Russia offers oil to India at $35 per barrel discount from pre-war price

Oil, other commodities at a discounted price offered by Russia

Amid the Russia-Ukraine crisis, the Russian government has offered India the chance to buy oil and other commodities at discounted prices. India has been offered oil at a steep discount of $35 per barrel on prices before the war as mounting international pressure lowers the appetite for its barrels elsewhere following the invasion of Ukraine.

Russia is seeking new markets for its oil exports as Western sanctions tighten and India has been taking advantage of discounted prices to ramp up imports from the country.

India is the world’s third-largest consumer of oil, over 80% of which is imported.

In 2021, India bought about 12 million barrels of oil from Russia, only 2% of its total imports.

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.

Earlier, the Biden administration released some 1 million barrels of oil per day from strategic reserves for several months in a bid to calm soaring crude prices.

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.

PGurus is now on Telegram. Click here to join our channel and stay updated with all the latest news and views

For all the latest updates, download PGurus App.

• Author
• Recent Posts

PGurus Newsdesk

Latest posts by PGurus Newsdesk (see all)

• ED grills AAP legislator Amanatullah Khan in Delhi Waqf Board case - April 18, 2024
• DRDO successfully flight tests indigenous cruise missile - April 18, 2024
• ED attaches assets worth over Rs.97 cr of Raj Kundra, Shilpa Shetty in Bitcoin scam case - April 18, 2024