Russia offers cheaper oil to India? Akong: Thats true

When Russia the West are locked in an energy price tussle, India seems to be the target of both sides. Recently, Indian media reported that Russia offered to supply oil at a lower price to India in exchange for its support. In this regard, Russian president press secretary, Kremlin spokesman Dmitry Peskov 12 denied.

Moscow has told New Delhi that it is willing to offer oil to India at a lower price than before in return for India supporting the G7 proposal to impose price limits on Russian oil, the Business Standard newspaper reported Tuesday, citing Indian officials.

Since late June, Iraq has reportedly been competing with Russia for oil supply at an average price of $9 per barrel lower than Russian oil, leading to a sharp shift in the country's oil market in favor of Iraq Russia falling to third place on India's list of oil importers.

Against this backdrop, Indian officials told the paper that the "substantial discount" offered by Russia was better than that offered by Iraq in the past two months. A foreign ministry official said a decision would be made later after talks with all partners.

Another foreign ministry official hinted that New Delhi was likely to be inclined to continue buying energy Moscow if it entered the discount competition further. The official said that given the complex global situation the volatile internal situation in Iraq, it was necessary for India to establish a stable alternative crude oil supply mechanism outside the West Asia region as well.

Screenshot of India's Business Standard report

However, the Russian side denied the report on December 12. Russian presidential press secretary Kremlin spokesman Dmitry Peskov told the media that the report was " true," RIA Novosti reported.

Ria Novosti quoted Russian President Vladimir Putin as saying that Russia will supply anything abroad against its own interests when attending the Eastern Economic Forum on Wednesday. Mr Putin also criticised moves by some countries to cap Russian energy prices as a "stupid decision" that "if someone tries to implement it, then it will benefit those who took the decision".

Screenshot of RIA Novosti report

India, the world's second largest oil importer, has sharply increased its imports of Russian oil since February's conflict with Ukraine. Rosneft's share of India's oil imports jumped to 18 per cent in August 1 per cent before the war 24 per cent in June, before Iraqi oil fully entered the fray.

According to India's Business Standard newspaper, as of August, the price of Russian crude oil was $6 a barrel below India's average import price for total crude oil. According to Quartz, every barrel of Russian oil sold to India so far is $30 below the overall price.

Photo: India's Business Standard

The G7 announced on Tuesday that it had reached an agreement to impose price limits on Russian oil, with crude oil prices to be capped December 5 refined oil prices to be capped February 5 next year, but the detailed implementation plan will be finalized later.

India's Minister of Petroleum Natural Gas Puri, responding to a reporter's question on whether India would participate in the price fixing, said on Friday that India would "consider very seriously" the proposal. He added that it was unclear which countries would take part in the proposal what impact such a move would have on energy markets.

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Source: Observer Network