Russian oil discount shrinks 87% to $4/barrel as sellers game shipping, insurance to skirt G7 price cap - Times of India
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NEW DELHI: The love affair with Russian oil appears to be losing its charm for Indian refiners as discounts have shrunk to $4 per barrel from peaks of $25-30, with sellers going dark on shipping rates to cover the gap with benchmark Brent crude and skirt western price cap, people in the know told TOI. Russian crude now accounts for about 40% of India’s total oil imports, up from less than 2% in before the Ukraine conflict. Indian refiners began lapping up Russian crude as sellers began offering hefty discounts as Western buyers shunned those barrels as the US and the EU slapped sanctions on Russia , including its energy exports. Indian refiners buy Russian oil on delivered basis, wherein the seller arranges shipping and insurance, to avoid falling foul of the sanctions. This aspect became more important after the G7 slapped a price cap of $60 for seaborne Russian energy exports, making shipping or insurance — 60% controlled by European entities — difficult to obtain for o