India may import from Russia around 15 million barrels of cheap crude oil in 2022, media reported.
On Tuesday, Indian Petroleum and Natural Gas Minister Hardeep Singh Puri said that New Delhi was negotiating with Russia the price and logistics of shipping discounted oil after Moscow was hit with a US ban on imports.
This will be on cost, insurance and freight (CIF) model, where the seller incurs the costs and pays the freight, including insurance charges.
Taking advantage of a Russian offer to sell its crude oil cheap and bear the cost of insurance and transportation, India may import as much as 2 million tonnes (mt), or roughly 15 million barrels of crude, from the sanctioned nation in 2022, Business Standard newspaper, reported.
According to the Business Standard newspaper, India will pay for the Russian oil either with rupees or with rubles.
This comes after reports that Indian Oil Corporation (IOC) bought 3 million barrels of Russian Urals from trader Vitol for May delivery.
Russia has faced harsh sanctions imposed by the Western nations over its decision to launch a military operation in Ukraine.