India will continue prioritizing the energy security of its population despite attempts by the United States to squeeze Russian oil and gas exports, many of which go to India, the country’s Foreign Ministry said today. It also warned that any move by Washington that affects energy security concerns could sour bilateral ties.

“The Indian side has also made clear its determination to take all necessary measures to protect its trade and economic interests,” the Foreign Ministry said, as quoted by Reuters. The latest sanction bill stipulates that tariffs of as much as 100% would be imposed on importers of Russian energy commodities.

The statement follows yesterday’s passage of the latest anti-Russian sanction bill, which also includes tariffs for countries that continue to do business with Russia. The goal appears to be to stifle Russia’s export revenues to force it to end the war in Ukraine. So far, sanctions have consistently failed to achieve the desired result.

India is one of Russia’s biggest oil buyers. In August, crude oil imports from Russia accounted for over 50% of India’s total import volumes. This was the highest share of Russian oil in India’s crude import mix. Russia exported crude at a rate of some 2.47 million barrels daily to India last month, which was a 62.4% surge from a year ago and represented a 50.83% share of total oil imports into the world’s third-largest oil buyer.

India was already the second-biggest buyer of Russian crude before the war in the Middle East started, taking advantage of the discount that Western sanctions prompted. Now, Russian crude is fetching premiums due to the choking of supply out of the Middle East. Buying continues strong for lack of cheaper alternatives.

India has a close diplomatic relationship with Russia, but it is also seen as a key ally of the United States in Asia.

By Irina Slav for Oilprice.com