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'There is no payment problem': India names alternative reason for Russian oil import drop

'There is no payment problem': India names alternative reason for Russian oil import drop Photo: India names the reason for reduction in oil purchases from Russia (Getty Images)

Indian oil refineries have reduced the import of oil from Russia as the discounts on shipments were deemed unattractive, according to India's Oil Minister Hardeep Singh Puri.

"There is no payment problem," the minister stated.

He did not mention the price cap on oil from Russia, previously imposed by the US and G7.

According to Puri, Indian oil refineries have cut back on importing Russian oil due to unattractive discounts.

India aims for uninterrupted oil supply

Bloomberg notes that India is one of the largest importers of crude oil in Asia, and after the Russian invasion, it became a significant buyer of Russian cargoes, with oil refineries accepting shipments avoided by processors in Europe and the United States.

In New Delhi, it has been stated that such a position makes sense considering the country's immense energy needs.

"India’s leadership has only one requirement: that the Indian consumer gets the energy at the most economical price, without disruption," Puri said.

He added that the country requires 5 million barrels of oil per day, of which 1.5 million come from Russia, emphasizing the absence of payment issues.

Russian oil exports

Revenue from oil exports forms the foundation of the Russian budget and enables the support of Moscow's military economy.

Simultaneously, the Indian route, one of the most profitable Russian oil trade routes since the introduction of Western sanctions, faces a serious problem due to payment issues in a currency other than the dollar, with no short-term solution.

Later, Bloomberg reported that the import of crude oil from Russia to India declined due to payment problems, exacerbated by Western sanctions.