India fills West's oil gap by delivering refined Russian crude?
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New Delhi: While the West impose sanctions over sanctions on Russia to force it to reach terms on the Ukraine issue, India buys Russian oil, refines and supplies the petroleum products to the same West, Bloomberg reports.
The West, comprising Europe and the US, has imposed stringent sanctions on Russian oil, crimping its energy revenue. There, India plays a part in keeping the oil shortfalls for the West by supplying the same there after buying Russian crude for lesser rates.
Bloomberg reports that as Europe increase its sanctions on Russian oil, India becomes more central to "a global oil map", a product of Vladimir Putin's year-long invasion of Ukraine.
According to a US-based expert, the US treasury has the prominent goal of keeping the oil market well supplied, along with putting heavy pressure on Russia, depriving it of its oil revenue. Though the US is aware that Indian and Chinese refineries will be able to earn enormous profits by buying Russian crude at discounted prices, they are okay with it, the expert added.
In January, India exported around 89,000 barrels a day of gasoline and diesel to New York, which was the highest in around four months, data intelligence firm Kpler suggested. Daily low-sulfur diesel shipped was 1,72,000 barrels.
Further, India's importance will increase now as the West is planning to impose more sanctions. However, in India, which relies on imported crude for nearly 85 per cent of its need, the refiners, including the state-run ones, increased exports since last year to profit from high international prices.
India is not breaching the European Union's guidelines. When Russian crude is processed in a country outside the EU, the products do not originate from Russia and could be delivered to EU countries.
Though the EU is keen to cut Moscow's revenue, it does not wish to block the oil supply since Russia is a major crude supplier. The plan is spearheaded by the US too.