India may purchase fuel at discounted rates from Russia, inform senior

New Delhi/Moscow: Russia, tormented by sanctions imposed by the United States and its allies, has proposed to sell fuel to India at concessional rates. India is preparing to accept the proposal when the fuel rates have sky-rocketed; some officials have given such indications. As per these officials, banks, Rupee-Ruble exchange rate and other matters are finalised. But there is a strong possibility of an intense reaction from the United States.

India has adopted a patient and cautious stand since the outbreak of the Russia-Ukraine conflict. India avoided voting against Russia in the UN Security Council, respecting the traditional relations with Russia. The United States is upset over this and is still trying to pull India on its side. But India has not paid any heed to the US efforts. India has adopted a firm stand regarding the harsh sanctions imposed by the United States and its allies against Russia. India said it would accept sanctions if set by a summit organisation like the United Nations. Still, the sanctions imposed by individual counties will not be binding on India. Therefore, it is evident that India will not respect the sanctions imposed by the United States against Russia. Instead, India will attach more importance to traditional ties.

Currently, the crude oil rates are at a level of $110 per barrel. They may flare up to $150 per barrel soon. This crude oil price flare-up will directly impact India’s economy, which depends on imports for 80% of its oil requirement. In this scenario, the Russian proposal for the supply of crude oil at concessional rates becomes very attractive. It has been observed that the fuel import bill for the first nine months of this year is $84.2 billion. It is said that the fuel bill will cross $100 billion by the end of this financial year.

In this scenario, fuel supply at concessional rates comes as a major relief. Therefore, India seems to be seriously thinking about the Russian proposal. This will further strengthen Indian relations with Russia. Before this, the United States had threatened to impose sanctions against India following the purchase of the S-400 air defence system from Russia. But India executed the deal for the air defence system without paying any heed to the US sanctions. India may purchase fuel from Russia without worrying about US sanctions. Moreover, certain countries in the Middle East have replicated India’s neutral stance on the Ukraine issue, bothering the United States. Against this background, if India goes ahead with purchasing fuel at concessional rates from Russia, it could impact Indian relations with the United States.