New Delhi: Russia has been offering India oil steep discounts as mounting international sanctions lowers the appetite of the barrels elsewhere following its assault on Ukraine. Meanwhile, MoS for Petroleum and Natural Gas Rameshwar Teli said that the centre was closely monitoring global energy markets.
India which is 85 per cent dependent on the export of oil to meet it needs is procuring oil from Russia at a discount of $35 per barrel on the pre-war price. Russia wants India to take 15 million barrels contracted for this year just to begin with, sources in the know said. Russian barrels across Asia have been flowing in greater volumes after the West and Europe imposed sanctions while India and China remained neutral on its ties with Kremlin.
Moreover, Russia has also offered Rupee- Rubble denominated payments using its messaging system SPFS, which could make trading more attractive for India. Since the war, India has purchased around 13 million barrels of Russian oil snapping the chance on discount.
The two sides are reportedly exploring to ferry oil through Russia’s Vladivostok Port in the far east to avoid shipping hurdles from the Baltic Sea in the west of the country. From there, oil shipments could reach India’s east coast refineries in fewer than 20 days.
India is also seeking to push for greater exports of medicines, engineering goods and chemicals to Russia to narrow its trade gap created by oil and arms purchases.
Brent crude prices slid to $ 104.63 a barrel on Friday.