India saves billions dollars with $112B Russian oil deal, ensuring cheap energy, reducing dollar dependence, boosting trade, and strengthening refining exports.
With this, India can get crude oil at cheaper prices which will help in dollar saving, energy security and strengthening of international trade. Despite the resentment of Western countries, India is taking this decision in its national interest.
There are several big reasons behind India purchasing so much crude oil from Russia:
India saves billions dollars getting cheap oil from Russia
Russia is selling its oil at cheap prices due to the sanctions of Western countries (like America and European Union).
India saves billions dollars is getting this oil at a discount, which is beneficial economically.
If India buys oil from spot market or OPEC countries, it will cost more.
Payment in rupees and other currency instead of dollars
An agreement has been signed between India and Russia, due to which oil payment is being made in currencies like Indian Rupee, Chinese Yuan and UAE Dirham instead of US Dollar.
This reduces India’s dependence on dollars and saves foreign exchange reserves.
Energy security
India imports 85% of its energy needs, so it is necessary to source oil from countries where the supply remains cheap and stable.
Building strong energy ties with Russia will provide future stability to India.
Ignoring America and Europe
Western countries wanted India not to buy oil from Russia, but India prioritized its national interest.
India clearly said that it will buy oil according to its needs, not under any pressure.
Benefit of refining and exporting
India refines oil not only for itself but also exports petrol and diesel to Europe, America and other countries.
India is also strengthening its refinery industry by purchasing cheaper Russian oil.
