India may soon sign a deal with Russia for 3.5 million barrels of crude oil at deep discounts with payment via a rupee-rouble transaction, according to reports.
As a part of the deal, Russia will also take care of shipping and insurance for delivering the crude to India, sources told Outlook Business.
India depends on imports for about 80 percent of its oil needs, with 3 percent of that coming from Russia. India’s oil and petroleum imports from Russia amount to nearly $1 billion, Alexander Novak, Russia’s deputy prime minister, said in a statement on Friday.
Reuters had reported earlier that Indian officials were in talks with Russia to import crude oil at a discounted price.
Meanwhile, the White House earlier on Tuesday said if India were to take up the Russian offer of discounted oil, it would not violate sanctions deployed by Washington.
Oil minister Hardeep Puri on Monday had told the Rajya Sabha that India was looking into a Russian offer of discounted oil.
A final decision on the issue is expected over the next few days with other options also on the table.