India in talks to buy discounted Russian oil
India is exploring options to buy Russian crude, officials said on Tuesday, with prices falling to a record low in the wake of the global response to the Ukraine conflict.
New Delhi has historic diplomatic and defense ties with Moscow, hosted a rare foreign visit by President Vladimir Putin late last year, and called for an end to violence in Ukraine, but has fallen short of condemning the invasion. .
Its government is looking to cut a spiraling energy bill after rising oil prices in the wake of the conflict, as well as a Washington embargo prompting other potential buyers to stay away from Russian oil.
Oil Minister Hardeep Singh Puri said the government was in talks “at the appropriate level of the Russian Federation” regarding the purchase.
“Discussions are going on at present. There are many issues to be considered like how much oil is available,” he told Parliament.
Mr Puri said the government is looking at issues related to insurance, freight and payment of crude oil.
Many countries, including European countries, are heavily dependent on fuel from Russia, which is the world’s second largest crude exporter after Saudi Arabia.
According to government data, India – the world’s third largest crude oil importer – currently buys only about three percent of its supply from Russia.
According to local media reports, New Delhi is also trying to set up a rupee-ruble trading mechanism to pay for oil and other goods.
Crude oil prices fell to around $100 a barrel on Tuesday, adding to the downside in markets after hitting a nearly 14-year high last week.
The Ukraine crisis has left India facing a diplomatic dilemma after years of close ties with Russia during the Cold War, with Moscow still its biggest arms supplier.
Late last year, it began taking deliveries of the S-400 missile defense system from Russia, which it agreed to buy in 2018 for more than $5 billion, despite the threat of US sanctions.
At the same time, it needs Western support to contend with its increasingly assertive neighbor, China, in the wake of increasingly escalating territorial disputes in a deadly border conflict in 2020.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)