Russia's rising oil sales cost India $15 billion in rupee payments over 3 months

As Russian oil purchases soared, India paid $15 billion of imports in rupees over three months. (See the linked source for details.)

Source

Indian Express — Explained →

Quick Revision

Prelims-testable facts

01India paid $15 billion of its oil imports from Russia in rupees over three months.
02The share of Russian oil in India's total imports rose to 38% in April 2022.
03India paid a premium of up to 425% on Russian oil due to rising prices.
04Russian oil was sold at an average discount of $15 per barrel in early 2023.
05India purchased $132 billion worth of crude oil from Russia over three years, averaging $44 billion annually.
06India's exports of refined petroleum products to the EU reached $19.2 billion in 2023-24.

Trap alerts

Most people think India paid for Russian oil imports in dollars, but actually it was paid in rupees over three months.
Most people think Russia sold oil at a discount of $15 per barrel due to sanctions, but actually the deep discounts were offered by Russia before the current market prices.

Prelims Practice MCQs

Single facteasy

Under the Rupee-Rouble payment mechanism, how much did India pay for its oil imports in rupees over three months?

A.$10 billion
B.$15 billion
C.$20 billion
D.$25 billion

India paid $15 billion of its oil imports in rupees over three months, as part of a larger trend of increased purchases from Russia.

Multiple statementsmedium

Consider the following statements regarding Rupee-Rouble payment mechanism: 1. The Reserve Bank of India (RBI) has allowed Indian companies to pay for their imports in rupees. 2. This mechanism is used exclusively by the Indian government. 3. India paid $15 billion of its oil imports using this mechanism. How many of the above statements are correct?

A.Only one
B.Only two
C.All three
D.None

The RBI's decision to allow Indian companies to pay for their imports in rupees under the Rupee-Rouble payment mechanism is supported by fact 3. However, statement 2 claims that this mechanism is used exclusively by the government, which contradicts the context of the fact list as it mentions 'Indian companies'. Statement 3 is true as per fact 1.

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