Due to US sanctions and Russia's demand for payment in Chinese yuan, India is looking for alternative sources of oil purchases.
What is known about India's search for an alternative to Russian oil
It is noted that while Russia remains the largest oil supplier to India, the country is also increasing its imports of oil and oil products from other countries.
Thus, the authors of the material emphasise that oil supplies from Saudi Arabia to India increased by 22% compared to the previous month, only in February of this year.
In particular, the most prominent Indian refinery, Reliance Industries Ltd, purchased the most enormous volumes of oil from Saudi Arabia since May 2020.
The article emphasises that Indian oil refining companies are not against increasing the volume of purchases of Russian oil. Still, for this, obtaining permission from the United States is necessary.
Russian oil prices are currently cheaper by only 2-4 dollars per barrel.
Discounts for Russian oil used to exceed $30, but double-digit discounts are unlikely to return due to competition from China.
What is known about problems with the supply of Russian oil to India
India's imports of Russian crude have surged since the full-scale invasion, as refiners took advantage of cheaper barrels that other buyers shunned.
At peak oil production last year, OPEC+ accounted for nearly half of the country's purchases, but new U.S. sanctions have recently halted some shipments.
In addition, Moscow requires payment in yuan due to increased control of some banks' use of dirhams for payments in the past few months, which also complicates the process for India.
