Russia will give more cheap oil to India
India is now getting more discounts on crude oil from Russia than ever. Donald Trump has imposed tough tariffs for many countries including India on purchasing oil from Russia. Despite this, India is now getting Russia’s ural grade oil cheaper by $ 3-4 per barrel. According to Bloomberg’s report, Russia has reduced prices even further for ships loaded in September and October. Where the discount in July was only 1 dollar, now it has reached above $ 2.5. On the other hand, the price of oil coming from the US is more than $ 3-5 per barrel than Brent crude. Because of this, buying Russian oil is proving to be even more beneficial for India.
Impact of Modi-Putin meeting
In the recent meeting of Shanghai Cooperation Organization (SCO), there was a conversation between Prime Minister Narendra Modi and Russian President Vladimir Putin for about 45 minutes. This meeting is considered very secret and impressive. Although the subject of negotiation was not made public, Russia has decided to give India more discounts on oil under its positive impact. India has become the biggest customer of Russian oil after the Ukraine War. Meanwhile, despite the US ban and tariff, India has strengthened relations with Russia by giving priority to its strategic interests.
Buying Russian oil completely legal: India
The US has accused India that it is buying Russia oil at cheap prices and selling it at expensive prices in the markets, which gives support to Russia’s war economy. White House advisor Peter Navaro described it as a move promoting war. In response, India has made it clear that buying Russian oil is completely legal and no international restrictions are applicable to it. Union Minister Hardeep Puri has said that due to buying oil from Russia, global oil prices were under control, which kept the economy of many countries safe.
India-China-Russia triangle strong
In the end of August, India has accelerated the purchase of Russian oil. Statistics from port agents show that between August 27 and September 1, India bought 1.14 crore barrels of Russian crude oil, which also included oil from the US banned ships. This oil was transferred from the ship to the ship and brought to India. Ural grade oil originating from the western ports of Russia has become an important source for India. Also, China is also Russia’s biggest oil customer. On the stage of SCO, India and China have expressed their intention to further strengthen their cooperation.
Why Russia’s crude made beneficial for India?
Ureles are a major crude oil brand of Russia, which is sent to the world from the western ports of the country. China is the largest buyer of this oil, which asks a large amount of crude oil from Russia through pipeline and tanker. At the same time, India is also taking full advantage of this opportunity and is constantly buying cheap crude oil from Russia. In fact, Russia’s crude oil is cheaper to India by about $ 5 to 7 per barrel compared to America. This reduces the cost of Indian refineries, which is beneficial for the country’s energy needs and economic interests. For this reason, India has continued to purchase oil from Russia, ignoring American pressure and business relations between the two countries have become stronger. This decision is considered very important for India’s energy security and strategic interests.