We Will Not Stop Buying Oil From Russia: Big Declaration From ONGC Amid Tariff Hike of 25% by US
The United States (US) has increased tariff imposition on Indian products by 25%, leading to a total tax increment of 50%. According to a recent media report, this extra 25% increment has been achieved as a result of buying oil from Russia. The Oil and Natural Gas Corporation (ONGC), an Indian government company, said on Friday that it will continue to buy oil from Russia until it is legal as per commercial rules.
ONGC Chairman, Arun Kumar Singh, said that till now, Russian Oil is not banned in India; hence, it will continue to buy oil from Russia until the government passes further orders regarding the matter. The company also mentioned that if ONGC can get energy assets at a good price, it would think about buying them in other countries too.
21 Ongoing ONGC Projects in Country
The company, Oil and Natural Gas Corporation (ONGC), has two branches, i.e., Hindustan Petroleum Corporation (HPCL) and Mangalore Refinery and Petrochemicals, which often buy oil from Russia for their refineries as an intermediate good. In the meantime, the company is also planning to increase its domestic production. Presently, its two branches are jointly running a total of 21 projects with an estimated cost of approximately Rs. 66,000. Among these projects, nine are development projects, and the remaining are projects related to infrastructure.
ONGC Searching for Investment Opportunities
Previously, ONGC Videsh Managing Director, Rajarshi Gupta, had said that the company is searching for more greenfield and brownfield assets in foreign countries such as Latin America, Africa and West Asia. Also, thinking of investing in LNG (liquefied natural gas) and oil and gas production assets in the United States (US). He said, “We are looking for suitable assets in the US. We have three projects in Russia, but we are also looking at other geographies.” He said these countries are suitable for their investment, as they are rich in minerals. During that time, he also predicted the future price of crude oil to remain constant at around $60 per barrel.
Russian Goods Import Cost Increased Due to the War With Ukraine
India and China are the two countries that buy large amounts of oil from Russia every year. Both of them are the largest buyers of oil from Russia. India has increased its purchase of crude oil from Russia since the war began between Russia and Ukraine. As per the reports from the Commerce Ministry in 2018, around 1.3% of India’s imports are associated with Russia; this percentage increased to 35% in the financial year 2024-25.
