Crude Import News Russian Crude Oil May Get Cheaper For India European Union Stopped 90 Percent Of Import
Crude Import News Update: To teach a lesson to Russian President Vladimir Putin, the European Union has taken a big decision to stop the import of crude oil. Under this decision, oil imports from Russia will be cut by 90 percent in the next 6 months. With this decision, the international prices of crude oil have started rising again and have reached $ 122 per barrel.
This decision of the European Union can benefit India and Russia may be forced to sell oil to India at a cheap price. Europe imports 25 percent of its crude oil and 40 percent of its natural gas from Russia. In such a situation, restricting oil imports was a difficult decision for most European countries. In particular, countries that are completely dependent on Russia for energy needs, they wanted to avoid doing so.
Russia did not pay attention to the decision of sanctions
The purchase of crude oil and petroleum products from Russia will be banned with the sanctions of the European Union, but the temporary exemption of pipeline crude will continue for the time being. This ban also includes Russian oil brought by sea. Russia has not given much attention to this decision of the European Union. Russia’s permanent representative to international organizations based in Vienna, Mikhail Ulyanov, said in his tweet, “Russia will find other importers.”
Action by the US and Europe is forcing Russia to increase supplies to interested buyers in Asia. In this, India is the largest market for crude coming out of western Russia. Russia has been offering cheap oil to India for a long time and is engaged in solving the problem of payment. At present, India can negotiate more with Russia on oil prices. Cheap crude oil will not only help India to keep inflation low, but will also help in saving foreign exchange spent on oil imports.
India has a better chance to get cheap oil
For the last few months, India has been buying crude oil from Russia at a lower price. This is the reason why India’s marine crude oil imports exceeded 48 lakh barrels in April. For the first time in April, Russia’s share in India’s total marine crude imports increased to 5 percent. It was less than 1 percent in 2021.
India is becoming increasingly sensitive to the rise in global oil prices. This is the reason that despite US sanctions and threats, India not only continued to import crude oil from Russia, but is also gradually increasing in it. Russia is a very old friend of India. Russia has helped India on many important diplomatic and strategic occasions. Also, most of India’s military weapons are Russian. Making that friendship stronger, India is now helping Russia by buying crude oil.
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