With the heat of sanctions scorching on its administration, Russia talks with friendly nations including India to find common grounds on deliveries and payments. But, seemingly, Russia is also offering heavy discounts on its oil and commodities. Already China has been allowed to buy oil from Russia’s Surgutneftegaz without letters of credit payment guarantees.
According to a Reuters report, India is assessing offers from Russia to buy oil and fertilizers at a discounted price. Both countries are working on a Rupee-Rouble mechanism for payments and resolving shipping, insurance, and oil blend issues.
Indian economy is said to feel the heat due to the surging global oil prices and sanctions on Russia. So receiving Russian oil and other commodity inputs for domestic manufacturing would ease India’s situation.
In addition, India and Russia have been sharing long-standing trade and defense ties. However, India has chosen to remain neutral in the standoff between Russia and Ukraine. It decided to abstain from voting against Russia in the UN and urged both nations to end the war through dialogue.