Indian Oil, Hindustan Petroleum strike deals to buy Russian oil at discounted prices

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India's public sector oil companies have bought 5 million tonnes of Russian crude oil at deeply discounted prices in the wake of the Ukraine conflict.  </p>
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The deals will help India to keep domestic fuel prices in check at a time when international prices of crude have skyrocketed. </p>
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While Indian Oil Corporation has bought 3 million tonnes of Urals crude from Russia at a discount of $20 to $25 per barrel, Hindustan Petroleum Corp Ltd has struck a deal for the purchase of 2 million barrels of the same crude, according to a Reuters report.</p>
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US-led western sanctions have led to a sharp drop in the demand for Russia’s oil leading to the discount.</p>
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However, some European companies such as Germany are still buying Russian oil and gas as they are critically dependent on these supplies. The UK has reduced its purchases of Russian oil.</p>
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The USA is itself, the largest producer of oil and has, therefore, banned the purchase of Russian oil as it was buying it only in small quantities.</p>
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Arranging for ships and insurance for picking up Russian cargoes has also become a problem due to the sanctions, but Moscow will help the Indian companies in transporting the crude, an oil company official said.</p>
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The purchases are being made at a time when the OPEC countries are refusing to increase output to feed the energy-hungry market and cool prices.  </p>
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<strong>Also read:  <a href="https://www.indianarrative.com/world-news/us-says-india-s-purchase-of-russian-oil-won-t-violate-sanctions-but-puts-wrong-side-of-history-rider-157501.html">US says India’s purchase of Russian oil won't violate sanctions but puts 'wrong side of history' rider</a></strong></p>