Russia seeks to circumvent sanctions to maintain oil supplies to India
Russia is already working to circumvent new US sanctions to ensure uninterrupted oil supplies to India. Industry analysts say that Moscow is rebuilding its export logistics and creating new formal suppliers instead of sanctioned companies. This is reported by The Public with reference to The Guardian.
After the start of a full-scale war against Ukraine, India became the world's second largest buyer of Russian oil. Raw materials from the Russian Federation are sold at significant discounts due to Western sanctions and are currently about $9-10 per barrel cheaper than oil from the Middle East. For India, which imports about 90% of its oil consumption, this difference is crucial.
In late November, the US imposed restrictions on companies and refineries that buy oil from Russia's two largest exporters, Rosneft and Lukoil. According to official data, in December, this led to a drop in Russian oil imports to India from 1.7 million barrels per day to about 1.2 million barrels, or almost a third.
At the same time, experts doubt that this decline will be long-term. Four of India's seven largest refineries continue to run largely on Russian oil. Export data show that new Russian suppliers emerged in December, likely acting as intermediaries between major oil companies and buyers in India. Analysts estimate that a complete restructuring of the supply chain could take two or three months.
Experts estimate that even with increased risks, purchasing Russian oil allows Indian companies to save up to $4 billion a year. That is why it is expected that India's state-owned refineries will gradually return to previous import volumes.
The country's largest private company, Reliance, remains an exception. Since November, it has officially stopped purchasing Russian oil for its Jamnagar refinery, due to both US and EU sanctions on Russian refined products. At the same time, Reliance is already in talks about a possible resumption of purchases of Venezuelan oil in consultation with Washington.
Source and photo The Guardian.
Putin, Moscow, Russia, India,
