India may buy discounted Russian oil and commodities, say officials
- India imports 80 per cent of its oil needs, usually buys around 2-3 per cent of its supplies from Russia, now said to be offering ‘a heavy discount’
- With oil prices up amid tough Western sanctions over Moscow’s invasion of Ukraine, Indian government wants to reduce rising energy bill
India is considering taking up a Russian offer to buy its crude oil and other commodities at discounted prices with payment via a rupee-rouble transaction, two Indian officials said, amid tough Western sanctions on Russia over its invasion of Ukraine.
India, which imports 80 per cent of its oil needs, usually buys about 2-3 per cent of its supplies from Russia. But with oil prices up 40 per cent so far this year, the government is looking at increasing this if it can help reduce its rising energy bill.
“Russia is offering oil and other commodities at a heavy discount. We will be happy to take that. We have some issues like tanker, insurance cover and oil blends to be resolved. Once we have that we will take the discount offer,” one of the Indian government officials said.
Some international traders have been avoiding Russian oil to avoid becoming entangled in sanctions, but the Indian official said sanctions did not prevent India importing the fuel.
Work was ongoing to set up a rupee-rouble trade mechanism to be used to pay for oil and other goods, the official said.
The officials, who both declined to be identified, did not say how much oil was on offer or what the discount was.
The finance ministry did not immediately reply to an email seeking comments.