5.02.2023
India has sharply increased purchases of Russian oil. It is processed at local refineries, after which the resulting oil products are sent to the United States and European countries. And this situation generally suits the West.
Thus, India is playing an increasingly important role in global oil markets, writes Bloomberg . “New Delhi has not faced public backlash because it is helping to achieve the twin goals of the West: to cut the Kremlin’s energy revenues and prevent an oil supply shock,” the agency said.
The fact is that Russia has to sell oil to India at a large discount. This, combined with the price ceiling of the West, prevents the Russian Federation from earning as much from energy resources as before.
“Indian and Chinese refiners can make big profits by buying Russian oil at a discount and exporting products at market prices. This suits US Treasury officials,” said Ben Cahill, senior fellow at the Center for Strategic and International Studies (Washington).
Analysts believe that the more Europe tightens energy sanctions against the Russian Federation, the more important place India will occupy in the market. The supply of petroleum products to the US and the EU has already increased markedly:
- India shipped about 89,000 barrels of gasoline and diesel a day to New York in January, according to Kpler, the highest in nearly four years;
- daily deliveries of diesel fuel to Europe in January amounted to 172 thousand barrels, the maximum since October 2021.
Experts note that according to EU directives, India operates within the rules. When Russian oil is processed into fuel in a country outside the bloc, such as India, the refined products can be delivered to the EU, as they are no longer considered Russian.
As OBOZREVATEL reported, on February 5, an embargo on the purchase of Russian oil products came into force in the European Union . In addition, the marginal price for diesel fuel and other petroleum products has earned. Among other things, these decisions will have a significant impact on prices at Ukrainian filling stations, but not before April.
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Another article tells how China is circumventing sanctions to help mafia land with military aid. It doesn’t surprise me a bit, seeing that the West doesn’t honor its own sanctions by welcoming mafia fossil fuel products from a roundabout way. Don’t ask me how I feel about all of this, I think you already know.
“West doesn’t honor its own sanctions”
The article states that “India operates within the rules.”
In order to avoid market disruption and price spikes, rather than ban all fuel exports from Russia the West put in place a price cap, limiting how much Russia can be paid. India is importing crude oil at a price below the price cap, refining it, and exporting the result. India pockets the profit rather than Russia. So, the sanctions aren’t being ignored.
You may feel that the West should cut off Russian exports completely, but that’s a different topic. (One point to consider there is that soaring petrol and diesel prices might affect public support for Ukraine.)
No, what India is doing is no violation because they never agreed to sanction mafia land. But, your statement is still ridiculous, Larry. The West has admonished India for buying russian oil since at least last March. India still buys it, then refines it, and then sells the shit to the West. And you’re trying to tell me this isn’t violating their own sanctions!? That’s pure bullshit. It might be in a roundabout way, but in the end they are still buying sanctioned russian fuel.
I think we’re both right, OFP. Russia said they would stop selling crude to any buyer that includes a price cap clause in the contract. India didn’t agree to the price cap. However, despite their not agreeing to it, India and China are getting crude at bargain-basement prices. The prices they’re paying don’t violate the EU price cap.
Here’s an article stating that Russian crude oil is been shipped on western-insured tankers, and at least one said that it “complies with the price cap regulations.”
https://www.ft.com/content/41237fe7-210d-406c-a22a-2e17a79f7381
It also says that Putler “acknowledged that most Russian oil was already trading at or below $60 a barrel”.