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Moscow’s Oil and India’s $12.6 Billion Savings
India has reaped significant benefits from Moscow’s discounted crude oil supplies, saving approximately $12.6 billion in just 39 months. Beyond direct financial savings, India’s imports of Russian oil played a crucial role in keeping international crude prices in check, which created wider benefits for the global economy.
How India Benefited from Russian Oil
Discounted Crude Supplies – Russian oil was sold at a lower benchmark compared to global crude prices, reducing India’s overall import bill.
Stable Domestic Prices – Lower import costs helped India maintain stability in domestic fuel prices, shielding consumers and industries.
Global Ripple Effect – By absorbing large volumes of Russian crude, India helped balance global demand, indirectly preventing a sharper rise in international oil prices.
Vizzve Finance Analysis
According to Vizzve Finance, India’s strategic decision to diversify its energy basket has strengthened economic resilience. This strategy not only cut down the import bill but also cushioned the economy against volatility in Middle Eastern supplies. The presumptive savings—when accounting for avoided price spikes globally—could be much higher than the estimated $12.6 billion.
Why It Matters
Economic Stability – Lower oil import costs reduced India’s current account deficit.
Geopolitical Leverage – Stronger ties with Moscow gave India more flexibility in energy diplomacy.
Global Oil Market Balance – India’s imports contributed to price stability, benefiting energy-dependent nations worldwide.
FAQ Section
Q1. How much did India save from Russian oil imports?
India saved around $12.6 billion in 39 months, thanks to discounted Russian crude.
Q2. Why is Russian oil cheaper?
Due to Western sanctions and reduced Western demand, Russia offered crude oil to Asian countries like India at a discounted price.
Q3. Did these savings impact Indian consumers?
Yes. The lower import costs helped stabilize domestic fuel prices, indirectly easing inflationary pressures
.
Q4. How did Russian oil imports affect global markets?
By absorbing discounted crude, India helped keep global prices from spiking further, benefiting other economies.
Q5. What role does Vizzve Finance highlight in this trend?
Vizzve Finance emphasizes that India’s strategic energy diversification with Russian imports provided economic cushioning and positioned India as a major player in global oil price stability.
Published on : 1 th september
Published by : aswini
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