Russia Sanctions: India Profiting From Russian Oil Trade by Exporting Refined Petroleum

[kazaki]

Russia Sanctions: India Profiting From Russian Oil Trade by Exporting Refined Petroleum

India is defying western sanctions to buy millions of barrels of discounted Russian crude oil, hiding their origin and exporting refined pet...

www.southasiainvestor.com

India is defying western sanctions to buy millions of barrels of discounted Russian crude oil and exporting refined petroleum products with a big markup to make a huge profit. China has yet to increase its oil imports from Russia, according to news reports. Meanwhile, India's neighbors Bangladesh and Pakistan are abiding by western sanctions and paying much higher market prices to buy oil for their domestic needs, and hurting their people. Such double standards are not going unnoticed.

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India's Refined Petroleum Exports.Source: MarketWatch

India is importing large amounts of deeply discounted Russian crude, running its refiners well above capacity, and capturing the economic rent of sky-high crack spreads and exporting gasoline and diesel to Europe, according to MarketWatch. “As the EU weans from Russian refined products, we have a growing suspicion that India is becoming the de facto refining hub for Europe,” said Michael Tran, global energy strategist at RBC Capital Markets, in a Tuesday note. Here’s how the puzzle pieces fit together, according to Tran:


"India is buying record amounts of severely discounted Russian crude, running its refiners above nameplate capacity, and capturing the economic rent of sky-high crack spreads and exporting gasoline and diesel to Europe. In short, the EU policy of tightening the screws on Russia is a policy win, but the unintended consequence is that Europe is effectively importing inflation to its own citizens. This is not only an economic boon for India, but it also serves as an accelerator for India’s place in the new geopolitically rewritten oil trade map. What we mean is that the EU policy effectively makes India an increasingly vital energy source for Europe. This was historically never the case, and it is why Indian product exports have been clocking in at all-time-high levels over recent months".

Bangladesh and Pakistan are afraid to buy Russian oil for fear of western sanctions while American ally India feels free to do so. As Pakistani Finance Minister Miftah Ismail told CNN's Becky Anderson in an interview, “It is very difficult for me to imagine buying Russian oil. At this point I think that it would not be possible for Pakistani banks to open LCs or arrange to buy Russian oil". Similarly, Bangladeshi Foreign Minister AK Abdul Momen told journalists: “You are seeing that they (western nations) keep bossing us and you (journalists) also encourage them. Every day, they come up with new issues. We used to call them development partners. They do not pay for the development but keep giving advice.” “We do not want to get into any problem. We want peace in the world,” Momen added.

The West, particularly the United States, is turning a blind eye to India's actions when it comes to busting sanctions on Russia. Indian Prime Minister Narendra is openly funding the war in Ukraine by buying weapons and oil from Russia. At the same time, India's smaller neighbors feel intimidated by the threat of western sanctions if they follow Modi's example. Such double standards are not going unnoticed.

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Russia Sanctions: India Profiting From Russian Oil Trade by Exporting Refined Petroleum

India is defying western sanctions to buy millions of barrels of discounted Russian crude oil, hiding their origin and exporting refined pet...

www.southasiainvestor.com

First thing first instead of russian oil imran khan the magnificent should have purchased islamic brother Iran's cheap oil , he did not , why ?
Secondly
Is there any offer of oil sales to pakistan ? None
If it was there it will require money which pakistan has to take from west or middle east , you can not use west money to give to russia .

 

[satyamev]

Indonesia state owned energy company, Pertamina, is benefiting from Russian oil. The refinery has not yet ready to get Russian oil, not until July this year, but their oil tankers business has been used to transport Russian oil into China.

But yes, seems this Greenpeace only target Indonesian tankers while closing eyes on the fact during that time European tankers still buy Russian oil

so basically Indonesia is just a whipping boy ? anyone can come and slap you.
Which country does that remind me of ? hmm

 

[Indos]

so basically Indonesia is just a whipping boy ? anyone can come and slap you.
Which country does that remind me of ? hmm

What slap dude ???? Still upset with 4.1 % GDP growth in Q1 2022 ?? Why so salty ??

That Greenpeace with that boats cant do anything with the tanker, the tanker has send Russian oil to China without obstacle, that Greenpeace just want to have media attention and target Indonesian company as the company benefiting from Russian oil, nothing that they can do beside raising media attention.....and they know it is their target.

 

[RiazHaq]

China and India buy more Russian oil, blunting Western sanctions
Both countries take advantage of discounts as buyers disappear

China and India buy more Russian oil, blunting Western sanctions

Both countries take advantage of discounts as buyers disappear

asia.nikkei.com

TOKYO -- China and India have increased Russian oil purchases as prices decline due to Western import bans, the latest data shows, creating a loophole that allows Moscow to secure export revenue.

China imported 800,000 barrels of Russian petroleum daily by sea last month, according to data from Refinitiv, a figure that does not include oil delivered via pipelines. The volume has soared by more than 40% from January.

The number indicates that China is deliberately going after cheap Russian crude. India's marine imports of Russia's oil also spiked from zero in January to nearly 700,000 barrels a day in May.

China and India have expanded imports because "Western sanctions have reduced the number of buyers, meaning Russian crude oil can be purchased cheaply," said Takayuki Nogami, chief economist at Japan Oil, Gas and Metals National Corp., the state-backed energy explorer known as JOGMEC.

Following similar action by the U.S., the European Union agreed to ban imports of Russian oil last week, immediately halting imports on two-thirds of the petroleum. The bloc plans to end roughly 90% of purchases by year's end. More companies in Western economies are shying away from procuring Russian oil as well.

As a result, Russia's Urals crude, mostly bound for the European market, currently trades around $90 a barrel. In contrast, the Brent crude international benchmark sells about $35 higher.

Russia's ESPO crude -- mostly exported to Asia -- costs around $94 per barrel, roughly $20 below Dubai crude, which serves as Asia's benchmark. The prices differed by just a few dollars at the start of the year.

But the price of Urals crude has gained roughly 30% since a year earlier. The rise in international oil prices is one factor, and the growing imports by China and India buttress Russian oil prices amid the sanctions.

Russia's revenue from oil exports between January and April has climbed 50% on the year, the International Energy Agency said.

Russian coal benefits from a similar dynamic. Despite Western import bans, the price hovered around $148 a ton in late May, according to data from Argus Media, based on assessments at Baltic ports.

Though the value is well below the roughly $330 a ton for ICE Rotterdam coal futures in that period, Russian coal is still double the price from a year earlier. India, China and a few other importers have helped propped up the product.

For liquefied natural gas, Asian prices are in the mid-$20 range per 1 million British thermal units, but China-bound Russian LNG is "being traded at a significant discount," said Toshiyuki Makabe, managing director of commodities sales at Goldman Sachs.

Beijing's purchases of Russian LNG during May were in line with year-earlier volume, due largely to China's COVID lockdowns, but imports could rise again this summer on air conditioning demand. There are reports of Indian buyers purchasing Russian LNG on the spot market.

Meanwhile, pipeline deliveries of Russian gas to Europe have diminished only by a limited extent apart from halted supplies to Poland. These LNG sales do not appear subject to the types of discounts seen in Asia.

The U.S. and Europe are urging China and India to refrain from buying Russian oil and coal. But cheap Russian supplies present an enormous economic advantage given the soaring global energy prices.

India's Ministry of Petroleum and Natural Gas said last month that "energy purchases from Russia remain miniscule in comparison to India's total consumption." Pulling back from Russian imports "will lead to further volatility and instability, jacking up international prices," the ministry warned.

 

[Apollon]

The article is propaganda, to be written like India is taking advantage of Russia's oil price.

Like India is the bad guy.

But the truth, India is just doing business as usual.

Besides India is a friend of Russia, the relationship between India and Russia is close.

I don't think this article is matter.

By not buying Russia's oil, India actually is a victim, for being an idiot and suicidal.

Nations have no friends, just interests.


The amount india buys is too small to bother anyone.