Russia offers India help in leasing and building large-capacity ships to overcome G7's oil price cap
Moscow, (PTI): Russia has welcomed India's decision to not support the price cap on Russian oil announced by G7 and its allies and offered it cooperation on leasing and building large-capacity ships to overcome the ban on insurance services and tanker chartering in the European Union and Britain to continue buying discounted oil.
The offer came as Russian Deputy Prime Minister Alexander Novak held a meeting with the Indian Ambassador to Moscow, Pavan Kapoor, on Friday.
"The Deputy Prime Minister welcomed India's decision not to support the price cap on Russian oil, which was imposed on December 5 by the G7 countries and their allies," the Russian Foreign Ministry said in a statement.
India's appetite for Russian oil has swelled ever since it started trading on discount as the West shunned it to punish Moscow for its invasion of Ukraine.
Novak noted that even amid the energy crisis, Russia is responsibly fulfilling its contractual obligations for the supply of energy resources, diversifying energy exports to the countries in the East and South.
To avoid dependency on the ban on insurance services and tanker chartering in the European Union and Britain, Novak offered India cooperation on leasing and building large-capacity ships, the statement said.
The Indian government has been vehemently defending its oil trade with Russia, saying it has to source oil from where it is the cheapest.
The imports in November were made ahead of a price cap agreed by the EU on Russian seaborne oil.
But, the government has indicated that oil companies will continue to buy oil from Russia outside the price cap.
External Affairs Minister S Jaishankar on December 7 told the Rajya Sabha that Indian refiners will continue to look for the best deals in the interest of the country.
"We do not ask our companies to buy Russian oil. We ask our companies to buy oil (based on) what is the best option that they can get. Now, it depends on what the market throws up," he had said while replying to clarifications sought by MPs on his suo moto statement on foreign policy.
The companies will go after sources that are more competitive, Jaishankar added.
"Please do understand it's not just we buy oil from one country. We buy oil from multiple sources, but it is a sensible policy to go where we get the best deal in the interests of the Indian people, and that is exactly what we are trying to do," he said.
The executive body of the European Union has asked its 27 member countries to cap the price of Russian oil at USD 60 a barrel as part of the West's attempt to squeeze Moscow's oil revenues and limit its ability to wage war in Ukraine while keeping global prices and supplies steady.
From December 5, western shipping and insurance companies are prohibited from handling Russian oil sold above the price cap.
However, ships loaded with Russian oil before December 5 and unloaded at their destination before January 19, will not be subject to the price cap.
A top government official said India can continue to buy Russian oil if it can send ships, cover insurance and devise a mode of payment.
"The introduction of a price cap on Russian oil is an anti-market measure. It disrupts supply chains and could significantly complicate the situation in global energy markets," Novak said.
"Such non-market mechanisms disrupt the international trading system as a whole and set a dangerous precedent in the energy market. As a result, the problem of energy poverty is being aggravated not only in the developing world, but also in the developed countries of Europe," Novak said.
The two sides noted the record growth in trade between the two countries and expressed the desire to continue this interaction, increasing cooperation on trade in energy resources, such as oil, petroleum products, liquefied natural gas, coal and fertiliser.
In 2021, bilateral trade between Russia and India increased by 46.5 per cent, exceeding USD 13.5 billion, the Russian Foreign Ministry statement said.
In January-September 2022, trade exceeded the figure for all of last year, totalling USD 20.4 billion.
Over the first eight months of 2022, Russian oil exports to India grew to 16.35 million tonnes. Deliveries of oil products and coal also increased.
Meanwhile, Russia has for the second month in a row remained India's top oil supplier in November, surpassing traditional sellers Iraq and Saudi Arabia, according to data from energy cargo tracker Vortexa.
Russia, which made up for just 0.2 per cent of all oil imported by India in the year to March 31, 2022, supplied 9,09,403 barrels per day (bpd) of crude oil to India in November, the Russian Foreign Ministry statement said.
It now makes up for more than a fifth of India's oil supplies.
Novak has also invited Minister of Petroleum and Natural Gas and Housing and Urban Affairs of India Hardeep Singh Puri to take part in the international forum, Russian Energy Week 2023, which will be held from October 11-13 next year in Moscow.
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Sadananda Gowda expresses pain over factionalism in Karnataka BJP, urges central leadership to act
Bengaluru: Senior BJP leader D V Sadananda Gowda on Thursday expressed pain over factionalism in the Karnataka unit of his party and called it a " big tragedy". The former Union Minister also expressed displeasure over the party high command's delay in taking action, despite his letters and urged them to intervene and to act against those indulging in "indiscipline".
"There were Maharashtra and Haryana polls, as polls are a big challenge, it is natural to keep aside party issues in the states, where there are no polls, for later. So there may be some delay, but I don't think they will be silent," Gowda said responding to a question on factionalism within the party and high command's silence on it.
Addressing reporters here, he said, "However, there is truth in your question, because I have written two letters, one earlier and the other recently as dissent started brewing. But there was no reply for both, which made me feel that the central leadership was not paying attention to issues here." "It is a tragedy that Karnataka, which is regarded as the gateway for the BJP to south India, today has several doors (referring to groups within)," he added.
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A group of party leaders led by senior MLA Basanagouda Patil Yatnal, that include BJP MLA Ramesh Jarkiholi are critical of state leadership, especially President B Y Vijayendra, and are even holding parallel agitations over the Waqf land issue, after staying away from protests held by the party on the same issue. Yatnal and Jarkiholi have been openly critical of Vijayendra, accusing him of indulging in "adjustment politics" with the ruling Congress, and trying to keep the party in his clutches, along with his father and veteran leader B S Yediyurappa.
Recalling that there was much stronger groupism in the party earlier between the factions led by stalwarts, who built the party in the state -- late Ananth Kumar and Yediyurappa, Gowda, who had also served as the state president in the past, said, "but the rift never came to the streets then."
"In Karnataka BJP's history, this is the first time that the internal confusions within the party have come to the streets. This is painful. None of the so called self styled senior leaders of the party in the state, including me, are in a situation to set this right, while some are not even trying to set things right as it will benefit them, there are such leaders too in the party here. So high command has to intervene," he added.
Despite the ruling Congress in Karnataka giving issues to the opposition in a "golden bowl", Gowda said, the internal differences in the party is overshadowing it, and this has pained the party workers.
"Now I don't have any other responsibility other than being part of the party's core committee, but I'm pained looking at the situation of the party that gave me everything including positions of governing the state..... This is a big tragedy," he said.
Appealing to the party leadership to have a "serious look" at the party affairs in Karnataka before the Delhi elections, the former CM even requested them not to compromise on discipline. If action is taken against those who are wrong after detailed inquiry, the party will unite once again, he said. "People of the state want BJP."
Pointing to the saffron party's defeat in the recent by-polls in Shiggaon, Sandur and Channapatna assembly segments, Gowda said, people are not discussing Congress' maladministration, but division and groupism in the BJP. "Despite the BJP having good ideas and agenda, we lack a strong system to encash it." BJP's weakness of groupism has become Congress' strength, he added. Replying to a question on Yatnal and team not accepting Vijayendra as president, Gowda said, "The state president was appointed by the national leadership and that decision has to be accepted. If anyone has reservations about it, they should tell the leadership and not discuss it on the streets."
