India prevents global crisis by purchasing Russian oil, keeps markets stable

New Delhi: As allegations fly thick and fast over India extending a financial lifeline to Russia and becoming a laundering hub, the reality is that by purchasing Russian energy, New Delhi has prevented a global crisis by keeping global markets stable and inflation under control for itself and for the world.

Russia supplies nearly 10 per cent of world oil. If India stopped buying, crude could hit $200 a barrel. By keeping oil flowing, India stabilised markets and helped global citizens. US Treasury Secretary Janet Yellen and others have already praised India’s role towards this.

India is not using US dollars from trade to buy Russian oil as purchases are routed through traders in third countries and settled in currencies like AED.

At no point did the US government ask India to stop buying. India’s trade is fully legitimate and within G7 and EU price-cap rules.

There is no black market either. Russian oil is not sanctioned like Iranian or Venezuelan oil. It is sold under a price-cap system designed by the West to prevent profiteering. If the US wanted to ban Russian oil, it would have sanctioned it. It did not because it needs Russian oil in the market.

India also cut fuel prices for its citizens even as global oil spiked to $137 a barrel. State-run oil firms took losses of Rs 21,000 crore, while government taxed exports to prevent profiteering. India’s imports prevented a global spike and cushioned inflation for everyone.

The country has been the world’s 4th-largest refiner for decades. Refining crude and exporting fuels is how the global system works. After banning Russian crude, Europe itself relied on Indian diesel and jet fuel. That is stabilisation, not laundering.

Moreover, about 70 per cent of refined fuels stay in India to meet domestic demand. One Reliance refinery is export-focused since 2006, long before this war. Exports of refined fuels have actually declined as domestic use has risen. Crude and products are fungible, they follow market flows.

The trade deficit argument is hollow too. The US runs far larger deficits with China, the EU and Mexico. India’s $50 billion deficit is small in comparison. Meanwhile India buys billions in US aircraft, LNG, defence equipment and technology.

Is India freeloading on US defence? The answer is no as India is co-producing jet engines with GE, buying MQ-9 drones, and deepening QUAD and Indo-Pacific defence ties. India is the only major power actively countering China militarily in Asia. That is a direct strategic gain for the US.

Peace cannot come from scapegoating. India has called for diplomacy at the UN. Meanwhile Europe still buys Russian gas and the US still imports Russian uranium. India acted responsibly, followed global frameworks, and prevented prices from spiralling.

The truth is: India did not bankroll Russia. Scapegoating India may serve politics, but it does not serve facts.

IANS