- The Indian government has asked state-owned oil companies buy large volumes of cheap Russian crude, The Wall Street Journal reported.
- Russian crude prices plunged after Moscow invaded Ukraine in late February, prompting sanctions by Western nations.
- Russia’s Rosneft is allowing traders to pay for their crude oil months after delivery without a letter of credit from a bank, the report said.
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The Indian government has asked state-owned oil companies to buy large volumes of Russian crude as prices have fallen sharply during Moscow’s war against Ukraine, The Wall Street Journal reported on Tuesday.
Oil executives in India said government officials in recent weeks have been strongly encouraging them to find ways to continue purchases and take advantage of discounted Russian oil. State-owned Indian Oil Corp. is negotiating more supply contracts with Russia’s Rosneft Oil, one executive told The Journal.
Western sanctions triggered by Moscow’s invasion of Ukraine in late February sent Russian crude prices plunging. A popular grade known as Urals had fallen to as low as $37 below the Brent benchmark.
Indian companies have been finding workarounds to keep purchasing Russian oil despite the latest round of sanctions from Europe, the report said. To boost the appeal of its oil, Rosneft has allowed traders to pay for its crude months after delivery without a letter of credit from a bank, the Journal reported.
India’s purchases of Russian oil are commercially driven, with the country struggling to contain surging inflation as energy prices have spiraled higher. The Indian government has kept a neutral position in the war between Russia and Ukraine.
Brent crude, the international benchmark, has climbed about 47% so far this year, trading above $114 during Tuesday’s session.