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The Minister of State for Petroleum and Natural Gas Rameshwar Teli said on Monday that oil PSUs have no contract or proposal from Russia for purchasing crude oil in Indian rupee. During the April-January period of FY22, India imported less than 1 per cent of its annual crude oil requirement from Russia.
“At present, oil public sector undertakings (PSUs) neither have any contract nor is any such proposal under consideration from Russia or any other country for purchase of crude oil in rupees,” Teli said in a written response in the Rajya Sabha.
In response to another question in the Upper House on March 24, the Minister said the government is closely monitoring global energy markets as well as potential energy supply disruptions as a fallout of the evolving geopolitical situation. The government is ready to take all appropriate action, as deemed fit, for mitigating market volatility and calming the rise in crude oil prices.
“Further, to ensure security of crude supplies and mitigate the risk of dependence on crude oil from a single region, Oil PSUs have diversified their crude basket and are procuring crude from countries located at various geographical locations viz. Middle East, Africa, North America, South America etc,” Teli added.
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India pays for Russian LNG imports in US dollar
An LNG shipload was received on March 25 and its payment will be due in early AprilA week earlier, on March 21, the Minister had informed the Rajya Sabha that oil and gas PSUs have imported less than 1 per cent of their total crude oil import from Russia in 2021-22 (till January).
Alternative payment mechanism
Sources said that India has been examining alternative payment mechanisms to the US dollar and euro for making crude oil payments to traders. The country is examining currencies such as the yuan and the dirham as a reference in case the government decides to activate the rupee-rouble trade mechanism. The RBI, MEA and Department of Financial Services have been looking into the matter.
The rupee-rouble trade mechanism will allow Indian exporters to be paid in rupees for their exports to Russia instead of dollars or euros amid sanctions against Moscow.
Government sources said that at present India is waiting and watching the global scenario as markets are very volatile and it would be better to wait out and analyse the events before committing to any alternative. “Before some sense and stability comes into the market, it would be better to wait out the current speculation in the market. See the payment mode, freight, marine insurance and crude grades can be ironed out once a mechanism has been firmed up,” a senior official explained.
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