Soon after Qatar’s backlash in the Nupur Sharma controversy, the Modi government initiated talks with Russia on oil imports from Rosneft. Meanwhile, foreign players refuse to deal with Moscow over its invasion of Ukraine, India is aiming to increase its Russian oil imports, with state-owned refiners willing to take more steeply discounted supplies from Rosneft PJSC.
According to reports, and procurement plans, state processors are working together to finalise and secure fresh six-month supply contracts for Russian crude to India. Cargoes are being sought from Rosneft on a delivered basis, with the seller handling shipping and insurance, they claimed.
If these supply arrangements are reached, they will be separate from the supplies that India presently receives from Russia under existing agreements. The persons who asked not to be identified because the conversations are private claimed that details on volumes and pricing are still being negotiated with Indian banks poised to fully fund all cargoes. They noted that as large international merchants such as Glencore Plc wind down their deals, Indian refiners will increasingly purchase straight from Russian enterprises such as Rosneft.
Indian Oil Corp, Hindustan Petroleum, and Bharat Petroleum are state refiners, while Reliance Industries and Nayara Energy, which is partly controlled by Rosneft, are private refiners. Procurement for both public and private companies is handled independently. When questioned about the situation, spokespeople for the three main state-owned firms couldn’t immediately comment.
Indian refineries, both public and private, have increased their purchases of Russian crude as a result of US, UK, and European Union sanctions and trade restrictions, which have driven most purchasers to flee and offer levels to plummet.
Since late February, when Russia invaded Ukraine, the resulting panic and rerouting of global oil flows have boosted oil by more than 20%.
Refiners in Asia’s second-largest oil consumer have seen increased profits from converting cheap crude into fuels that are sold both locally and to clients in Europe and the United States. India’s overall crude oil feedstock basket includes Russian crude as well as other long-term and spot acquisitions from the Middle East and Africa.
Despite the fact that India’s purchases of Russian crude are not unlawful or in violation of any sanctions, the Biden administration and the EU have pressured the country to stop doing business with Moscow in order to cut off the Kremlin’s access to oil earnings and money. Discounted Russian oil has brought some comfort to India, which imports more than 85% of its oil, just as inflation and the cost of everything from food to fuel are skyrocketing. Access to low-cost crude is already boosting India’s oil imports, which increased by nearly 16 per cent in April over the previous year. According to figures from the oil ministry, the share of oil from the Eurasian region, which includes Russia, increased to 10.6 per cent in April from 3.3 per cent a year earlier.
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