As India continues to procure fuel from Russia during the ongoing Ukraine conflict despite objections from western countries, the US has said it is not looking at imposing sanctions against India and is “comfortable” with oil purchase.

US Assistant Secretary of State for European and Eurasian Affairs Karen Donfried late on Wednesday said that the relationship with India is most consequential and while the policy approach of the US and India may differ, both share a commitment to uphold the order based on international rules and have respect for territorial integrity and sovereignty.

US Assistant Secretary of State for Energy Resources Geoffery Pyatt added the US was “comfortable” with India’s approach on Russian oil purchase “but we value the dialogue that we continue to have on the issue”. He also mentioned how energy security was invariably part of most bilateral discussions lately.

India continues to buy discounted oil from Russia despite the West’s sanction. Moscow has become New Delhi’s second biggest oil supplier, replacing Saudi Arabia, after Iraq. Moreover, New Delhi has so far refrained from voting against Russia in the UN on the issue of its military action in Ukraine.

The US has backed its decision on the price cap imposed on Russian oil and said it was an opportunity for India, even though it is not participating in it, to negotiate a better price. In December, US National Security Council spokesman John Kirby said the price cap “will lock in the discount on Russian oil” and countries like China and India would be able to bargain for steep price reductions.

The idea of the price capping was to squeeze the revenue of Russia that is fuelling the war in Ukraine and the US diplomats indicated that they believe the sanctions are having their intended impact.

Over the last months, India has been buying more and more cheap Russian oil and refining it into fuel for Europe and the US. Fuel refined in India is not considered to be of Russian origin.

India shipped about 89,000 barrels a day of gasoline and diesel to New York last month, the most in nearly four years, according to data intelligence firm Kpler, reported news agency Bloomberg. Daily low-sulfur diesel flows to Europe were at 172,000 barrels in January, the most since October 2021, Bloomberg reported.

US Assistant Secretary Pyatt said the energy security agenda that India and US are pursuing together is particularly important in light of what Russian President Vladimir Putin has done over the past year to disrupt global energy markets.

“By weaponising Russia’s oil and gas resources, Russia has demonstrated that it will never again be a reliable energy supplier. It also caused a short spike in global oil and gas prices which continue to ripple around the world,” Geoffrey Pyatt said.

Though India is not a participant in the price cap, it has effectively used its negotiation leverage which it derives from the price cap and the fact that large portions of the global market are no longer accessible to Russia, to drive down price of Russian crude, Pyatt said.