India Mulling To Buy Discounted Russian Oil, Commodities: Report

New Delhi: Amidst crippling sanctions imposed by the West on Russia following the attack over Ukraine, India is considering to take up a Russian offer to purchase its crude oil and other commodities at discounted prices with payment via a rupee - ruble transaction.

India imports 80 percent of its oil needs and it usually purchases about 2% to 3% of its supplies from Russia. But with crude prices up 40% this year, the government is mulling to increase this, if it can help reduce its rising energy bill.

''The government has some pending issues like tanker, insurance cover and oil blends that needs to be resolved. The government will accept the Russian offer once the issues are resolved,'' Reuters quoted an Indian official as saying.

Furthermore, the official said that work was underway to set up a rupee- ruble trade mechanism to be used for oil and other goods.

However, neither the officials disclose the amount of oil that was offered by the Russians, nor did they reveal what the discount was.

The Reuters report, also informed that some international traders have been avoiding Russian oil amidst fears of western sanctions, but the Indian official said sanctions did not prevent India importing the fuel.

Amidst relentless pressure by the West, Moscow has urged friendly nations to maintain trade and investment ties. 

It is worth noting that India and Russia share robust defense ties. Also, a bulk of India's military hardware is of Russian origin. The Indo-Russian bilateral ties is not only confined to defense co-operation.

The erstwhile Soviet Union had supported India in the United Nations in the past and they had come to New Delhi's rescue in various occasions. 

So, India had abstained from a vote at the United Nations condemning the invasion, although New Delhi has called for an end to the violence.

Also read: Russia Warns Crude Oil Prices Could Jump To $300/Barrel If West Bans Oil Imports

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