By Sanjeev Miglani

NEW DELHI (Reuters – India’s crude oil imports will increase by 11% from the United States this year according to officials. The highly energy-deficient nation is trying to get supplies from countries around the globe, including Russia.

An oil price surge following Russia’s invasion in Ukraine last month could fuel inflation in India, strain public finances, and slow growth right as it is emerging from a recession-induced pandemic.

New Delhi has been criticised by the West over its security and political ties to Moscow. Many believe that Russia’s business dealings with India will aid in funding its war. India has called for an end to violence in Ukraine, but it abstained form voting against Russia.

Fumio Kishida (Japan’s Prime Minister) met Narendra Modi, his Indian counterpart, during Saturday’s visit. They agreed to encourage a united approach regarding Ukraine.

India imports the bulk of its oil from Middle East. However, this year the United States has become the fourth-largest source, and supplies will increase substantially in the coming years, a government official told Reuters.

India imports 23 percent of its oil from Iraq. Saudi Arabia supplies 18%, and the United Arab Emirates 11%. An official from the U.S. said that the U.S. market share will climb to 8.8% in the coming year. He spoke anonymously because of government policy.

Russia was a minor player on the Indian market but has offered discounted oil since February 24, when it invaded. This is to ease the impact of the sweeping sanctions that have been placed by the United States.

Indian Oil Corp. is the nation’s largest refiner and recently purchased 3,000,000 barrels of Russian crude oil via a tender. Hindustan Petroleum Corp. has reserved 2,000,000 barrels for its May loading.

India is open to competing oil sales, including from Moscow, particularly when world prices are rising, stated another official, supporting the purchase from Russia.

The second official stated that European countries import Russian oil and gasoline and India is not going to stop them.

According to this official, Western sanctions have created exemptions in order not to impact Moscow’s imports of energy. Russian banks which process these payments remain on SWIFT, according the official.

According to the official, India’s legitimate oil transactions shouldn’t be politicized. It is not possible to credibly recommend restrictive trading by countries that have oil self-sufficiency, or import themselves from Russia.