Indian Oil Corporation deals with Russian crude at a substantial discount
The purchase, made via a trader, is the first since Russia’s invasion of Ukraine on February 24. Which prompted international pressure to isolate Putin’s administration. According to sources, the Indian Oil Corporation (IOC), the country’s largest oil company, has bought up to 3 million barrels of crude oil from Russia at a steep discount to casks international prices.
According to sources familiar with the situation. IOC purchased Urals crude for May delivery at a USD 20-25 per barrel discount to dated Brent. Unlike the sanctions imposed by the US on Iran over its contentious nuclear program, oil and energy trade with Russia has not been prohibit.
Moreover, according to them, international payment systems are available to settle any purchase made from Russia.
This was not the case for Iran, which was cut off from the SWIFT international money and secure transfer system. Companies or entities that invest in or buy oil from Iran have also been sanction. India, which imports 85 percent of its oil, is looking to reduce. Its spiraling energy bill by purchasing from wherever it can get it at a lower price.
“Let me reiterate that in a situation like the one characterized by the pandemic in the last two years. And in the last few weeks by a war or military action taking place between Russia and Ukraine,” he had said.
The minister stated that he had met with Russian government officials.
“Discussions are currently taking place. Several issues must be addressed, such as how much oil is available in Russia, new markets, or new suppliers who may enter the market. There are also issues with insurance, freight, and various other issues, including payment arrangements,” he had stated.
