India is currently one of Russia’s few oil buyers – Photo: REUTERS
Russia is offering Urals oil (a reference oil brand used as a basis for pricing Russian export blends) to India at a discount of up to $35 per barrel compared to the time before the military campaign. in Ukraine, to attract India to buy more goods.
Discussions are underway at the government level, Bloomberg sources revealed March 31.
Currently, India and China are the main buyers of Russian oil. Under the pressure of international sanctions, Russian oil has “flowed” to Asia in larger volumes as buyers across Europe and the US “boycott” oil supplies from Russia in protest of the military campaign. Moscow’s involvement in Ukraine.
According to Bloomberg, the direct purchase is expected to involve Russia’s Rosneft PJSC and Indian Oil Corp., India’s largest refiner, which has an optional term contract for nearly 15 million bpd.
Vandana Hari, founder of oil market analysis firm Vanda Insights in Singapore, said that Russia’s consumption of Indian oil has been very small over the years, so refineries have not been properly designed to buy. lots of Russian oil.
The two sides are studying the transportation of oil through the Russian port of Vladivostok in the far east to avoid shipping barriers from the Baltic Sea. From there, oil trains can reach refineries on India’s east coast in less than 20 days.
No final decision has been made and the issue is likely to be discussed when Russian Foreign Minister Sergei Lavrov arrives in India for a two-day visit, which begins on March 31. India’s Oil Ministry declined to comment on this report.
India is also looking to boost exports of medicines, technical goods and chemicals to Russia to close the trade gap caused by buying oil and weapons. India has maintained a softer stance on Russia’s actions, while the US and its Western allies work to isolate and punish Russia over its military campaign in Ukraine.
New Delhi did not condemn Russia’s actions outright, even under international pressure. Before the visit of Russian Foreign Minister Lavrov, US Commerce Secretary Gina Raimondo said that if Russia and India reached such agreements, it would be “disappointing”.
India is the world’s largest buyer of Russian weapons and has also sought to buy cheap oil as fuel prices rise.