INVC NEWS
Moscow : Russian oil is about to get hit due to sanctions due to war in Ukraine and India’s payment system. In fact, the sanctions imposed on Russia by America and European countries can create trouble for India. The matter of payment is becoming so big that Russia is no longer in a position to supply oil for a long time.
According to the report, Russia no longer wants to supply oil to India in dollars. Oil is already being received from Russia at a discount. According to sources, the price of $60 per barrel has been fixed by the G7 countries. After this, the challenge before India is very big and everyone’s eyes are fixed on what will be the result of this situation in the coming days.
It has been said from sources that India does not want to pay in Chinese currency Yuan or Euro. If banks make payments in dollars, then the price of crude oil fixed by the G7 countries will be violated.
Because of this banks and traders do not want to be involved in it. Payment in Rupees is the only option. But Moscow is already grappling with a growing rupee imbalance due to India’s imports of defense equipment. This situation is becoming very difficult. Faced with Western sanctions after the war in Ukraine, Russia found a big market for its crude oil in India.
Russia offered oil to India at a huge discount. As a result, the import of crude oil from Russia to India increased by about 13 times in the year 2022-23. Where it was $ 2.5 billion in the year 2021-22, it has increased to more than $ 31 billion in 2022-2023. Russia has now overtaken traditional oil suppliers like Saudi Arabia, UAE and Kuwait.
Now it has become the largest supplier of oil to India. If sources are to be believed, the oil that India was getting was largely below the prices fixed by the G7 countries. India is able to pay for most of the oil in dollars. But oil priced below $60 a barrel is now mostly gone. One reason is that Russia has reduced its rebate on oil due to rising demand from China.
The second is that the lower grade of Eurail, which was available at a cheaper cost, is now in short supply and India is being forced to go higher. Sources have said that officials from the Ministry of External Affairs, Ministry of Finance and Ministry of Petroleum and Natural Gas are deliberating on the situation and ways to best handle it.
