The source said:
- U.S. has no objection to India buying Russian oil provided it buys it at discount, without significantly increasing from previous years
- Some increase is allowed
Since February 24, India has bought some 13 million barrels of Russian crude, which compares with 16 million barrels for the whole of last year.
Earlier this month, the FT reported, citing data from Kpler, that Indian purchases of Russian oil had jumped to an average daily of 360,000 barrels, which was 4 times the average amount India bought from Russia last year.
Alex Booth, head of research at Kpler, told the FT:
- Already committed oil cargoes from Russia that can't find buyers in Europe are being bought by India
- Exports to India surged in March before any official announcement by New Delhi
The Western sanctions have shut off Russia's trade in U.S. dollars, but, according to reports, New Delhi and Moscow are discussing a payment arrangement using their own currencies.
Earlier today, the Economic Times reported, citing unnamed sources, that Moscow and New Delhi had finalized an alternative payments platform aimed at facilitating bilateral trade amid the sanctions.
According to the report, the new platform could become operational within a week.
Author: Irina Slav