New Delhi: State-run refiners have the government’s blessing to buy Russian crude from the market without violating the ban clause, which suggests that almost all have floated tenders at a time when business houses are finding it difficult to find buyers. .
Led by the largest state-run refiner Indian Oil, Hindustan Petroleum And MRPLexploration giant’s refining subsidiary ONGCAmong them are lifting six million barrels of Ural grade from Russia from European trading houses. reports have suggested Bharat Petroleum Will be in queue soon.
India imports 85% of its oil but Russia has never been a major source for refiners, mainly because of the high cost of shipping which includes transshipment. Between April 2021 this year and January this year, the share of Russian crude in India’s oil imports was just 2%.
Then there is more than demand that is driving these tenders. “There is no way that almost all major government refiners would have floated tenders for Russian crude oil in the current situation without giving voice to the government,” said an expert.
TOI had on March 15 reported India agreeing to buy Russian oil. With good reason. Russian energy exports, per se, are not approved. Europe continues to buy them. Banks’ reluctance to handle payment and shipping insurance issues is driving many buyers away.
Also, the government is not involved in the deal, the companies are. The deals are with global business houses, which are looking after shipping and insurance. Therefore payments can be made through normal channels, removing the need for rupee-ruble trade. The US has already said that this oil purchase does not violate sanctions.
Allowing crude to flow from Russia, where state-run energy companies have invested $15 billion, thus signals New Delhi to leave its options open on energy security and allow Moscow to continue trading. also satisfies.
There were many signs of a deal. “I have negotiated with the appropriate levels of myself” Russian Federation, Discussions are on (on buying oil) at present,” Oil Minister Hardeep Puri told last week ParliamentAdding issues like availability, payment and insurance were being considered.
Next came the Deputy Prime Minister of Russia Alexander NowakiPuri’s “detailed” discussion on deepening bilateral energy ties. “Russia’s oil and petroleum product exports to India have reached $1 billion and there are clear opportunities to increase this figure,” a Russian readout of the meeting said.
Led by the largest state-run refiner Indian Oil, Hindustan Petroleum And MRPLexploration giant’s refining subsidiary ONGCAmong them are lifting six million barrels of Ural grade from Russia from European trading houses. reports have suggested Bharat Petroleum Will be in queue soon.
India imports 85% of its oil but Russia has never been a major source for refiners, mainly because of the high cost of shipping which includes transshipment. Between April 2021 this year and January this year, the share of Russian crude in India’s oil imports was just 2%.
Then there is more than demand that is driving these tenders. “There is no way that almost all major government refiners would have floated tenders for Russian crude oil in the current situation without giving voice to the government,” said an expert.
TOI had on March 15 reported India agreeing to buy Russian oil. With good reason. Russian energy exports, per se, are not approved. Europe continues to buy them. Banks’ reluctance to handle payment and shipping insurance issues is driving many buyers away.
Also, the government is not involved in the deal, the companies are. The deals are with global business houses, which are looking after shipping and insurance. Therefore payments can be made through normal channels, removing the need for rupee-ruble trade. The US has already said that this oil purchase does not violate sanctions.
Allowing crude to flow from Russia, where state-run energy companies have invested $15 billion, thus signals New Delhi to leave its options open on energy security and allow Moscow to continue trading. also satisfies.
There were many signs of a deal. “I have negotiated with the appropriate levels of myself” Russian Federation, Discussions are on (on buying oil) at present,” Oil Minister Hardeep Puri told last week ParliamentAdding issues like availability, payment and insurance were being considered.
Next came the Deputy Prime Minister of Russia Alexander NowakiPuri’s “detailed” discussion on deepening bilateral energy ties. “Russia’s oil and petroleum product exports to India have reached $1 billion and there are clear opportunities to increase this figure,” a Russian readout of the meeting said.