Russia intends to sell crude oil to India at a sharp discount or settle directly in rubles and rupees

Since the sanctions imposed on Russia by Western countries after the outbreak of the Russian-Ukrainian conflict have reduced the demand for Russian crude oil in other regions, Russia has offered to sell crude oil
directly to India at a sharply discounted price.

According to people familiar with the matter, Russia has offered to supply flagship Urals crude oil at a price discount of up to $35 per barrel relative to the price before the Russian-Ukrainian conflict, in order to attract India to increase purchases
.
Since the conflict, the overall price of Brent crude oil has risen by about $10, which means that Russia is offering a price that is more
than the current price decline.

Russia wants India to start with 15 million barrels under this year's contract, the people said, adding that the talks were taking place
at the government level.

Since the Russian-Ukrainian conflict, India has been buying cheap Russian crude oil
on a large scale.
According to industry data, about 6 million barrels of Russian crude oil have been shipped to India since the beginning of this month and are expected to arrive in early April, which is equivalent to half
of the total amount of crude oil shipped from Russia to India last year.
The International Energy Agency (IEA) disclosed in mid-month that Russian Urals crude oil discounts reached record levels
.
Industry analysts believe that India will continue to buy low-priced Russian crude oil
in the future.

However, because Russia is sanctioned by the United States and its allies, there are problems
with how India will pay the purchase price to the Russian side.
The analysis believes that during Russian Foreign Minister Sergei Lavrov's visit to India, the two sides will discuss how to use rubles and rupees directly, or pay
by anchoring third-party currencies.

The two sides are exploring the transport of crude oil through the port of Vladivostok Port in the Russian Far East to avoid possible obstacles
when transporting through the Baltic Sea.
Such a shipment could allow crude oil to reach refineries
on India's east coast in less than 20 days, people familiar with the matter said.

In addition, India seeks to push for more exports of medicines, engineered products and chemicals to Russia to narrow the trade deficit
caused by the purchase of crude oil and weapons.