India buys Russian oil at significant discount despite US sanctions, - Bloomberg
India's state-owned oil refining companies, including Indian Oil Corp. and Bharat Petroleum Corp., purchased Russian oil for delivery in January, attracted by significant discounts.
This was reported by Bloomberg, citing sources, according to Censor.NET.
India's business with Russia
According to the publication, the discount is currently $5 per barrel, compared to $3 a month ago.
Taking into account discounts and transportation costs, Russia receives an average of about $40-45 per barrel. Calculations are made in UAE dirhams and US dollars.
These purchases indicate a cautious return of some Indian refineries to Russian oil, although overall spot purchases remain limited due to sanctions.
According to sources, India's total purchases are unlikely to exceed a third of the average annual rate of 600,000 barrels per day.
At the same time, purchases by the sanctioned refinery Nayara Energy Ltd., partly owned by Rosneft, usually account for more than half of this volume.
What preceded it
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On 23 October, the United States imposed sanctions on Rosneft and Lukoil, Russia's two largest oil and gas companies. A number of their subsidiaries were also included in the sanctions list. The US sanctions were imposed "due to Russia's lack of serious commitment to the peace process".
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In addition, media reports said that India also wants to reduce imports of Russian oil in order to comply with US sanctions. Together with China, they are looking for alternative sources of supply — from the Middle East, Africa and Latin America.
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On 31 October, Reuters reported that India's largest refinery had purchased five shipments of Russian oil for delivery to an Indian port in December. That is 3.5 million barrels
