Several Indian banks are evaluating new financing mechanisms that would enable local traders to purchase Russian oil not subject to international sanctions. The move comes as India continues to diversify its energy imports while navigating geopolitical constraints.
Banking executives say discussions are centered on ensuring compliance with global banking rules while retaining access to discounted Russian crude. Proposed frameworks include invoicing in local currencies and alternative settlement routes.
Analysts note that India’s appetite for Russian oil has grown significantly in recent years, driven by price advantages and flexible delivery terms. However, financial institutions remain cautious about regulatory exposure.
Government officials maintain that India will continue to prioritize affordable energy supplies while respecting diplomatic obligations.
A final decision from the involved banks is expected later this year as risk assessments and due-diligence reviews continue.