India supports Russia over the uncalled-for comments of Joe Biden, going for energy security and avoiding the fallout from his glib tongue. Efforts to pull in New Delhi to support sanctions fell so flat, and the humiliation poured in.
Washington drives more nations to pay for Russian natural gas and oil that don't agree with the current US administration, cited Al Jazeera.
India Chooses Energy Security Over Sanctions
From the onset of the Ukraine incursion to assist the Donetsk People's Republic and Luhansk People's Republic from assaulting Ukrainians has earned Russia sanctions directed at its economy, reported the Express UK.
But Russian President Vladimir Putin's backup is to get the support of China and India in the east to circumvent the western sanctions by using energy reserves as its exchange.
Sources say that India will purchase about 15 million barrels of oil till the year's end, remark experts. Gazprom, Russia's state-run energy producer, requested GAIL, India's biggest energy distribution firm, to pay in Euros, not dollars.
The Kremlin is trying to end the worth of the petrodollar. Western nations have gone all out to cancel the Russian economy for its efforts to free pro-Russian Ukraine provinces. Paying US currency for energy imports from Gazprom Marketing & Trading Singapore, these two energy firms have long-term deals to acquire 2.5 million tons of liquefied natural gas annually.
India To Purchase, Pay Russian Oil in Euros, Not Dollars
GAIL of India does all the importation and distribution of gas as it handles the largest gas pipeline network operation. Russian gas firm a week ago told GAIL that paying for gas payments will be in Euros, not the US dollar. India's support for Russia is not surprising as energy security is important, and Delhi has no confidence in Joe Biden.
Sources are saying that it will be under discussion by the Indian gas firm, looking over the change of currency for payment.
Reuters states that GAIL accepts the proposal, and there is no issue with shifting to Euros as the mode of payment. This LNG deal entered between Moscow and New Delhi will not be affected by sanctions imposed by the US and EU.
Since trading is via the Singapore arm of the Russian corporation, it would see some blowback if Joe Biden pursues it. It is a big move that Putin has embarked on to weaken the dollar, which is important in energy transactions. Others say the west is shooting itself in the foot to stop Russia, especially the USA.
Buying the dollar empowers the US dollar, which stands to be weakened and upset if the status quo in payment is changed, stated the Diverse Bulletin.
The dollar exchange in this mega transaction only boosts the dollar and US assets; the money is used for investment in US companies.
India is not inclined to lessen the support of Russia with better ties in energy security; oil sold by Russia is far cheaper than other sources. New Delhi has more confidence in the Kremlin than Biden, who called for regime change and once called Putin a 'butcher'. The POTUS has low poll numbers in the US and is seen as a gaffe machine.
Prices of Urals crude are priced at $20-$25 a barrel or £17, which was not known immediately. The current world price is $120.60 (£92) per barrel. Another slap to the US is how a Rupee-Ruble deal is in work to nullify all sanctions. India supports Russia and wants energy security that leaves out the prodding by Washington or Europe.
