According to Bloomberg analysis, Russia supplies half of the offshore oil to Asia, mainly to China and India, and in May it even overtook Saudi Arabia and became the second largest supplier of oil to India, writes Business Insider.
Half of the Russian oil transported by sea is now sent to Asia — mainly to China and India.
Russia shipped 3.55 million barrels of oil per day for the week ending June 10. About 50% of supplies, or 1.878 million barrels of oil, were sent to Asia, which is 10% more than the volume of exports a week before the start of the special operation on February 24.
And if China’s imports of Russian oil remained at the same level, then India’s purchases increased significantly: in the first 100 days, deliveries of Russian oil to India increased from 1% to 18% of exports in value terms.
Russia managed to come in second place after Iraq in terms of oil supplies to India, surpassing Saudi Arabia. In May, Indian refineries imported about 819,000 barrels of Russian oil daily in May, which is a record volume, about 3 times higher than April’s 227,000 barrels per day.
Russian crude oil is now being sold at a record discount compared to other grades on the spot market due to sanctions and embargoes, but energy prices have increased this year, which supported the sale of oil. Russian oil and gas sales are expected to grow to $285 billion in 2022, which is 20% higher than oil and gas revenue of $235.6 billion in 2021.
The United States banned the import of Russian energy carriers in March, and the European Union decided to reduce 90% of Russian oil imports by the end of this year.
The US also called on India to refrain from buying too much Russian oil. At the same time, neither India nor China condemned Russia for the special operation in Ukraine. Beijing criticized the sanctions against Russia. And the Ministry of Oil and Natural Gas of India said that Russian energy sources account for a “meager” share of the country’s consumption, and that the sudden cessation of crude oil supplies will lead to an increase in world oil prices and harm consumers.
For many years, the New Delhi government tried to maintain relations with both Moscow and Washington — it was not easy. However, times are changing. What has changed? China has views on the continent, Russia is striving for a multipolar world order, America wants to maintain hegemony, and the events in Ukraine are forcing everyone to take one side or the other.
In this difficult situation, India is trying to stay away from the confrontation. At the same time, she has to maneuver between her two partners.
On one side, Russia is an indispensable source of military equipment and technology, on the other side, America is an important ally in containing China’s power.
However, while India’s partners are fighting for influence and power, the country is facing a test. Is India capable of providing ballast between Russia and America? And if not, which way to lean? All politics are conducted at the local level, even international. The border is just a line that divides the community. India has long strategic ties with Russia. At the center of which are relations formed by a miscalculation of strategic needs, both at the global and regional levels.
Today, India perceives Russia as a source of unlimited resources that cannot be given to China, because this will lead to a significant strengthening of the rival. After all, there are quite tense relations between India and China, and the Indians are not interested in contributing to the energy strengthening of China.
India itself is not rich in resources in the form of gas, oil and coal. Therefore, her desire to make a good deal with Russia is quite understandable. In particular, the Indian authorities have expressed a desire to double the supply of Russian coal. In October last year, India signed an agreement with Russia on the supply of 40 million tons of coal and several more major deals will be concluded in the near future. Over the past year alone, the price of coal has tripled and now stands at $320 per ton.
It is worth noting that the reserves of Indonesia, which was one of the largest suppliers, are rapidly declining. Russia ranks second in the number of coal reserves, according to experts, this should be enough for about 800 years. Having signed major contracts with India and China, Russian manufacturers get a good opportunity to earn on a resource that may not be in demand in the long term