Finance Minister defends Russian oil purchase; promises relief for sectors hit by US tariffs
Nirmala Sitharaman said India's decision to continue buying Russian oil is based on national interest, stating that GST reforms will help offset tariff-related concerns
Union Finance Minister Nirmala Sitharaman on Friday (September 5) reiterated that India will continue to purchase Russian oil, emphasising that such decisions will be dictated solely by national interest.
She further noted that reforms like the Goods and Services Tax (GST) have helped offset many tariff-related concerns.
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Support for tariff-hit sectors
"Whether it is Russian oil or anything else, we will take a call based on what suits our needs in terms of rates, logistics, or whatever. Where we buy our oil from, especially it being a big ticket foreign exchange-related item, is a call we will take based on what suits us best. So, we will undoubtedly be buying Russian oil," Sitharaman told Network18.
The Finance Minister underlined that crude oil accounts for the largest share of India’s import bill.
Assuring relief for industries hit by the 50 per cent US tariff, Sitharaman said, "We will come out with something to handhold those who have been hit. The package includes a variety of measures, and something is definitely coming to help them."
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'India has not broken rules'
Union Petroleum Minister Hardeep Singh Puri has also defended India’s Russian crude purchases, insisting that the country has followed international rules while helping to stabilise global oil markets since the Ukraine war began.
India’s increased imports from Moscow have drawn criticism in Washington, with White House trade adviser Peter Navarro accusing New Delhi of funding Russia’s "war machine" and even calling the Ukraine conflict "Modi’s war".
Puri, however, rejected the charge.
"Unlike Iranian or Venezuelan crude, Russian oil is sold under the G7-EU price-cap system that keeps flows steady while capping revenues. Every Indian purchase uses legal shipping, insurance, compliant traders and audited channels. India has not broken rules; on the contrary, our purchases prevented global prices from spiralling," he said on September 2.