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Russia ready to help India with energy supply amid disruption in Middle East: Report
A statement by the ministry of external affairs on Tuesday had flagged consequences for the Indian economy due to potential disruptions in energy supplies.
Russia is ready to help India with energy supplies in case there is any disruption, Reuters news agency reported citing a Russian source.
The offer comes even as the conflict in West Asia widens, with India on Tuesday reiterating the need to ensure the safety of one crore Indian nationals in the region.
In a statement by the ministry of external affairs, India also flagged consequences for the Indian economy due to potential disruptions in energy supplies. The West Asian region was plunged into conflict after the United States and Israel launched joint strikes against Iran, killing Supreme Leader Ayatollah Ali Khamenei. Tehran then launched retaliatory attacks on US military installations and other landmarks in Gulf countries.
As the attacks continue for the fourth day on Tuesday, Iran has blocked the strategically located Strait of Hormuz shipping route, which has in turn triggered a surge in oil prices. The narrow passage in the Persian Gulf is crucial, given that a fifth of all oil traded passes through it, the Associated Press reported.
India, flagging this in its statement, said, “Our trade and energy supply chains also traverse this geography. Any major disruption has serious consequences for the Indian economy.”
Roughly 50 per cent of India's crude oil imports and around 54 per cent of its LNG supplies transit through the Strait of Hormuz. It is the transit route for LNG from Qatar and UAE.
Qatar, India's largest supplier of imported natural gas, declares force majeure
Qatar, which is India's largest supplier of imported natural gas, declared force majeure after halting production in the wake of an Iranian drone strike, PTI news agency reported.
A force majeure essentially releases parties involved from any contractual provision under extraordinary and unforeseeable circumstances. This disruption has led to a cut of up to 40 per cent in supplies to the Indian industry, according to PTI. Qatar supplies about 40 per cent of the nearly 27 million tonnes of liquefied natural gas (LNG) that India imports annually.
Gas importer Petronet LNG Ltd informed gas marketers of Qatar halting its production. Petronet buys 8.5 million tonnes per annum of LNG from Qatar under a long term contract, PTI reported.
