It was reported in many media and newspapers outlets that Russia has offered a discounted price on oil. BJP led government has decided to take the offer happily. Indian Oil Corporation Limited has agreed to import 3 million barrels of petroleum from a Russian oil company. While many western countries has imposed sanctions on Russia’s import trade due to its attack on Ukraine. However, India is free to buy crude oil from Russia.
India-Russia Present Alliance:
Russia and India both enjoy a “special and privileged strategic partnership”. It has been built on five distinct component which are politics, defense, civil nuclear energy, anti-terrorism co-operation and space.
At present moment, India’s petroleum and natural gas minister, Hardeep Singh Puri, has himself confirmed having discussions with Russia on crude oil purchases. Further, I want to mention that India is the third largest importer of oil from U.S.A, Middle-East and Russia.
India wants coal too!!!
India is also very keen to import coking coal from Russia. It is planning to double the import i.e. 4.5 million tonnes. This is a key ingredient in making steel and thermal coal, used primarily for electricity generation. India, in this matter also, doesn’t care about the sanctions imposed by Western countries and Japan. Further, India is still finding alternative ways for procuring coal like rupee-rouble trade because banks are not willing to open letters of credit.
Joe Biden to sanction India’s trade:
As soon as the news pouring of India’s crude oil trade with Russia, many US and European ‘experts’ started condemning India. This means that the US government should sanction India if India buys Russian crude oil. Famous journalist like Trish Regan even denounced India for purchasing crude oil in huge amounts. However, Joe Biden has come to a conclusion that they understand that India has a broad strategic partnership with India and they are okay with it. It is not beneficial to sanction a big economy with 1.3 billion people.
If INDIA buys Russian crude oil,
INDIA should expect to be sanctioned by the United States.
And, believe me, that won’t work out so well for India’s economy.
Right now: you’re with US or you’re against us. Simple.
— Trish Regan (@trish_regan) March 14, 2022
Conclusion: Why India Buys Cheap Oil
Now, that India Buys Cheap Oil from Russia has raised eyebrows. The impact of growing import bill for a country like India for an evolving economic recovery from the pandemic might be negative.
Further, Russia is not able to find buyers in Europe. Thus, India has secured a solid opportunity in this crucial time. This definitely suggests that Russia wants its ties with India to grow firm.
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