Bloomberg: India Is Looking For Replacement For Russian Oil

Because of sanctions.

Due to sanctions by the United States of America and the requirement of the Russian Federation to pay in yuan, India is gradually moving away from Russian oil.

Bloomberg reports this.

Despite the fact that Russia still remains the main supplier of oil to India, the country is now developing a trend towards increasing imports from other countries.

In particular, shipments from Saudi Arabia this month increased by 22% compared to January. Thus, the largest private Indian refinery Reliance Industries Ltd. bought the largest volume of Saudi oil since May 2020, according to Kpler data.

It is noted that Indian oil refiners would not be averse to taking more Russian oil, but in order to increase purchases again, they need US permission to purchase.

The price of Russian oil is now cheaper by only 2-4 dollars per barrel. Previously, discounts for Russian oil exceeded $30, but double-digit discounts are unlikely to return due to competition from China.

India's imports of Russian oil surged after the full-scale invasion as refiners took advantage of cheaper barrels that other buyers were avoiding.

At its peak last year, OPEC+ producers accounted for about half of the country's purchases, but new U.S. sanctions have recently stopped some shipments.

In addition, Moscow is demanding payment in yuan due to increased scrutiny of some banks over the use of dirhams for payments over the past few months, which also complicates the process for India.