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Increase in Russian crude oil imports is part of govt strategy to fight inflation: FM Sitharaman

Finance Minister Nirmala Sitharaman defended India's decision to increase Russian oil imports amid Western sanctions on Moscow. She said the move is part of a government strategy to fight inflation

ET Now Digital

Updated Sep 8, 2022, 18:52 IST

Union Finance Minister Nirmala Sitharaman

Photo : ET Now Digital

Finance Minister Nirmala Sitharaman on Thursday said India increased imports of discounted Russian crude oil amid western sanctions on Moscow as part of the government strategy to rein in high inflation at home, adding, that other nations are taking similar steps.

"In a situation where global prices were going beyond anyone's affordability, at that stage to take a very strong political decision, I respect the Prime Minister for his courage on this to get it from Russia because they are ready to give it to you at discount. And how speedily did we manage to do it," she said.

It is to be noted that crude oil is a major constituent of India’s overall import basket, having significant repercussions for the Indian economy— with direct impact on everything from fiscal deficit to domestic consumer prices.

Speaking at a seminar organised by a think tank Icrier, FM Sitharaman further added that India’s crude oil imports from Russia increased by 12-13% of imports from other sources since February from about 2% before.

Some countries such as India entered into bilateral agreements with Russia for oil imports after West imposed sanctions on Moscow for invading Ukraine.

FM further added that India is the world’s third largest consumer and importer of crude oil, and PM Modi deserves the credit for balancing trade and other ties with various countries.

"I give credit to the statesmanship of the Prime Minister to make sure that we did keep our relationship with all countries but yet manage to get the Russian crude... Sanctions, sanctions but countries (including Japan and Italy, among others) are finding their own way to get that Russian fuel (crude, gas) That also is a part of inflation management," the FM added.

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