Russia is offering India big discounts on the direct purchase of oil as sales to other nations dip following stringent sanctions over its invasion of ukraine. Russia is willing to sell high-grade oil up to $35 per barrel – which could increase to $45 per barrel after the latest surge in global prices – and wants India to buy 15 million barrels in the first deal. Russia has also offered rupee-ruble-denominated payments using its SPFS financial messaging system – since Moscow has been banned from SWIFT – that could make trading more attractive for India.
The offer comes a day after foreign minister S Jaishankar, in talks with British foreign secretary Liz Truss, firmly defended India’s decision to buy discounted Russian oil – a move criticised by the United States and the United Kingdom. Jaishankar pointed out Russia sells more to European nations than India and that India welcomes competitive offers to meet burgeoning domestic demand.