India Seeks Less Than $70 Per Barrel Price For Russian Oil To Compensate For Risk Of Dealing With Moscow: Report

Amid the rising global prices of crude oil, India is said to be seeking deeper discounts on Russian oil to compensate for the risk of dealing with Moscow amid sanctions.

With the reducing demand from the European nations due to Russian invasion of Ukraine, the oil industry in Russia is under severe pressure.

India, which imports more than 85 per cent of its oil, is among the few remaining buyers of the Russian crude. However, New Delhi, which imports a minor fraction of its oil demand from Moscow, is also facing increased pressure from US to reduce oil supplies from Russia.

India is reportedly seeking Russian cargoes at less than $70 a barrel on a delivered basis to compensate for additional hurdles like securing financing for purchases in the high level talks between the two countries, people with knowledge of the matter were quoted in a Bloomberg report as saying.

The discussions between India and Russia on discounted oil comes as global benchmark brent is currently trading near $105 a barrel.

According to the report, state and private refiners in India have purchased over 40 million barrels of Russian crude since the invasion of Ukraine started in late February.

India's crude oil import from Russia is not sanctioned but tightening international restrictions in areas such as marine insurance and US pressure is making it much more difficult for New Delhi to continue trade with Moscow.