Russia has reportedly offered India to lease and build very large crude carriers (VLCC) as insurance on Russia’s oil.
Traditionally, India could not secure significant amounts of Russian crude as there were no VLCCs. However, with Indian imports from Russia touching almost 30% of the total requirement, VLCC is now the need of the hour.
This can also help eliminate insurance liability on India as after placing a price cap, most insurers have reportedly backed out from insuring Russia’s crude, mentioned sources. The offer was extended when Russia’s Russian Deputy PM, Alexander Novak, met the Indian Ambassador to Russia, Pavan Kapoor, on 9 December.
In 2021, bilateral trade between Russia and India went up by 46.5%, exceeding $13.5 billion. Until September 2022 (from January), trade touched $20.4 billion.
Reference: newindianexpress, timesnownews, moneycontrol