Russia offering India discounts of as much as $35 a barrel: Report


Earlier on Thursday, there were reports that the US warned that countries actively attempting to “circumvent or backfill” American sanctions against Moscow for its invasion of Ukraine would face consequences, and that it would not like to see a “rapid” increase in India’s imports of energy and other commodities from Russia.

Russia offering India discounts of as much as USD 35 a barrel Report gcw
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Moscow, First Published Apr 1, 2022, 3:18 PM IST

Russia’s invasion of Ukraine has sparked outrage in Western countries, and in response to mounting international pressure, the country has offered India huge discounts on direct oil sales. According to a Bloomberg report, Russia is supplying premier Urals grade to India at discounts of up to $35 a barrel on pre-war pricing in order to entice India to increase imports. “Headline Brent prices have gained by $10 since then, indicating an even greater discount from current pricing,” according to the Bloomberg report.

Earlier on Thursday, there were reports that the US warned that countries actively attempting to “circumvent or backfill” American sanctions against Moscow for its invasion of Ukraine would face consequences, and that it would not like to see a “rapid” increase in India’s imports of energy and other commodities from Russia.

But, according to US State Department Spokesperson Ned Price, each country has its own relationship with Moscow, and Washington is not looking to disrupt that. “Different countries will have different relationships with the Russian Federation. It’s a historical truth. It’s a geographical reality. That is not anything we want to change “During a news conference, Price stated.

According to the Bloomberg story, Russia has also provided rupee-ruble payments using Russia’s messaging system SPFS, which might make trade more appealing for India.

Also Read | India not buying crude oil in rupees from Russia: Govt clarifies

According to Reuters report, India has purchased at least 13 million barrels of Russian crude oil since Western sanctions were placed on Russian businesses following Moscow’s invasion of Ukraine, compared to approximately 16 million barrels for the entire year last year. Indian Oil Corp has a deal with Russian oil major Rosneft that allows India’s largest refiner the option to acquire up to 2 million tonnes of Urals in 2022, which is equivalent to around 15 million barrels.

Also Read: US ban on Russian oil, gas import: Time for India to build its own reserves, say experts

Last Updated Apr 1, 2022, 3:18 PM IST

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