India buys Rosneft much cheaper under the “price ceiling”

India buys oil from russia much cheaper than the “price ceiling” implemented by the G7 countries.

The purchase of Rosneft at low prices will have a positive effect on both the Indian economy and the stabilization of oil markets, according to US State Department officials interviewed by Bloomberg.

The administration of US President Joe Biden will continue to discuss with government officials the issue of the purchase of russian oil by India. But for now, the government is satisfied with the fact that New Delhi is buying oil much cheaper than the “price ceiling” provides.

In recent months, India, which is dependent on imports, has taken advantage of the opportunity provided by the discount on russian raw materials. More than a year ago, India almost did not buy oil from russia, but now its market has become decisive for russian federation due to the closure of markets in the West.

But the ability to benefit from lower prices for India is currently problematic. According to the heads of oil refining and banking companies, additional checks and measures are now needed to prove that the country’s imports meet the $60 per barrel limit — and this could affect the volume of purchases.