1.4 billion people first: India reaffirms 'supreme priority' over energy sourcing

New Delhi, Feb 5 (PTI) India on Thursday said ensuring the energy security of 1.4 billion Indians is its "supreme priority", an assertion that came days after US President Donald Trump claimed that New Delhi has agreed to stop buying Russian crude oil.

Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal said diversifying energy sourcing in keeping with market conditions and evolving global dynamics is at the core of India's strategy on energy procurement.

Following a phone conversation with Prime Minister Narendra Modi on Monday, Trump, besides announcing a trade deal between the two countries, said India had agreed to stop buying Russian oil and will buy more from the US and Venezuela.

"Insofar as India's energy sourcing is concerned, the government has stated publicly on several occasions that ensuring the energy security of 1.4 billion Indians is the supreme priority of the government," Jaiswal said at his weekly media briefing.

He was responding to a volley of questions on whether India will stop procuring crude oil from Russia as claimed by Trump.

"Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy to ensure this. All of India's actions are taken and will be taken with this in mind," Jaiswal said, without elaborating.

The MEA spokesperson said India remains open to exploring the commercial merits of any new crude supply options, including from Venezuela.

It is learnt that India is unlikely to completely stop buying Russian oil.

Diplomatic sources indicated that the Russia-Ukraine war is likely to come to an end soon and in such a scenario, there will be no hurdles in New Delhi's energy ties with Moscow.

India's purchase of Russian oil has become a thorny issue in the ties between New Delhi and Washington, with many American officials alleging that it is fuelling Moscow's war machine against Ukraine.

New Delhi has rejected the charges, maintaining that its energy procurement is driven by national interests and market dynamics.

The relations between New Delhi and Washington saw a major downturn after Trump imposed 50 per cent tariff on Indian goods, including 25 per cent levies for New Delhi's procurement of Russian oil.

Following the Trump-Modi conversation, both sides announced a reduction of the US tariffs on Indian goods to 18 per cent from 50 per cent.

To a question on buying crude oil from Venezuela, Jaiswal said the country has been a long-standing partner of India in the energy sector.

"Venezuela has been a long-standing partner of India in the energy sector, encompassing trade and investments. The country was among India's major sources of crude oil until financial year 2019-20, which were discontinued following sanctions," he said.

"Imports from Venezuela resumed in FY 2023-24, before being halted again due to the re-imposition of sanctions," Jaiswal said. He said Indian oil public sector companies have had a partnership with Venezuela's National Oil Company, PdVSA, and have been maintaining a presence in Venezuela since 2008.

"Consistent with India's approach to energy security, India remains open to exploring the commercial merits of any new crude supply options, including from Venezuela," he said.

On US tariffs on Indian goods, Jaiswal referred to Modi's comments following the conversation with Trump.

"The prime minister noted that Made in India products will now be exported to the US at a reduced tariff of 18 per cent," he said.

"This trade agreement will give a major boost to India's export, labour intensive industries, job creation, growth and bring prosperity to our people. The US side has also clarified that the final figure of tariff is 18 per cent," he said. PTI MPB RC