Indian Refiners Negotiate Russian Oil Purchases
23 Sep 2024
2 Min Read
CW Team
Indian refiners are actively negotiating to secure Russian oil supplies for the upcoming year, as confirmed by a government source on Thursday. This strategic move comes amid a backdrop where suppliers are primarily utilizing Russian insurance for crude priced above the $60 per barrel cap established by the G7, European Union, and Australia to limit Russia鈥檚 oil revenue post-Ukraine invasion.
As India鈥檚 top oil supplier, Russia plays a critical role in meeting the country's energy needs. Indian refiners, particularly private companies, have successfully signed annual contracts for Russian oil, while state refiners are opting for spot market purchases. The reliance on Middle Eastern producers remains significant, with discussions for term deals with these suppliers set to commence in December.
Oil Minister Hardeep Singh Puri reaffirmed India's intent to continue purchasing Russian oil from non-sanctioned entities due to competitive pricing. The shift towards using Russian insurers has enabled Moscow to navigate the price cap challenge, allowing sales above $60 per barrel without facing immediate sanctions.
The source highlighted the changing dynamics in negotiation positions, emphasizing that with global oil demand estimates being adjusted downward, Indian refiners might seek more favorable terms. Additionally, transactions for Russian oil are primarily conducted in Emirati Dirhams and US dollars, with historical precedents of payments being made in Rupees and Chinese Yuan for certain deals.
This complex landscape underscores the balancing act Indian refiners are performing, navigating international sanctions while securing vital energy resources at competitive prices.
Indian refiners are actively negotiating to secure Russian oil supplies for the upcoming year, as confirmed by a government source on Thursday. This strategic move comes amid a backdrop where suppliers are primarily utilizing Russian insurance for crude priced above the $60 per barrel cap established by the G7, European Union, and Australia to limit Russia鈥檚 oil revenue post-Ukraine invasion.
As India鈥檚 top oil supplier, Russia plays a critical role in meeting the country's energy needs. Indian refiners, particularly private companies, have successfully signed annual contracts for Russian oil, while state refiners are opting for spot market purchases. The reliance on Middle Eastern producers remains significant, with discussions for term deals with these suppliers set to commence in December.
Oil Minister Hardeep Singh Puri reaffirmed India's intent to continue purchasing Russian oil from non-sanctioned entities due to competitive pricing. The shift towards using Russian insurers has enabled Moscow to navigate the price cap challenge, allowing sales above $60 per barrel without facing immediate sanctions.
The source highlighted the changing dynamics in negotiation positions, emphasizing that with global oil demand estimates being adjusted downward, Indian refiners might seek more favorable terms. Additionally, transactions for Russian oil are primarily conducted in Emirati Dirhams and US dollars, with historical precedents of payments being made in Rupees and Chinese Yuan for certain deals.
This complex landscape underscores the balancing act Indian refiners are performing, navigating international sanctions while securing vital energy resources at competitive prices.
Next Story
MoHUA Plans New Role for Smart City SPVs
In a significant policy move, the Ministry of Housing and Urban Affairs (MoHUA) has issued an advisory encouraging the continued use and repurposing of Special Purpose Vehicles (SPVs) formed under the Smart Cities Mission (SCM). This marks a step toward sustaining urban transformation by leveraging institutional capabilities and infrastructure developed over the past decade.Initiated in 2015, the Smart Cities Mission introduced a new era of urban planning in India, with each of the 100 selected cities forming SPVs under the Companies Act, 2013. These entities, jointly owned by state government..
Next Story
ADB Approves $110 Million Loan to Boost Skills in Gujarat
The Asian Development Bank (ADB) has approved a USD 109.97 million (Rs 9.27 billion) results-based loan to support Gujarat鈥檚 efforts to become a global industrial hub by developing a future-ready, skilled workforce.The funding will back the Gujarat skills development programme, led by the Department of Labour, Skill Development and Employment in collaboration with Kaushalya: The Skill University (KSU). The initiative aims to equip the workforce with advanced, industry-aligned skills to meet rising employment demand in high-growth sectors.According to ADB, the programme seeks to strengthen in..
Next Story
SDAL Tests Rudrastra UAV and Bhargavastra Defence System
Solar Defence and Aerospace Limited (SDAL) has successfully completed a key flight test of its indigenous Hybrid VTOL UAV Rudrastra at the Pokharan Firing Range, aligning with Indian Army performance benchmarks for mission adaptability, high endurance, precision engagement, and vertical take-off and landing (VTOL) capability.The trial marks a notable achievement in India鈥檚 Aatmanirbhar Bharat initiative, underscoring advancements in home-grown military technology. The Rudrastra UAV demonstrated a mission radius exceeding 50 km with uninterrupted video relay, a total operational range of over..
