Russia gave this attractive offer to India amidst a barrage of sanctions
Categories: FOREIGN COUNTRIES
Russia is getting the punishment for the attack on Ukraine in the form of sanctions. European countries, including the US, have imposed tough economic sanctions on Russia. Meanwhile, Russian oil companies troubled by sanctions are offering India huge discounts on oil. These Russian companies are offering India a discount of up to 25-27 percent on the price of crude oil. According to the Business Standard report, many Russian banks have been removed from the international banking system SWIFT banking system due to the attack on Ukraine, after which it has become difficult for Russia to do business with other countries.The government of Russia is engaged in preparing a new payment system to get out of this situation. If this happens, then Russia's oil trade with India will be able to increase. India buys a large quantity of crude oil from Russia's largest state-owned oil company Rosneft. When Russian President Vladimir Putin visited India in December last year, Rosneft and India Oil Corporation signed a contract to supply up to 20 million tonnes of oil to India through the Novorossiysk port by the end of 2022. Although India is dependent on the Middle East for oil purchases, but it is moving towards increasing oil purchases from countries like America and Russia, so that imports of oil can be diversified. According to a Bloomberg report, just before the imposition of sanctions, the price of Russian crude oil went down by 11.60 barrels. Despite this, the bid for Russian crude oil did not take place, because in view of possible sanctions on Russia, buyers of oil were not found. Many Russian banks have been removed from the SWIFT banking system, due to which it has become difficult for other countries of the world to do business with Russia. The Government of India and the Reserve Bank of India are exploring alternative avenues to pay for their imports from Russia.India is talking to banks and companies to find a way out about this.