US Claims India Hid Russian Origin of Exported Fuel: Top RBI Official

US has claimed that India is exporting fuel made from Russian crude to the US, says a top Indian central banker.

A top Indian central banker said that this was in clear violation of US sanctions. Representative image.

(Image: The Quint)

The United States has claimed that India is exporting fuel made from Russian crude to the US and hiding its origin, a top Indian central banker told news agency Reuters on Saturday, 13 July.

An Indian ship picked up oil from a Russian tanker on the high seas and brought it to a port in Gujarat on the west coast, where it was refined and shipped to the US, said Reserve Bank of India Deputy Governor Michael Patra.

A top Indian central banker said on Saturday that this was in clear violation of US sanctions.

"The refined output was put back on that ship and it set sail without a destination. In the mid-seas it received the destination so it reached its course, went to New York," Michael Patra said.

It is to be noted that the US has imposed sanctions on Moscow for its invasion of Ukraine, and prohibited the import of Russian-origin energy products including crude oil, refined fuels, distillates, coal and gas to the United States.

“Over 30 countries representing well over half the world’s economy have announced sanctions that impose immediate and severe economic costs on Russia, cut off access to high-tech technology, sap its growth potential, and weaken its military for years to come. The Russian ruble is now worth less than a penny and has hit an all-time low after losing almost half of its value since Putin announced his further invasion of Ukraine,” said the White House in a statement in March.

India is the world's number three oil importer and has not joined the sanctions against Russia.

India is dependent on imports to meet 85 percent of its oil needs. After Russia’s invasion in Ukraine, the Russian oil prices fell as most countries shunned it. India and China became willing consumers. During April-June, Russian crude was cheaper than Saudi Arabia and the former surpassed the latter as the second-biggest supplier to India, according to a report by Bloomberg.