Russia can sell crude oil to India at a much lower price. Russia is a very old friend of India. This deal of 3.5 million barrels in both the countries can be done soon. Russia will itself bear the cost of transporting this oil to India and insurance. The English business news website Economic Times has given this news.
India has kept its stand neutral in the fight between Russia and Ukraine. He insisted on finding a solution through dialogue. He has not participated in the voting on this issue in the United Nations. On the other hand, the US has said that if India accepts the offer to buy oil from Russia at a very low price, then it will not violate the US sanctions imposed on Russia.
Petroleum Minister Hardeep Singh Puri said in the Rajya Sabha on Monday that India is considering an offer to buy oil from Russia at a cheaper price. He had said that buying oil at a discount would reduce the cost of oil for India. English news website TOI has reported that after the deal, Russia can soon deliver oil to India.
The government has not yet finalized the payment modalities for this deal. But it is believed that this deal can be approved soon in Rupee and Ruble. India imports 85 per cent of its oil requirement. India imported 176 million tonnes during April last year to January this year. If India buys 3.6 million tonnes from Russia, then it will be 2 per cent of the total deal from April to January.
US government officials have indicated to understand India’s position. He has told US lawmakers that India is heavily dependent on Russia for its security. However, Indian-American lawmaker Dr Amy Bera expressed her dismay at the news of India buying oil from Russia.
Oil prices have skyrocketed since Russia’s invasion of Ukraine began. Crude oil prices rose to $130 per barrel. However, it has shown signs of softening. Now the price of crude has gone below $100 per barrel. Crude has fallen on hopes that the war between Russia and Ukraine will end.
Russia is the largest producer of crude in the world. But, after the attack on Ukraine, America and European countries have imposed many types of sanctions on Russia. The US has also imposed sanctions on Russian crude oil.