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- India will continue to buy cheaper oil from Russia, now Moscow is our fourth largest supplier
New Delhi4 hours ago
India will continue to buy cheaper crude oil from Russia. However, how much discount will be available on this from Russia, it is not yet decided. A senior government official with knowledge of the matter gave this information.
He said- India currently buys crude oil at an average price of $ 100 per barrel. However, the Russo-Ukraine war has provided a great opportunity for India to import cheap oil. America has a problem with India’s purchase of crude oil from Russia, but the central government did not change the policy in this matter.
Consideration of payment mechanism
Regarding the payment, the official said that in view of the US sanctions, the government is considering the payment mechanism. Rupee-Ruble mechanism is also being considered. Some countries of Europe are paying Russia in ruble.
India increased oil purchases from Russia
India imports 80% of its oil requirement. India increased Russian oil imports in April to about 2 lakh 77 thousand barrels per day, from 66 thousand barrels per day in March. Last year, there were 8 countries from which India had bought more oil than Russia, but by April of this, this figure has become much more. India is the largest country in the world in terms of consumption after the US and China.
Russia is our fourth largest crude supplier
Russia became India’s fourth largest crude oil supplier in April. India is buying more crude than this from Iraq, Saudi Arabia and UAE. The share of African oil in India’s total crude imports declined from 14.5% in March to 6% in April, while the US’s share nearly halved to just 3%.
As of March 2022, India was buying only 3% of its oil from Russia, Kazakhstan and Azerbaijan. After just one month, this share rose to 11%. Russia is ready to sell 487,500 barrels per day of oil to India.
Buying crude oil from Russia is expensive
Buying India’s crude oil from Russia is simply an opportunity, as it is an expensive deal for Indian refiners in normal days. Transport distances for crude oil supplies are extremely long, shipping times are long. Freight is expensive. Along with this, in normal days Russia does not have enough oil to sell it to India.
America objected to India’s oil purchase from Russia
Officials of the Biden administration of America have reached India on Tuesday to prevent the continuous increase of crude oil from Russia to India. According to a Treasury Department spokesperson, US Assistant Secretary of State for Terrorist Financing and Financial Crimes Elizabeth Rosenberg will visit New Delhi and Mumbai on Thursday.
The idea of banning oil purchases
Rosenberg’s visit to India is part of a wider effort by the Biden administration. In this, US allies around the world will be told about the sanctions and export controls imposed by the US to the officials and industrialists. Currently US sanctions against Russia do not prevent other countries from buying Russian oil.
The Biden administration is considering moderate sanctions that could restrict these purchases.