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Updated March 24th, 2022 at 23:47 IST

India likely to buy 15 mn barrels of oil from Russia by 2022 end, says Russian official

Due to the sanctions imposed by many countries, Russia is exploring opportunities for its oil products elsewhere and India is open to leverage on Russian oil

Reported by: Abhishek Raval
India
IMAGE : AP/PIB | Image:self
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Russia is exploring greener pastures elsewhere for the country's oil products, with sanctions from multiple countries narrowing the scope to sell the country's oil exports.

Now as per a report in the Business Standards, it is estimated that India, which relies heavily on imports for its oil requirements, can buy up to 15 million barrels of oil from Russia by the end of 2022. "The Russian IT companies are also looking forward to leveraging the opportunity of providing an Artificial Intelligence-based road safety network," Russian News agency TASS quoted Head of the operational department of the Russian trade mission in India, Evgeny Ostapkevich.

Sanctions imposed: Russia can move oil supplies to India

Expressing the possibility of potential oil purchase by India, Ostapkevich said, "Taking into account the refusal of a number of countries to purchase Russian oil products, opportunities are opening up for Russian oil companies to increase the volume of supplies," he said. "It is reported that India may buy up to 15 mln barrels of oil from Russia before the end of this year," 

Apart from oil, Evgeny Ostapkevich said, the Ministry of Transport in India can also work with Russian IT companies to develop a digital strategy to build an Artificial Intelligence based road network with enhanced safety features. 

Sanctions on Russia: India to store oil

The Rupee - Rubles channel can be used to accept payments, as the channel for settlements in national currencies of Russia and India exists and works. "I can say that the rubles-rupees channel really works. Colleagues from Sberbank’s branch in India confirmed it to me," Evgeny Ostapkevich said, as per TASS. While the central bank of India is still not accepting funds from Russian banks, Evgeny Ostapkevich was hopeful of the resumption of direct currency transactions, "This is a temporary phenomenon. The negotiations are underway," he added. 

Although India imports less than 1% of its oil imports from Russia, in the last few weeks as Russia has considerably lowered the price of crude amidst sanctions coupled with a high inflation scenario emerging in India as petrol and diesel prices go up, Indian Oil Corporation and HPCL has purchased 5 mn barrels of Russian crude. 

It is pertinent to note that India imports almost 85 percent of its crude oil requirements and most of it comes from the Middle-East. America’s share is around 7 percent.

IMAGE : AP / PIB

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Published March 24th, 2022 at 23:47 IST

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