Indian oil company set to buy 3 mn barrels of Russian crude oil at discount

Mar 16,2022

India's state-owned Oil Corporation (IOC) has made a contract to buy three million barrels of crude oil Russia offered at a steep discount on prevailing international rates in the first purchase since the Russian invasion of Ukraine.

People familiar with the matter said IOC bought Urals crude for May delivery at a discount of USD 20-25 a barrel to dated Brent, reports New Delhi correspondent.

As the US and other western nations slapped sanctions on Russia, the latter has begun offering oil and other commodities at discounted prices to India and other large importers.

IOC made the purchase on modified terms that require the seller to deliver it to the Indian coast so as to avoid complications that sanctions may lead to in arranging shipping and insurance.

Nearly 85 percent of India's oil requirement is met through imports and the country is looking to buy from anywhere it can get at cheaper rates. India buys just 1.3 per cent of all its oil needs from Russia.

India's Oil Minister Hardeep Singh Puri had on Monday told the Rajya Sabha that the country will evaluate the Russian offer to sell crude oil at discounted prices after considering aspects such as insurance and freight required to move the fuel from the non-traditional supplier.

The minister said he has had discussions with the Russian government officials.