Finance Minister Nirmala Sitharaman has explained why India cannot simply stop purchasing Russian crude oil despite growing pressure from the United States on countries buying Russian energy.

Speaking at the BusinessLine Changemaker Awards, Sitharaman said India must prioritise energy security, availability and economic viability when deciding where to source crude. She warned that abruptly leaving the Russian market could tighten an already limited global supply pool and push oil prices higher.

Another challenge is refinery compatibility. Sitharaman said Indian refineries are largely configured to process medium-sour crude, meaning switching to grades that cannot be processed efficiently could reduce the economic rationale for an immediate change in suppliers.

India is, however, already diversifying its crude basket. Reuters reported that Russian oil imports fell 16.5% month-on-month in August to around 2.1 million barrels per day. Preliminary data also indicates imports could decline further to about 1.9 million barrels per day in September. Meanwhile, purchases from Iraq increased and supplies from other Middle Eastern sources rose.

Sitharaman said India will continue sourcing energy from different parts of the world based on availability and suitability, while keeping the country’s energy requirements at the centre of its decisions.