Russia earns $24 billion after exporting oil “China-India” only 3 months amid sanctions

Bloomberg News reported on July 6, 2022 that Russia received $24 billion in energy sales to China and India just three months after the invasion of Ukraine. It shows that higher global prices are limiting US efforts. and Europe to boycott President Vladimir Putin.

China spent $18.9 billion on Russian oil, gas and coal in the three months to the end of May. almost doubled from the previous year According to the latest information of the Customs Department Meanwhile, India spent $5.1 billion in the same period. That’s five times the value of last year. That’s $13 billion in extra revenue from both countries compared to the same month in 2021.

Higher spending offset lower purchases from the US and other countries. that halts or delays purchases to punish Russia for war The embargo on soaring alternative prices has fueled crippling inflation that threatens to plunge the key economy into recession.

“China is buying everything Russia can export through its Pacific pipelines and ports. …India is a major buyer of the Atlantic Ocean that Europe no longer needs,” said Lori Millievirta, chief analyst at the Center for Clean Air and Energy Research. which has been following Russia’s energy flow since the war erupted, said

The fun isn’t going to end anytime soon, with energy prices significantly higher than they were at this time last year. Even the steep discount on the global benchmarks that Russia offers attracts buyers. considering the quantity China’s imports continue to increase slowly. in june While India may have incentives to drive even greater purchases in the coming months. This is because the ban on Russian oil in the EU will come into effect.

China and India continue to follow Europe as a group in terms of overall sales this year. According to Myllyvirta research, European purchases will continue to shrink. as the ban on coal and oil imports has come into force And while Russia cuts gas supply to some European buyers

Russia has long-standing commercial and strategic ties with China and India. The steep discount offers also accept payments in local currency to help trade flows to different countries. strong this year

China is the world’s largest energy importer and has a dedicated Siberian oil and gas pipeline. Although energy use will be limited in the first half of 2022, partly due to the COVID-19 lockdown. But it uses a lot more Russian energy. due to the higher price and the small quantity increase.

India’s post-war increase in spending is much more intense. Because India has no borders with Russia. And usually Indian ports are too far away for cost-effective transportation. In addition to the soaring oil and coal India has also imported three Russian liquefied natural gas cargoes since the war began. Compared to the same period last year According to Bloomberg’s ship tracking data.

“In the past, India used little Russian oil. But the war in Ukraine and the ban on Russian oil exports by the European Union. Leading to the rebalancing of oil trade flows,” said Wei Cheong Ho, analyst at Rystad Energy, in a research note. Note last month

Reference : https://www.bloomberg.com/news/articles/2022-07-06/china-and-india-funnel-24-billion-to-putin-with-energy-spree?srnd=markets-vp

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