Rosneft ensures steady supply of Russian oil to India amid war in West Asia | Today’s news
NEW DELHI: India and China will continue to receive steady supplies of Russian oil despite global instability and supply chain disruptions, according to remarks by Igor Sechin, CEO of Russia’s state-backed energy company Rosneft, published by the Russian Federation’s Presidential Commission on Strategic Development of the Fuel and Energy Sector and Environmental Safety.
Sechin, who is also the commission’s executive secretary, described India as a strategic partner at the St. Petersburg International Economic Forum in Russia on Saturday, saying its economy is among the key drivers of growth in global energy consumption.
“Russia cannot be excluded from global supply chains. Against the background 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 a statement. “Russian oil supplies bring tangible economic benefits to our partners. As of April 2022, their combined value to China and India exceeded $40 billion.”
Russia has become India’s main oil supplier in 2022 after offering deep discounts.
Citing data from the International Energy Agency, Sechin said India’s oil consumption will reach nearly 8 million barrels per 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 Asian conflict on India, Sechin said: “The conflict in the Strait of Hormuz, together with new risks, will unfortunately have a negative impact on meeting the needs of the Indian economy. But it is also an incentive to find long-term solutions in the field of energy security.”
West Asia supplied 60–70% of India’s oil needs before the war began on 28 February. These supplies have since been severely disrupted by the conflict and blockade.
India further diversified its imports and increased purchases from Russia, Venezuela and African producers.
The blockade of the Strait of Hormuz has cut off about 20% of the world’s oil supply.
“The current development of the conflict in the Middle East has caused a global crisis. In addition to oil and gas, a significant volume of exports of other goods, such as fertilizers, pass through the Strait of Hormuz. The interruption of supplies together with the lack of strategic reserves in these markets increases the risk of a global food crisis,” Sečin said.
Describing the Hormuz crisis as a precedent, he said: “The same threat may now loom over other global logistics barriers: the Straits of Malacca, Bab el-Mandeb and Gibraltar, the Cape of Good Hope, the Denmark and Turkey Straits and the Suez and Panama Canals, all of which are key to the global energy sector.”
