Washington has warned New Delhi of serious risks if it expands fuel imports from Russia. So far, India has not faced direct sanctions. Yet, local commercial companies could be at hazard.
“A significant increase in Russian oil imports by India could expose New Delhi to a ‘great risk’ as the United States prepares to step up enforcement of sanctions against Moscow for its invasion of Ukraine,” a US administration official said. It is to be noted that the US does not want India to stop buying Russian oil at all. "The US has no objection to India buying Russian oil provided it buys it at discount, without significantly increasing from previous years." In other words, Russia is in no position to set terms for its remaining energy buyers, which means they could now ask for a big discount. India has recently purchased Russian crude at a price of $60 per barrel although its market value has been above $100. Its cost is now expected to drop further.
A source with knowledge of the matter says Russia has offered India to purchase Urals crude at a massive discount – up to $35 dollars per barrel – amid shrinking demand from other buyers. Since mid-February, Indian refineries have expanded imports of Russian oil at reduced prices. In just a month, they bought 13 million barrels of Russian crude. For comparison, 16 million barrels were imported in 2021.
