US sanctions on Russia should not affect the oil trade in Moscow with India, and Russia’s Deputy Energy Minister Pavel Sorokin said on Tuesday that it is very early to assess the impact of the latest restrictions.
India is still the largest buyer of Russian oil saving to the sea after Western countries imposed sanctions on Moscow after its invasion of Ukraine in 2022. Last month, the United States presented new sanctions targeting the oil supply chain in Russia, which led to high rates of cargo shipping and some buyers in China and India They avoid approved ships.
“Our relationship with India depends on economic pragmatism,” Sorokin said at the Indian Energy Week conference. “We believe that the energy trade should not be hindered by any policy.”
Sorokin stated that it would take more time to determine the full impact of the latest American measures. “You cannot judge the situation on the basis of a few weeks of data. More time is needed to assess these things, but we believe that constructive relationships will remain successful.”
Oil supplies in Russia fell to India in December and January compared to the previous six months. Indian Oil Corp (IOC), the country’s largest refinery, has indicated a possible decrease in Russian oil imports in this fiscal year due to the latest US sanctions.
The head of the International Olympic Committee of Arrows said on Tuesday that the company is buying Russian crude without involving punishment entities. Sorokin described the sanctions illegal and said they had disrupted the global economy.
He said: “Tens of billions of dollars have been transferred from the developing economies, and the cost of capital for everyone has increased in this industry.” “The sanctions have added an element of uncertainty in a sector like energy where projects have very long time.”
Sorokin added that Russia has the technology necessary to develop its resources and will remain a major player in the global oil market.
