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BUSINESS EYE NOVEMBER 25, 2022 | The Indian Eye 36

Driven by petroleum sales,

Russia become India’s fifth biggest

trading partner

Minister for Petroleum and Natural Gas Hardeep Singh Puri says the government feels no

pressure on an impending price cap on Russian crude oil proposed by G-7

OUR BUREAU
New Delhi/Moscow
riven largely by a surge in oil
imports, Russia has emerged
Das India’s fifth largest trad-
ing partner during April-September,
jumping from the 25th place at the
end of the last financial year, official
data showed.
The large shipments of oil and
fertilizer have also meant that the
trade deficit with Russia, pegged at
just over $20 billion during the first
half of the current financial year, is
next only to China’s $44.6 billion.
In fact, among India’s top five
trading partners, China and Russia
are the only countries where exports
have taken a beating during the first
half of the year, when overall exports
had grown by 17%.
The US and China have re-
tained the top two spots (see graph-
ic). Trade with the US rose 20% due
to an increase in exports (15% to
$41.5 billion) and imports (29% to
$26 billion). In case of China, there The value of Russian oil shipped to India has soared 8.3 times to nearly $18 billion, while fertilizer saw an even higher jump
has been a decrease in exports of
copper, cotton and ores among the which emerged as the biggest source sure. I have no fear or anxiety. The oil is purchased below or at the price
major commodities, resulting in In- for Indian crude in October, despite market will deal with the logistics cap. As per reports, G7 nations are
dia’s shipments to its neighbor falling pressure from the US and other issue if it arises. Whatever happens, still fine-tuning the details of the
36.6% to $7.8 billion, while imports countries to stop imports after the will be dealt with,” Puri responded price cap ahead of the December 5
have shot up 23.6% to over $52.4 bil- war in Ukraine started in February. to reporters on being asked about timeline.
lion during this period. Foreign minister S Jaishankar the price cap mechanism on Russian Puri had last month in Washing-
Disaggregated data released by and oil minister Hardeep Puri have crude oil proposed by G7 nations ton after his bilateral meeting with
the commerce department showed maintained that India will keep giv- starting December 5. Minister Puri US energy secretary Jennifer Gran-
that India’s exports to Russia fell ing top priority to securing its inter- made the remarks at a press confer- holm stated that the Indian govern-
19% to $1.3 billion during the first ests, even as FM Nirmala Sitharaman ence on the sidelines of World LPG ment has a moral duty to provide en-
half of the current financial year. In has said that purchase of Russian Week 2022 held in Greater Noida on ergy to its citizens and it will continue
contrast, imports surged five times crude has helped manage inflation. Wednesday. to buy oil from wherever it has to.
from $4.2 billion during April-Sep- Union Minister for Petroleum On September 2, the G7 coun- In an interview with CNN, the
tember 2021 to $21.3 billion in the and Natural Gas Hardeep Singh tries agreed to future implemen- minister had also reiterated that In-
first half of FY23. During this period, Puri has said that the incumbent gov- tation of a price cap on oil exports dia is under no moral conflict to stop
the value of Russian oil shipped to ernment feels no pressure on an im- from Russia to limit its largest source buying oil from Russia. Puri also de-
the country soared 8.3 times to near- pending price cap on Russian crude of income. fended India’s purchases stating that
ly $18 billion, while fertilizer saw an oil proposed by the G-7, the group of According to the G7 decision, India only bought 0.2 per cent, not 2
even higher jump. seven advanced countries. transportation services such as ship- per cent of Russian oil and it buys in
The government has let oil com- “We will see it when it happens. ping and insurance will be allowed a quarter what Europe buys in one
panies buy more crude from Russia, The Modi government feels no pres- for oil exports from Russia only if afternoon.

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