Stubb in India: This is Finland’s message about Russian oil

President of Finland Alexander Stubb brought up the Prime Minister of India in the debates Narendra Modi with the oil trade in terms of both security and the energy market.

Stubb told Kauppalehti during his three-day visit to Delhi, India, that he discussed with Modi the tense situation in the Middle East and its effect on the market and oil prices.

At the same time, Stubb brought up Finland’s view on Russian oil purchases.

“I explained why buying Russian oil from India is a bad thing for us. It increases Russia’s war coffers, and Russia is also a security threat to us,” said Stubb.

India is dependent on imported oil, and it wants to secure the country’s own energy supply.

The realities must be kept in mind, he said.

“The Finnish president cannot advise India on who they should buy energy from, but India makes its own decisions,” Stubb said.

The Iranian crisis affects Russia’s position

According to Stubb, the escalation of tensions in the Middle East can affect the dynamics of the war in Ukraine in two ways.

Firstly, an increase in the price of oil would be economically beneficial for Russia, even though an international price ceiling has been set for the country’s oil.

“An increase in the price of oil would be a positive thing from Russia’s point of view, even if the sales ceiling still limits income,” said Stubb.

On the other hand, the situation in Iran can make the country’s cooperation with Russia more difficult.

“Iran’s chances of cooperating with Russia would decrease. So from Russia’s point of view, there are both pros and cons,” he said.

According to Stubb, India’s political leadership understands well Finland’s security concerns regarding Russia.

“We went through (with Modi) the basics and I explained how the situation has changed compared to a year ago,” he said.

“Ukraine’s frontline situation is better at the moment. In February, Ukraine was able to take back more territories than Russia managed to take,” he said.

According to Stubb, a significant change is also the start of peace negotiations.

India wants to keep doors open everywhere

According to Stubb, the question of whether India could change its line with Russia is complicated because India wants to keep relations open in different directions.

At the same time, the country has moved closer to Europe in recent years, and according to Stubb, the key factor is the recently agreed free trade agreement between the European Union and India.

“India’s economy is currently growing by more than seven percent a year. In Finland, we often talk about China’s growth, but India’s growth is clearly faster at the moment,” he said.

In addition, the country’s demographic development supports economic growth.

“Here, the population structure supports growth, and the future of the economy looks strong. Finland should also invest in relations with India.”

Stubb was accompanied by a delegation of more than twenty companies in India, and the discussions brought up several areas in which Finland could have strong expertise.

One of them is telecommunication networks. A technology company Nokia is already a significant player in the Indian market and there would be more room for Finnish expertise in the field. Another key field is quantum technology.

“India is currently investing heavily in artificial intelligence, so cooperation could be natural,” said Stubb.

The third possible area of ​​cooperation is satellite technology. The President’s delegation included several Finnish companies in the field, such as ReOrbit and ICEYE.

State visits are only door openers and the final results, however, depend on the companies themselves.

“After that, it’s up to the companies what kind of concrete contracts and deals they manage to make,” he said.