New Delhi: Indian Oil Corporation (IOC) has bought 3 million barrels of crude oil from Russia at a huge discount against the current international crude oil rates. Sources gave this information. Sources in the know of the matter said that the IOC has bought ‘Urals crude’ for May delivery at a discount of 20-25 dollars per barrel as compared to the dated Brent.
Western countries, including the US, have imposed many types of sanctions on Russia for the attack on Ukraine. Including buying oil and gas. US President Joe Biden, while talking to reporters recently, said that he would not buy oil and gas from Russia immediately. With this, Britain will also stop buying crude oil by the end of the year. After this ban by Western countries, Russia has started offering oil and other goods to India and other big importers at subsidized prices.
buy oil on your own terms
IOC has bought crude oil from Russia on its own terms. This includes the supply of crude oil by the seller to the Indian coast. This condition was put in place to avoid any complications due to restrictions in the arrangement of freight and insurance. India, which meets about 85 percent of its crude oil requirement through imports, wants to reduce its energy bill by purchasing crude oil at cheaper rates.
IOC had placed these condition
- Russia gives discount of 20 to 25 dollars per barrel to Indian companies
- Vendors themselves will supply crude oil to the Indian coast
- The company itself will bear the expenses and the insurance of the ship.
- Earlier, Petroleum Minister Hardeep Singh Puri told the Rajya Sabha on Monday that the country would evaluate Russia’s proposal to sell crude oil at subsidized prices only after considering aspects like insurance and freight required to buy fuel from non-conventional suppliers. Will do Significantly, India buys only 1.3 percent of its crude oil requirements from Russia.
