Russian oil sold to India below the price cap of $60

After Europe's ban on oil, this month Russia has sold its crude oil at a huge discount. Ural Crude oil has been sold to India at a very low price after the $60 price cap imposed on Russian oil by western countries.

The European Union banned the import of Russian crude on December 5, after which the G-7 countries Canada, France, Germany, Italy, Japan, Britain and the US imposed a price cap of $ 60 per barrel on Russian oil. The intention behind imposing this price cap on Russian oil was to hit the Russian economy heavily.

But breaking this, Russia has increased its trend towards alternative markets, especially Asia. Russia aims to cash in on Asia as an alternative market and sell around one million barrels of oil per day.

Russia bluntly on the decision

However, Russia says that it does not accept this price cap. Russia has bluntly said that it will not sell its oil according to this price cap, then of course it should reduce its oil production. Due to this decision of Western countries, Russia is selling its oil at very low prices.

Since Russia's invasion of Ukraine in February this year, India has emerged as the largest buyer of Russian crude oil.

Freight cost increased

The current situation has put pressure on Russia's western ports as the shortage of ships has increased freight costs. The transportation cost has increased from $ 11 per barrel to $ 19 per barrel, whereas in February it was less than $ 3 per barrel.

India is the second largest buyer of Russian oil in Asia and has been buying oil from Russia at a huge discount since the start of the war.

Also Read: Uttar Pradesh: 5 arrested in Lucknow for lowering electricity metre reading

Keep watching our  Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER.