‘India not buying Russian oil in rupees’, says minister
New Delhi: The government on Monday clarified it is not considering buying crude from Russia, or any other country, using rupees.
India, which imports 85 percent of its oil needs, however, buys less than one percent from Russia as the cost of insurance and shipping of crude is prohibitive.
Union Minister of State for Petroleum Rameswar Teli informed Parliament that no proposal to buy crude via rupees is under consideration.
As the West has imposed sanctions on Russia after its invasion of Ukraine, Moscow has been hard hit in terms of dollar-based trading. Russia is trying to switch to other currencies, including the use of the yuan and rupee in deals with China and India.
“At present, public sector oil undertakings neither have any contract nor is any such proposal under consideration from Russia or any other country for the purchase of crude oil in rupees,” Teli said.
Indian oil companies are snapping up Russian oil through spot tenders taking advantage of deep discounts while other buyers, including the West, shun purchases from Moscow for its invasion of Ukraine. Russia has offered oil to India and other countries at a deep discount and also assured to foot the freight and insurance costs. If imported, Russian oil will come at a 25 percent discount compared to global prices..
India, which has refrained from outright condemnation of Moscow, has not banned the import of Russian oil so far.
Refiners in India rarely bought Russian oil in the past because of high freight and insurance costs.
Early this month, Union Petroleum minister Hardeep Singh Puri had said India was discussing with Russia the purchase of oil and evaluating issues related to insurance, freight, and payment.
India is the world’s third-biggest oil importer and consumer of petroleum and is exploring paying for Russian imports in rupees, but it has not yet planned a formal mechanism, reports said.
(VP)
