Reuters believes that oil payment problems in Russia may push sellers to accept payments in rupees.
India’s state-owned Bank of Baroda has since April stopped paying for Russian oil sold above the price limit of $60 per barrel set by the EU, the US and Australia. On Tuesday, April 4, Reuters reported, citing its sources.
The media said that some Indian oil refiners paid in United Arab Emirates dirhams for Russian oil at prices above $60 per barrel through the Bank of Baroda, mainly to traders from Dubai.
Last month, a state-owned lender said it would not pay for Russian barrels bought above the limit.
Prices for Russian sweet crudes such as Sokol and ESPO Blend, which have traded at around $60 a barrel in recent weeks, could raise the price ceiling due to rising global oil prices prompted by OPEC+ decided on Sunday to cut the victim.
Individual refineries, mostly private operators, pay dirhams for Russian oil through private lender Axis Bank, the news agency said.
Problems with the arrangements for Russian oil could push sellers to accept payments in rupees, even for a barrel that exceeds the price ceiling.
An oil ministry source told Reuters last month that India does not recognize the price cap imposed by the West on Russian oil.
In the past, before the war in Ukraine, Indian refiners rarely bought oil from Russia because of higher transportation costs. In the wake of Western sanctions against Moscow, Indian refineries have sharply increased discounted purchases.
Recall that the largest Russian state-owned oil company Rosneft and the Indian Oil Corporation signed an agreement on a significant increase in oil supplies to India and its various varieties.
It should be noted that Russia had previously announced an increase in oil supply to India by ten times. The aggressor country redirects most of its energy resources to the markets of “friendly countries”.
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Source: korrespondent
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