Report: India may accept Russian offer to buy oil at cheaper rates

In the Russia-Ukraine war, there might just be positive news for India. According to a report by Reuters, two Indian officials have said that Delhi might accept crude oil at cheaper prices from Moscow as a key trading partner. This statement has come out in the backdrop of rising sanctions being imposed by western countries on Russia.

Russia, reportedly, is offering oil to India at heavily discounted prices. India and Russia are trying to establish a separate rupee-rouble mechanism to facilitate trade. Once the paperwork related to insurance and pipeline is completed, India might accept the offer, Reuters reported.

The western countries, especially the USA, have distanced themselves from Russia in recent weeks. But for India, the situation is different. According to a report by SIPRI, India is one of the largest importers of weapons in the world and Russia is India's largest supplier of weapons. In the last five years, 46 per cent of the country's imports came from Russia alone.

As mentioned in Reuters, India has a heavy dependency on oil imports too. Almost 80 per cent of its oil needs are imported. With the prices of crude oil rising exponentially in the last few weeks, the government may look at the sources of cheap oil. The deficit and inflation rates in the country have been more than the upper limits fixed by the government.

India has so far abstained from voting at the United Nations (UN) against Russia for its aggression on Ukraine. The west has understood India's position as India continues to feel pressure from neighbouring China.