Russia has offered India the chance to buy oil and other commodities at discounted prices. The offer is currently being considered by the BJP led Central government.
“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,” said one of the Indian government officials quoted by Reuters.
Historically, India imports 80% of its oil and Russia contributes 2 to 3 % of India’s oil consumption. However, with the steep rise in oil prices (an increase of 40%), the government is planning on procuring more from Russia.
If it pans out, this move could help in reducing the rising energy bills across the country.
This alleged decision of the Union government comes at a time when most countries/international traders have been steering clear of procuring Russian oil as they are worried about the imposition of sanctions. The sanctions, if imposed on any country, would be a result of the Russian government’s invasion of its neighbouring country Ukraine.
The two officials who were quoted by Reuters, declined to be identified, did not say how much oil was on offer or what the discount was.
India has longstanding defence ties with Russia and abstained from a vote at the United Nations condemning the invasion, although the Centre has stated on various occasions that the violence should be ended.
