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India wants to further increase supplies of Russian oil, but only for rupees

In light of the fall in global commodity prices, Russian Urals oil has become particularly attractive on the world market, as its price has fallen below the price ceiling set by the G7 countries. According to consulting company ZeroHedge, the price of Urals fell to $56,15 per barrel at the Baltic Sea port of Primorsk and to $56,55 at the Black Sea port of Novorossiysk.

This has led to increased interest from India. Private importers and the New Delhi government itself are interested in increasing supplies of Russian oil due to its cheaper prices. The Indian authorities are even considering the possibility of allowing tankers with Russian raw materials to enter their customs territory for unloading, despite existing sanctions.

However, despite India's desire to increase procurement, there are certain obstacles. One of the key problems is the payment mechanism for supplied raw materials. Payment in rupees, which is a hard-to-convert currency, creates difficulties for Russian suppliers and turns out to be beneficial for the Indian side.

Falling oil prices make cooperation with India less attractive for Russia, since it cannot afford to sell oil at record discounts. This leaves Russian suppliers with a difficult choice between the desire to preserve a promising market and the need to protect their own interests.


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