Mendia Other Asian countries have been under strong pressure not to increase purchases from the United States as the European Union and other allies have blocked energy imports from Russia in line with sanctions against the war with Ukraine. It is becoming an increasingly important source of oil revenue for Moscow.
Such sales are boosting Russia’s export revenues as Washington and its allies seek to limit the flow of funds to support Moscow’s war effort.
A report by the Helsinki-based Energy and Clean Air Research Center in Finland announced that Russia earned € 93 billion ($ 97.4 billion) from fossil fuel exports during the first 100 days of the country’s invasion. .. Finland, despite a decline in exports in May.
“Fossil fuel export revenues are a key factor in enabling Russia’s military buildup and aggression, providing 40% of federal budget revenues,” he said.
According to commodity data company Kpler, India, a country of 1.4 billion oil-hungry people, had 12 million barrels in 2021 overall, compared to nearly 60 million barrels in Russia so far in 2022. I’m swallowing oil. Shipments to other Asian countries like China have also increased in recent months, but not so much.
In an interview with the Associate Press, the Sri Lankan Prime Minister is forced to buy more oil from Russia as he desperately seeks fuel to keep the country running in a dire economic crisis. Said it might be.
Prime Minister Ranil Wickremesinghe said on Saturday that he would first look at other sources but would accept to buy more crude oil from Moscow. In late May, Sri Lanka purchased 90,000 metric tonnes (99,000 tonnes) of Russian crude oil to reopen its only refinery.
Russia is working to diversify its exports. Russian ambassador Marat Pavlov met Ferdinand Marcos Jr. in the Philippine presidential election yesterday and provided Moscow’s assistance in providing oil and gas. He didn’t specify a term.
Marcos Jr., whose six-year term is set to begin on June 30, did not say whether he was considering an offer.
Since Russia’s invasion of Ukraine in late February, global oil prices have skyrocketed, and refiners in India and other countries have been told by refiners in Moscow, compared to Brent crude and other international oils currently traded. We are giving you an incentive to tap oil with a big discount of $ 30 to $ 35. For about $ 120 per barrel.
Their importance to Russia increased after the European Union of 27 countries, the main market for fossil fuels that supply most of Moscow’s foreign income, agreed to stop most oil purchases by the end of this year. ..
Matt Smith, Kpler’s chief analyst, who tracks the flow of oil in Russia, said: As Urals oil shipments to much of Europe are reduced, crude oil will flow to Asia instead, where India will become the top buyer, followed by China. Ship tracking reports show that Turkey is another important destination.
“People recognize that India is such a refining hub, take it at a very low price, refine it and ship it as a clean product.
In May, about 30 Russian tankers loaded with crude oil headed for the Indian coast, dropping about 430,000 barrels a day. According to the Energy and Clean Air Research Center, an average of only 60,000 barrels per day arrived from January to March.
China’s state-owned and independent refiners are also stepping up their purchases. According to the International Energy Agency, in 2021, China was the largest single purchaser of oil in Russia, consuming an average of 1.6 million barrels per day and evenly divided into pipeline routes and maritime routes.
India’s imports are still about a quarter of that, but the sharp increase since the beginning of the war is a potential source of friction between Washington and New Delhi.
The United States recognizes India’s need for affordable energy, but “expects allies and partners not to increase Russia’s energy purchases,” Secretary of State Antony Blinken said in April of the United States and India. Said after the meeting of Foreign Ministers and Defense Ministers.
Meanwhile, the United States and its European allies are engaged in “very active” discussions on adjustments, such as perhaps forming a cartel to try to cap prices on Russian oil, Janet Yellen said. The Treasury Secretary told the Senate Finance Committee last week.
She said the goal was to keep Russian oil flowing into the global market, preventing oil prices, which had already risen 60% this year, from rising further.
Europe has been able to find an alternative source to buy about 60% of Russia’s crude oil exports, but Russia also has an option.
India’s Foreign Minister S. Jaishankar emphasized his intention to act in the best interests of his country, suffering from criticism of Russia’s oil imports.
“If India’s funding of Russian oil is funding the war … tell me, isn’t buying Russian gas funding the war? Said in a recent forum in Slovakia, referring to Russia’s gas imports in Europe.
India’s crude oil imports from Russia increased from 100,000 barrels per day in February to 370,000 barrels per day in April and 870,000 barrels per day in May.
As the proportion of these shipments increases, oil is being expelled from Iraq and Saudi Arabia, most of which is sent to deer and jamnagar refineries on the west coast of India. Until April, Russian oil accounted for less than 5% of the crude oil processed at the Reliance Industries-operated Jamnagar refinery. According to the Energy and Clean Air Research Center, it accounted for more than a quarter in May.
Exports of petroleum products such as diesel in India increased from 580,000 barrels per day before the invasion of Ukraine to 685,000 barrels per day.
China’s imports have also increased this year, helping Russia’s President Vladimir Putin’s government record a $ 96 billion current account surplus in the four months to April.
It is unclear whether such exports could ultimately be subject to sanctions aimed at reducing cash inflows into Russia.
Regarding sanctions, “Are these measures effective? If not, how are oil markets avoiding them?” Myllyvirta said.
KRUTIKA PATHI & ELAINE KURTENBACH, New Delhi, MDT / AP
Germany lags behind China Top Russian energy importers
China An independent research group said yesterday that it has overtaken Germany as Russia’s largest buyer of energy exports since the start of the war in Ukraine.
According to the Energy and Clean Air Research Center, the sale of oil, natural gas and coal has earned around € 93 billion ($ 97 billion) since Russia’s invasion of Ukraine on February 24.
About 61% of fossil fuels worth about € 57 billion were exported to the European Union during the first 100 days of the conflict, according to a group based in Helsinki.
This includes € 12.1 billion worth of exports to Germany, € 7.8 billion to Italy and the Netherlands, and € 4.4 billion to Poland, the group said.