India buys Russian oil at a discount and refines it for Europe and the US - Bloomberg
Experts believe that this was the plan
India is refining cheap Russian oil and selling petroleum products to the United States and Europe, increasing its role in the global oil market.
Source. Bloomberg
Details. As the West tightens sanctions, India is taking an increasingly important place in the global oil market. New Delhi buys oil from Moscow at a discount, and Indian refineries process it for the United States and Europe. This is in line with the West's main goals: to reduce the Kremlin's energy revenues and avoid a supply crisis.
In January, India shipped about 89,000 barrels of gasoline and diesel to the United States per day, the highest in almost 4 years, according to Kpler analysts. The supply of low-sulfur diesel fuel to Europe in January amounted to 172,000 bpd. This is the highest level since October 2021.
On February 5, new sanctions came into effect – an embargo and a price ceiling on Russian oil products. To fill the supply gap, the West, especially Europe, will rely on Asia, experts say. This will make cheap Russian oil even more attractive to India, which imports about 85% of its oil needs.
India's actions do not appear to contradict EU rules, Bloomberg notes. Oil from Russia is refined in a country outside the bloc, and the refined product can then be shipped to the EU, which will no longer consider it "of Russian origin."
India's willingness to buy more Russian oil at discounts is one element (and not a mistake) of the Western countries' plan to create economic difficulties for Putin without harming their own economies, experts say.
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