India is facing a challenge in the form of delays in payment for Russian oil priced above $60 per barrel. This is according to Pankaj Jain, India’s Oil Secretary who spoke on Monday. The cap has been imposed by Western nations and Indian companies are struggling to comply with it due to their limited resources.
The delay occurs when the price exceeds $60/bbl as Indian companies have difficulty paying such high prices at once and require time to arrange funds from other sources or partners. This makes it difficult for them to make timely payments, which results in delays that can last up to several months depending on the situation.
To tackle this issue, India has requested Russia not only provide better terms of payment but also allow deferred payments so that they can manage their finances more easily without having any negative impacts on either side’s interests or relations between both countries. It remains unclear whether Russia will agree to these requests but if implemented successfully, this could help reduce delays and improve trade relations between both countries significantly going forward.
Read more at Reuters
