FX.co ★ US warns India against buying Russian oil

According to Reuters, the United States has warned India that significant increase in Russian oil imports could expose it to a "great risk" amid new sanctions against Moscow

However, "the US has no objection to India buying Russian oil provided it buys it at discount without significantly increasing from previous years", said the source who spoke on condition of anonymity.

It is evident that India has taken advantage of the steep discount for Russian oil following a wave of US and European sanctions on its financial system that has discouraged many traditional buyers from considerably boosting their purchases.

India has bought at least 13 million barrels of Russian oil since February 24, compared with nearly 16 million barrels in all of 2021.

India's purchases of Russian oil have jumped to an average of 360,000 barrels a day, which is four times the average amount India bought from Russia last year.

Currently, India purchases the oil volumes earlier bought by the EU.

India imports more than 80% of the crude oil it consumes. Western sanctions have shut off Russia's trade in the US dollars. Therefore, New Delhi and Moscow are currently discussing a payment arrangement using their own currencies.

Yesterday, the Economic Times reported that Moscow and New Delhi had finalized an alternative payments platform designed to facilitate bilateral trade amid sanctions. According to the report, the new platform could be operational within a week.