A Russian oil revolution, but rising prices could scupper sweet deal

India is now buying almost 50 per cent of its imported crude oil from Russia and the amounts purchased are shooting up to new record levels every month.

But India’s Russian oil imports could be jeopardised by rising prices which will force us to pay more than the $60 per barrel that’s allowed under the Western sanctions regime. India has agreed to abide by the $60-dollar price cap placed by the G7 countries on Russian oil in the wake of the Ukraine-Russia war.

If prices go far above the $60-mark Russian crude may have to be brought here in what’s called the “shadow fleet” of anywhere between 100 and 500 ships that have been assembled by Russia over the last one year. However, many Indian banks which have international offices and clients may be forced to stay out of such transactions for fear of facing international sanctions. India has been getting a roughly $10 discount on its oil purchases from Russia.