Misri said that whether it is “the government or even our business, ultimately the national interest will be the guiding factor for us in our choices” on India’s energy imports.
At a Ministry of External Affairs (MEA) briefing on the visit of Seychelles President Patrick Herminie, who held talks with Prime Minister Narendra Modi earlier in the day, the External Affairs Minister was asked to clarify India’s position on imports of Russian oil in the context of the framework of the India-US Interim Trade Agreement. Misri’s comments come at a time when Commerce and Industry Minister Piyush Goyal claims that questions regarding Indian oil imports from Russia should be directed to the MEA.
Misri elaborated on Indian thinking on energy imports, noting that India is a net importer of oil and gas. “We are a developing economy. We need to be aware of the availability of our raw materials. When you are 80 to 85 percent dependent on imported raw materials, you naturally have to worry about the possibility of inflation due to energy costs. So it is not surprising that our top priority is to protect the interests of Indian consumers when it comes to energy, to ensure that they get enough energy at the right price and through reliable and safe supply,” he said.
Misri said India’s energy import policy is entirely driven by these objectives. “You would also have noted that the global economy has faced significant uncertainties in recent years that have had a major impact on the stability of global energy markets. India, and I imagine many countries in the world, if not every country, have a shared interest in ensuring stable energy prices and security of supply,” he said.
“I would like to underline that India is not only one of the largest energy consumers, but also plays an important role as a stabilizing factor in global energy markets, and that is one of the reasons why we import energy from multiple sources,” Misri said, adding that the key drivers of India’s energy policy are “adequate availability, fair prices and reliability of supply.”
The foreign minister said India’s energy import data shows that the country sources crude oil from dozens of countries. “We are not dependent on a single source for this, nor do we intend to be. And it is normal for the mix of sources to vary from time to time depending on objective market conditions,” he said.
Misri said India’s approach is to maintain multiple sources of supply and diversify them where necessary to ensure stability. “So the more diversified we are in this area, the safer we are,” he said.
He added that the actual procurement of oil is carried out by public and private sector oil companies. “They’re making decisions based on market conditions. They’re assessing availability at a given point in time, they’re assessing risk, they’re assessing costs in this process. And all of these companies also have internal accountability-related processes and fiduciary responsibilities. So there’s quite a complex matrix of things that these companies have to take into account at any given time,” he said, adding that these include important financial and logistical considerations.
“I expect that you will continue to see in this sector that business choices are made based on these considerations. What I can say with certainty and confidence is that, whether it is the government or even our companies, ultimately the national interest will be the guiding factor for us in our choices,” Misri said.
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