Russia is sanctioned to cut prices for oil, India considers purchases
(Moscow/New Delhi on the 14th) Russia, which was sanctioned for invading Ukraine, is now seeking export channels. Indian officials said that India took into account discounts offered by Moscow to buy crude oil and other commodities from Russia, and completed the transaction by exchanging Indian rupees for Russian rubles.
80% of India’s crude oil demand comes from imports, and purchases from Russia usually account for 2 to 3%. Oil prices have surged 40% this year, and the New Delhi government is looking for ways to reduce rising energy spending.
British media reported that an Indian official said: “Russia has proposed a large discount on crude oil and commodity prices, which we are happy to accept. There are still some issues to be resolved, such as tankers, insurance and crude oil reconciliation. Once resolved, we will accept this discount proposal. .”
Some international buyers have avoided Russian crude, hoping not to be involved in sanctions, but Indian officials have said sanctions cannot prevent India from importing Russian oil.
The official said a rupee-to-ruble transaction was being established to pay for raw and other goods. The official, who asked not to be named, did not say how much crude Russia is willing to supply or the extent of the discount.
India’s finance ministry also did not respond to emails seeking comment.
Moscow authorities have called on Russia-friendly countries to maintain trade and investment relations with them. India and Russia have a longstanding defence relationship and had abstained from a UN resolution condemning Russian aggression. However, India called for an end to the conflict.
Russia’s Surgut Oil and Gas Co has allowed Chinese buyers to bypass sanctions without a letter of credit, the sources said.
India’s new fiscal year will start in April, and as the cost of the subsidy program soars, the Indian government also wants to buy raw materials for fertilizers from Russia and Belarus.
The Indian government, which has doubled the cost of the subsidy scheme for the year ended March 31, has now budgeted a further 149 billion Indian rupees ($1.94 billion; RM8.147 billion).