Taking advantage of the changes in trade flows caused by Moscow’s invasion of Ukraine, India has pushed into a niche of the Russian oil market once dominated by China.
What Percentage of Russian Energy Exports Happens?
According to their analysis, the first 100 days of the war saw oil and oil products account for 63% of Russia’s export earnings, followed by gas at 32% and coal at 5%. According to projections by the International Energy Agency, the federal budget of Russia was funded by roughly half of oil and gas earnings in 2021.
Highest Oil Importing Countries
China and India’s total oil imports from Russia in March this year exceeded those from the 27 EU members in terms of volume. Early this year, India’s purchases of Russian Urals oil, a crude blend generally supplied to Europe, climbed significantly.
According to shipping data, India’s imports of the East Siberia Pacific Ocean (ESPO) crude mix from Russia have also increased. Since March, China has increased its purchases of Urals and ESPO. It was claimed to have made record purchases for the second consecutive month at the beginning of July.
Three shipments of Russian oil have been sent to Sri Lanka, taking advantage of these reductions as it struggles with a severe economic crisis.
The military government in Myanmar recently announced that they would begin importing goods from Russia.
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Latest News on the Russian oil Market
According to dealers and shipbrokers, the South Asian country was receiving six ships carrying Russian crude known as ESPO in August.
India, a country that for years didn’t care much for the type, is receiving ESPO crude regularly, according to Emma Li, an analyst at Vortexa Ltd. “The voyage to India will take longer, but shipments may still happen as long as the price is still enticing and there aren’t any real trade restrictions in place,” the author writes.
What are other Oil Markets there for India and China?
At the end of 2021 and the beginning of this year, India’s imports of US crude oil increased significantly. However, after that, they decreased before gradually increasing again.
India continues to acquire more goods from Russia, but it also makes significant oil purchases from nations in the Middle East, particularly Saudi Arabia and Iraq.
As energy costs continue to rise globally and Western countries attempt to reduce their dependency on Russian energy, countries in Asia are turning to Russia for the discounted oil market. The newest shipping data indicates that China has also been buying more Russian crude, which India has been purchasing more lately.