New Delhi, India: Although the terms of discount aren't finalized yet, India will continue to buy "cheap oil" from Russia, a senior government official associated with the operation said on Wednesday.
The official further added that currently India, the world's third largest oil importer, pays more than $100 for a barrel of crude oil.
Amid the rising tension in Europe and growing sanctions on Russia, conventional payment routes could be blocked. So to facilitate rupee-rouble transaction, India is currently working on a trade mechanism that'll suit both parties, the official said.
So far, nothing has been finalized and all possible payment methods are being discussed.
Some international traders have avoided buying Russian oil due to disruption in payment systems and shipping, even though Russia's oil exports have not to date fallen under Western sanctions.
The official also mentioned India’s increasing dependence on coal due to rising power demand and that state-run Coal India will produce more coal in the coming months.
Source: Reuters
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