RBI Russia is being used to build up strategic reserves and India is now better off than most countries.
In his speech, Patra said that the US treasury department has informed the Indian authorities of Russian oil being processed into inputs for plastic manufacture in India and exported to the US. He narrated this incident as an example of how ‘topsy turvy’ the world has become in the wake of the Russian-Ukraine war and how the ‘war works in strange ways’.
“You know that there are sanctions against people who are buying Russian oil. It turns out that an Indian ship met a Russian tanker mid-sea, picked up oil, came to a port in Gujarat, it was processed in that port and converted into a distillate that is used in the manufacture of single-use plastic,” said Patra. The twist in the story was how the refined output ended up in the United States despite US sanctions barring import of Russian-origin energy products into the country.
“The refined output was put back on the ship, and it set sail without a destination; in the midseas, it received a destination, so it recharted its course and went to New York and handed its stuff,” said Patra. Patra said that even when it comes to food grains while many countries are facing shortages, India has buffer stock.
The deputy governor said that RBI has projected high growth for the first half.