Russia India oil deal explained India open to buying crude oil from Russia on discount

For the past few months, there has been a conflict between Russia and Ukraine, which has affected the global stock market and trade.

Ever since Russia started its invasion of Ukraine, Western countries such as the European Union, the UK, and the US have imposed many economic sanctions on Russia.

Russian financial institutions have been removed from the SWIFT international payment system, making to and from transactions difficult.

Apart from this, Russia is also a huge global oil exporter and plays a significant role in its economy.

The value of the Russian currency Ruble has also fallen due to these reasons.

All these geopolitical tensions can lead to a crunch in the crude oil supply, due to which the prices of oil have also increased sharply in the last few weeks.

And this is not a good sign for India because India imports more than 80% of its total oil requirement and an increase in oil price will raise the fiscal deficit and inflation levels in India.

So now in this whole situation, Russia is looking for new buyers to export its oil on one hand, and on the other hand, India wants to buy oil at a low price to reduce its increasing energy bill.

According to some reports Russia is offering crude oil and other commodities to India at heavy discounts.

Russia-India oil deal: explained