KOCHI: Despite strong US opposition, India has decided to move ahead with the purchase of more crude oil from Russia at a lower price. India also gave a strong reply to the US by urging it not to politicize legitimate energy transactions. It also pointed out that countries such as Germany, Italy and France were still purchasing Russian crude oil.
Russia will supply oil at $ 20-25 less than the market price. Brent crude oil's market price stands at $107. The Indian Oil Corporation reportedly bought three million (30 lakh) barrels of Russian crude oil last week Russian company Rosneft at a discounted price. Hindustan Petroleum has agreed to buy 2 lakh barrels while Mangalore Refinery will buy 1 lakh barrels. According to the central government, 1.50 crore barrels will be bought from Russia this year. Rupees and rubles will be used for this.
Russian oil is not included in the sanctions imposed by the United States and the European Union. Russia decided to give oil at a discount to countries, including India, after several countries stopped buying Russian oil.
White House press secretary Jen Psaki had earlier said that India would find itself on the wrong side of history if it purchases discounted Russian oil.
It remains to be seen whether crude oil from Russia will be stockpiled or marketed. Russia has agreed to bear the cost of oil freight and insurance. This is a great achievement as far as India is concerned.
India's large investment in Russia
Although Russia accounts for only about 2% of India's total crude imports, Indian oil companies have invested $ 1 500 crores in Russian oil production. Russian oil company Rosneft has a $ 1290 crore investment in Indian company Nayara Energy.