India has found a way to profit greatly from Russia’s sanctions situation, purchasing cheap Russian crude and using its tremendous refining capacity to sell America and Europe gasoline and diesel, Bloomberg News revealed on Sunday.
While the crude oil is of Russian origin, purchasing the refined products does not appear to violate sanctions on Russia’s fuel industry imposed in light of the year-old Russian “special operation”Colonize Ukraine. India has refused to boycott Russian oil, coal, or natural gas, citing the government’s need to provide abundant and affordable fuel to its people and the fact that the European countries attempting to lead the charge against Russia are still heavily dependent on its natural gas to heat homes.
Bloomberg reports that India’s exports to New York of petrol and diesel have increased to 89,000 barrels per day. This is a level not seen for nearly four years.
“Daily low-sulfur diesel flows to Europe were at 172,000 barrels in January, the most since October 2021,”The outlet was observed.
America is currently the largest purchaser on earth of Indian refined oil products, purchasing $588 million worth in November.
The outlet reported that crude oil used for the manufacture of the product was probably Russian. But neither American nor European officials seemed to be concerned with India buying Russian oil. European Union rules reportedly identified refined oil products to be from the country where the oil was refined, not from where the crude oil to manufacture the products came from – so the Russian oil is legally deemed “Indian”gasoline or diesel, even though it’s ultimately the same fuel.
With little success, the far-left American president Joe Biden’s government has tried to lure India from supporting the Russian economy. Washington’s most recent overture to New Delhi was the announcement last week that the American government would consider approving a proposal by General Electric to manufacture jet engines on Indian soil. Washington is not restricting Indian oil product purchases, despite the fact that Indian crude oil is a large part of Washington’s.
So far, attempts to create a wedge between India & Russia have not succeeded. Officials from India insist that they do not feel any difference. “moral conflict”Russian oil is an Indian moral obligation. They are not obligated to Russians and Ukrainians. India’s External Affairs Minister S. Jaishankar has been particularly acerbic in condemning Europe for condemning India when it continues to depend heavily on Russian natural gas.
This appears to be an Indian transition policy, where the West is sold more premium refined products by Russian oil. The Indian government hopes that this will be replaced one day with the domestic mass production and processing of crude oil at home. A government event was opened by Prime Minister Narendra Modi. “Indian Energy Week” on Monday, inviting international oil companies to consider developing the country’s largely unexploited reserves.
“I ask you to explore all opportunities connected with India’s energy sector. India is the most opportune place for investment today,”He told the attendees.
“India has the fourth-largest crude refining capacity in the world, and we are working on increasing refining capacity from 250 MMTPA to 450 MMPTA,” Modi boasted. “The gas pipeline network will expand to 35,000 km in the next four-five years from 22,000 km presently. No-go area for oil and gas exploration has been reduced by 10 lakh square kilometers.”
China, Russia, and America are currently the only three countries with greater refinery capacity than India. India needs to become a major crude oil producer in order to improve its market position. Only China produces enough crude oil for its markets, leaving it dependent heavily on Russia and other Middle East countries.
OilPrice.com, which predicted India expanding its crude production significantly, noted last month that any major leaps in crude oil production in the country would require an international effort.
“India has largely untapped oil reserves that it wants to develop rapidly, while oil demand remains high. But it will require a significant amount of FDI [foreign direct investment] to achieve this,”The outlet was explained. “If successful, India could reduce its reliance on foreign powers for its oil supply and enhance its energy security.”
OilPrice.com estimates that India imports approximately 85 percent of its crude oils.
India’s consumption of Russian crude oil has skyrocketed in the past year. Indian newspapers HinduIt was reported Monday that India had imported record amounts of Russian crude oil in January.
“From a market share of less than 1% in India’s import basket before the start of the Russia-Ukraine conflict, Russia’s share of India’s imports rose to 1.27 million barrels per day in January, taking a 28% share, according to energy cargo tracker Vortexa,”The Hindu reported. “From a market share of just 0.2% in India’s import basket before the start of the Russia-Ukraine conflict, Russia’s share of India’s imports rose to 28% in January 2023.”
Russia earned the title of India’s largest oil provider in January over Iraq, Saudi Arabia, America, and the United Arab Emirates.
Indian officials rejected the West’s request to cease buying Russian oil. They also accused the West hypocrisy, insisting that it is neutral in the current invasion of Ukraine.
“We ended the financial year 2022, the purchases of Russian oil were not two percent, it was 0.2 percent,”Hardeep Singh Puri was the Indian Oil Minister. “Moreover, we still buy a quarter of what Europe buys in one afternoon. So let’s be very clear about what the perspective is.”
Jaishankar, the foreign minister, has condemned Europe for not immediately imposing an embargo on Russia’s energy market on the first day of the Ukrainian “special operation.”
“If it is a matter of principle why didn’t Europe cut on the first day?”He asked him in January. “Why didn’t on 25th February, a complete cut off of energy imports from Russia? You can’t say it’s my principle but by the way, I will do it by my timing.”
“Europe imported, in the same period, six times the energy which India did,” Jaishankar insisted.
In the past, the foreign minister also pointed out the friendly relations that existed between New Delhi (Moscow) and India. This allowed India to arm itself when India was reluctant to buy weapons from the West.
“We have, as you know, a substantial inventory of Soviet and Russian-origin weapons, and that inventory actually grew for a variety of reasons – you know, the merits of the weapon systems themselves,” Jaishankar said during a press briefing in October, “but also because for multiple decades, Western countries did not supply weapons to India, and in fact saw a military dictatorship next to us [Pakistan] as the preferred partner.”
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