India seems to have a big advantage in the ongoing war between Ukraine and Russia. Wheat prices in India have exceeded the MSP. Countries like Egypt have approached India for import of wheat. The MSP of wheat is only Rs 2,050, while the market price has increased from Rs 2,250 to Rs 2,300. Apart from this, India is also going to get cheaper crude oil from Russia. Russia has decided to give 15 million barrels of crude oil to India this year. Apart from this, a discount of up to $ 35 per barrel is also being given on it. People with knowledge of the whole matter say that Russia wants to sell more and more oil to India because it is in difficult times due to restrictions imposed by Western countries.
India, Asia’s second largest oil importer, is one of the countries that has decided to increase oil purchases from Russia even amidst international pressures and restrictions. In fact, America and European countries have decided to reduce oil imports from Russia. In such a situation, Russia is busy looking for buyers of oil in Asia itself. Russia has high hopes especially from China and India. Both countries have not opposed Russia in many forums including the United Nations Security Council and distanced themselves from the resolutions brought against it.
The decision will be stamped in the visit of the Russian Foreign Minister
Russia has also asked India to facilitate the adoption of rupee-ruble payment system in the purchase of oil. This situation will be better for India and it will not have to spend from its foreign exchange reserves. However, this whole matter has not been sealed yet. Russian Foreign Minister Sergey Lavrov arrived in India on a two-day visit on Thursday. It is believed that during this time talks can be held on this issue. The process of purchasing oil from Russia will be done through Indian company Indian Oil. It is not yet known how much oil India will buy, but an agreement can be reached to import at least 15 million barrels.
Shares of petroleum companies rise, profit expected
Significantly, the news of buying oil from Russia has also increased the shares of oil companies. Shares of Indian Oil saw a rise of up to 2.3 per cent till 11 am on Friday. Apart from this, the shares of Hindustan Petroleum have also increased by 2.4%.
(includes input from Bloomberg)