The Minister of State says oil PSUs have no contract, nor are any proposals being considered by Russia
The Minister of State says oil PSUs have no contract, nor are any proposals being considered by Russia
India is not considering buying oil from Russia or any other country with Indian rupees, the junior oil minister told parliament on Monday after Western nations imposed sanctions on Russia over its invasion of Ukraine.
With Western sanctions hitting Russia’s dollar-based trade, the focus is on Moscow’s efforts to switch to other currencies, including the potential use of the yuan and rupee in deals with China and India.
“Currently, no deal has been signed by public oil companies, nor is such a proposal being considered by Russia or any other country to buy crude oil in Indian rupees,” said Minister of State for Oil and Gas Rameswar Teli.
An oil and gas exploration facility. | Photo credit: AFP
Indian companies are snapping up Russian oil through spotters and taking advantage of deep discounts, while other buyers are avoiding purchases through Moscow because of the invasion of Ukraine.
India, which has refrained from directly condemning Moscow, has not banned imports of Russian oil.
Refiners in India rarely bought Russian oil in the past due to high freight costs.
However, Oil Minister Hardeep Singh Puri said this month India is in talks with Russian authorities to buy oil and is considering issues related to insurance, freight and payment.
India, the world’s third-largest oil importer and consumer, is considering paying for Russian imports in rupees, but a formal mechanism has not yet been formulated, government and banking sources said.
An Indian government source said last week New Delhi welcomes competing offers for oil sales, including from Moscow, especially as global prices have soared.
