India tries to take advantage of Russia’s discounted oil
Unlike the West, India does not want to cut off relations with Russia and is thinking of stocking up on oil, with payment in rupees. All the details
Despite the economic and political isolation of Russia carried on mainly by the United States and Europe after the invasion of Ukraine, India seems willing to take the opposite path. In addition to having refrained from condemning Moscow to the United Nations, New Delhi appears to be willing to take advantage of the discount on Russian oil to replenish its stocks.
INDIA WANTS OIL FROM RUSSIA
For India, Russia represents both a nation useful for balancing China in Asia and an important trading partner, especially as regards defense equipment (the best known example is that of the S-400 weapon system ) . However, it is not a significant supplier of oil: it is worth just 2-3 per cent of the total imported from New Delhi, which purchases 80 per cent of the oil it consumes from abroad.
In 2022, oil prices increased by about 40 percent, reports Reuters , and India therefore needs to find cheap barrels to contain expenses.
"WE WILL BE HAPPY TO ACCEPT IT"
An Indian government official told Reuters that “Russia is offering oil and other commodities at a steep discount. We will be happy to accept it ". However, he did not specify either the amount of the discount or the volume of oil that India would like to buy.
In addition to oil, New Delhi is evaluating the import, again at cheap prices, of agricultural fertilizers from Russia and Belarus, an ally of Moscow.
PAYMENTS IN RUPIE
To protect trade with Russia from Western sanctions, which could make dollar transactions increasingly complicated, India is developing a mechanism for payments in rupees, the national currency.
According to Reuters sources, the plan would involve the opening of current accounts in Indian state banks by Russian companies and credit institutions.
India had already developed a similar mechanism against Iran, sanctioned by the West for its nuclear program.
HOW MUCH THE INDIA-RUSSIA TRADE IS WORTH
In 2021, Russia's exports to India amounted to $ 6.9 billion and consisted mainly of mineral oils, fertilizers and rough diamonds. On the other hand, in the same year, Indian exports to Russian territory were worth 3.3 billion and consisted mainly of pharmaceutical products, tea and coffee.
Russia, along with Belarus, is worth nearly a third of India's total imports of potash , a chemical compound used in fertilizers.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/lindia-cerca-di-approfittare-del-petrolio-scontato-della-russia/ on Wed, 16 Mar 2022 14:55:51 +0000.