India is likely to accept Russia’s offer for cheap crude oil. The recent sanctions imposed on Russia in the wake of its invasion of Ukraine have dealt hurtful blows to its economy. The United States of America has banned all energy imports from Russia while UK and USA are in phasing out Russian imports.
Under such circumstances, Russia has offered to sell oil to India at a high discount. As of now, it appears likely that India would happily embrace this offer. Readout this article to know more about the sanctions imposed on Russia in the wake of the Russian invasion of Ukraine and the offer made by Russia to India.
Why Are The Oil Prices So High?
During the pandemic, global demand for oil suffered a major blow due to the lockdowns imposed in various nations across the world. To counter this and minimize their losses, the OPEC or Organization of Petroleum Exporting Nations decided to curtail the supply of oil to inflate prices.
As the pandemic recedes, they are gradually increasing the global oil supplies. However, this has caused international global oil prices to soar dealing a heavy blow to almost all economies across the world. The Russian invasion of Ukraine has further exacerbated the situation as Russia is also one of the major oil suppliers in the world.
Why is India Likely to Accept Russia’s Offer?
India, too, is troubled with the rising oil prices and the consequent ripple effect. Thus, it is likely that India would accept this lucrative action from Russia. Furthermore, the United States id America has also clarified that they would not impose sanctions on India if it goes ahead with this purchase.
However, it has cautioned India against accepting the offer as it would depict India’s stance in a matter of global importance that concerns democracy and sovereignty, and territorial integrity of a nation.
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