Due to global sanctions on Russia, many countries including India and America caught on the edge of expensive crude, have become a big challenge in front of many countries to handle the deteriorating economy. Although Russian companies have offered to give crude oil at a discount to many countries including India, it is too messy.
It is also feared that America and Western countries will be upset. Oil and gas exports from Russia are not subject to sanctions, but crude is at a 13-year high of $140 as voluntary buyers refrain from buying Russian oil.
Meanwhile, the US has banned the import of oil from Russia. President Joe Biden made an announcement in this regard on Tuesday. At the same time, Britain has announced to end dependence on Russian oil and gas imports by the end of 2022. Prime Minister Boris Johnson said that a task force would be formed in this matter, which would find alternative suppliers.
Saudi Arabia is exploring the possibilities of oil deals with Venezuela and Iran. For this, America has sent officers to Venezuela. So far, relations between the US and Venezuela have been poor. White House press secretary Jen Psaki said crude could be taken from Iran despite US sanctions. Oil is also involved in the talks on the nuclear deal.
The oil can become a lifeline for troubled Russia. Russia produces 8 million barrels of oil daily and supplies it to 80 countries of the world. Europe accounts for 25 percent of its oil consumption and 15 percent in China. Russian consumption is only 2% in India. Russian Deputy Prime Minister Alexander Novak said that the ban on Russian oil will cause a crisis in the world economy.
It will not be possible to replenish its supply in the European markets so soon. On the other hand, Russian Deputy Prime Minister Alexander Novak has warned that the price of crude could reach $ 300 a barrel due to the war. Petrol prices in the US, already battling the highest inflation in 40 years, are at their highest in 14 years.
Russian companies are offering to sell crude to many countries including India by giving 25-27% discount. However, there are many problems in bringing it to India. After expenses including logistics, the cost will be the same as it is now.
