S.
India is the largest buyer of Russian oil delivered by tankers, while China is the largest importer overall, including pipeline supplies.