It is rumoured that closeness between China and Russia has become the primary reason for India’s backout from their oil business. Currently, the third largest oil importer is seen purchasing 863,950 barrels of crude oil per day from its neighbouring country, Saudi Arabia.
Higher intake of Caspian sea oil, mainly from Kazakhstan, Russia and Azerbaijan, have hit India’s purchases from Africa and other countries. African oil’s share in August halved to 4.2% while Latin America’s share fell to 5.3% from about 7.7%, the data showed.
In August, the United Arab Emirates held the fourth position while Kazakhstan replaced Kuwait to become fifth-largest oil supplier to India, followed by the United States.
Though the inners from the ministry has been justifying this move when questioned through various statistics, but economic experts assure it to be India’s biggest blow during the hard times of Russia. According to some, India is planning a “COLD ECONOMIC WAR” against one of the biggies of world market. Hence, this move clearly indicates their stand.