India is trying to convince Russia to offer deeper discounts on crude oil – Delhi is looking to pay less than $70 per barrel – to offset risks in dealing with the OPEC+ producer in light of increasingly harsh financial sanctions against Moscow over its invasion of Ukraine. Sources told Bloomberg discounts are being sought to compensate for hurdles like securing financing for purchases. Bloomberg said the Indian government did not immediately comment.
At the time of writing, global benchmark Brent is trading near $108 a barrel, down from a high of nearly $130 a barrel in the war’s initial days.
Indian refiners – state and private – have bought over 40 million barrels of discounted Russia crude since Vladimir Putin launched his ‘special military op’ against Ukraine February 24, Bloomberg said. Last month too Russia offered India discounts on a fixed one-time purchase of 15 million barrels. Total purchases are significant in volume – 20 per cent more than Russia-India flows in 2021, according to Bloomberg calculations from trade ministry data. The purchases have also invited pointed remarks from the West, including the United States and the European Union, but those were countered by the government pointing out the EU too had bought more from Russia and that India welcomed competitive offers to meet domestic demand.
