Russia’s share in India’s oil imports touch a high of 42% in May While the share of the 13 member countries of OPEC in India’s crude oil imports has been consistently declining over the last six years, it fell sharply in FY23 and FY24 till date. This is because the country suddenly scaled up oil imports from Russia following the geopolitical conflict. Taking advantage of the ban imposed by the US and European Union on imports from Russia after it invaded Ukraine in February 2022, India ramped up its oil imports from Russia as it started selling its oil at a discount to select countries. According to the Petroleum Planning and Analysis Cell (PPAC), the share of OPEC in India’s crude oil import fell almost 15 percentage points from 86.5% in in April-May FY18 to 71.8% in April-May FY22, and further to 66.7% and 44.9% respectively in the corresponding periods in FY23 and FY24. In May 2023, with 1.96 million barrels per day (mbd) from Russia, the share of Russian oil imports reached a record high of 42%, which was higher than the combined oil imports from Saudi Arabia, Iraq, the UAE and the US. Saudi Arabia saw a major decline. India, the world’s third largest crude oil importer and consumer, has been strategically diversifying its crude supply sources. It has a daily oil consumption of around 5 million barrels with a refining capacity of 250 MMTPA. Indian energy companies buy from all major oil producers in the world. From Russia, it buys in US dollars for oil below the $60 per barrel cap imposed by the West, and uses UAE dirhams for oil above the cap. India stepped up its import of cheap Russian oil despite sanctions from the West saying it had to provide “energy justice” to its citizens. “India has the unique distinction of servicing 60 million visitors at its petrol pumps every single day. Despite challenging times, it is important for the government to ensure access to affordable energy to our citizens,” the government said last year.
The Japanese pharma major is also filing a plea before the Delhi HC seeking appointment of forensic auditors to analyse transactions involving IHH, Fortis Healthcare and RHT, Singapore, as directed by the HC on October 18.
The development is likely to create legal hurdles and delay the proposed open offer as IHH had recently told FE that it could only go ahead if Sebi agreed with its legal interpretation that the SC’s September 22 order has lifted all such restraints.
IHH managing director and CEO Kelvin Loh told FE on November 9 that the company would like to go ahead with the open offer “as soon as possible” as there has already been a delay of four years. Ravi Rajagopal, chairman of Fortis Healthcare, had added that their legal counsel has advised that the company can go ahead with the open offer as the SC order has disposed of various appeals, including the suo motu contempt. “We have represented to the Sebi and the matter is with them,” Rajagopal had said.
However, legal observers told FE that the matter is not that straightforward and simple as the Delhi HC has to take the final call on the matter of open offer as well as whether a forensic audit has to be done in the share sale which was executed in 2018.
Also Read: IHH to float open offer for Fortis if Sebi concurs with our legal view: MD & CEO
Loh and Rajagopal had said the possibility that the matter may take a different turn when it comes up in Delhi HC cannot be ruled out.
IHH had in July 2018 acquired a 31% stake in Fortis Healthcare for Rs 4,000 crore through the bidding route. It had also earmarked Rs 3,000 crore to make an open offer for an additional 26% to the public shareholders as required under the law.
Daiichi has written to Sebi that the SC in its September 22 order had asked the HC to consider ordering a forensic audit into the dilution of FHL shareholding, repeated violation of undertakings and assurance by former FHL promoters — Malvinder and Shivinder Singh — and the transaction between FHL, IHH and the clandestine transfer of Rs 4,666 crore to RHT Singapore.
Daiichi is “severely prejudiced” with IHH’s clandestine attempt to subvert the status quo order directed by the SC on December 14, 2018, and September 22 with respect to the conduct of forensic audit and the pending proceedings before the HC by purportedly consulting regulatory authorities, including Sebi, on the proposed FHL-IHH transaction. It has reiterated that the FHL-IHH transaction was currently sub-judice before the HC where FHL is also a party, its solicitors, P&A Law Offices, have said in the letter.
“We further state that any such attempt by FHL and/or IHH to proceed with the FHH-IHH transaction would be in direct contravention of the HC and SC orders,” the letter sent by the law firm has stated. Daiichi Sankyo is pursuing the enforcement of Rs 3,500-crore arbitration award against the Singh brothers pronounced by a Singapore tribunal for concealing information when they sold Ranbaxy Laboratories to it for $4.6 billion in 2008. The apex court had in 2018 put on hold the sale of Fortis Healthcare to IHH on a contempt plea filed by the Japanese drugmaker against the Singh brothers.
Kotak Mahindra Capital Company Ltd, ICICI Securities Ltd and JP Morgan India Pvt Ltd are the book running lead managers to the issue.
The equity shares of Blue Jet Healthcare are proposed to be listed on the BSE and the NSE.