Indian authorities urge their companies to buy large volumes of oil from Russia – The WSJ

Indian authorities urge their companies to buy large volumes of oil from Russia, — The WSJ

According to journalists, local firms are now trying to find workarounds to continue importing “black” gold from sanctioned Russia.

The Government of India has turned to state oil companies with a request to buy huge volumes of cheap oil from Russia. The Wall Street Journal writes about this.

India, despite US and EU sanctions pressure on Russia, is trying to strengthen commercial ties with Moscow. According to journalists, the appearance of such a major player on the oil market could lead to an easing of restrictions on the Kremlin.

Representatives of Indian companies told reporters that they were approached by the country's leadership with a call to buy large volumes of “discounted” oil from Russia . Since the beginning of the full-scale invasion, India, according to The WSJ, has increased its imports of Russian oil products by more than 25 times, buying about 1 million barrels daily.

“Getting oil at a discount has great macroeconomic benefits for India. The country does not produce enough of its own energy to meet domestic demand. Like much of the world, it is struggling to ensure that rising fuel prices do not fuel runaway inflation. High oil prices in the past pushed the Indian currency to a sharp fall,” the journalists continued in their article and reminded that the Indian authorities are neutral in the war between Ukraine and Russia.

Moreover, according to The WSJ, Indian companies are currently trying to find workarounds to continue oil supplies from Russia after the EU imposed the sixth round of sanctions. As you know, the document contains a ban on insurance of ships carrying Russian “black” gold. This rule comes into force in December 2022, which is why the Indian leadership wants to enter into long-term contracts for the import of petroleum products.

Rosneft sweetened deals to attract buyers for its oil, allowing traders to pay for its crude oil several months after delivery without bank accreditation, a sign of desperation to keep their oil revenues. Traders go to great lengths to hide the origin of oil coming from Russian ports, purposefully making its way to refineries in India to avoid inspections, increased shipping costs and cargo insurance problems,” the journalists added in their article.

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