Russia is taking drastic measures to ensure its cheap oil exports continue flowing into India, despite US-led sanctions aimed at crippling the country's energy sector. The sanctions, imposed in November, have had an initial impact, with Indian imports of Russian oil dropping by around a third. However, industry experts warn that this may be only a temporary setback for Moscow.
The latest development is that Russia has begun reorganising its supply chain to allow countries like India to circumvent the US sanctions. This involves new shadow middlemen emerging between Russian oil giants and refineries in countries such as India. These companies are already dominating exports, and it's likely just a matter of months before the full supply chain gets reorganised.
India's largest private oil company, Reliance, has taken a different approach by publicly declaring it would no longer import Russian crude into its Jamnagar refinery. This decision was made in response to both US sanctions and EU regulations preventing Russian-origin oil processed in a third country from entering the bloc.
However, analysts believe that this may be a strategic move to gain authorisation to resume purchases of Venezuelan oil from the US. With Russia exploring new avenues to bypass sanctions, it's clear that the global energy landscape is becoming increasingly complex.
As prices for Russian oil have dropped even further, making them $9 or $10 per barrel cheaper than oil from countries such as Saudi Arabia or Iraq, the allure of cheap energy for India's refineries remains strong. Industry experts expect imports to soon return to pre-sanction levels, with analysts predicting that companies like Reliance will continue to find ways to comply with sanctions while accessing affordable Russian crude.
The ongoing dynamics between Russia and the US have significant implications for global energy markets and geopolitics. As the situation continues to unfold, one thing is clear: India's dependence on cheap Russian oil shows no signs of waning anytime soon.
The latest development is that Russia has begun reorganising its supply chain to allow countries like India to circumvent the US sanctions. This involves new shadow middlemen emerging between Russian oil giants and refineries in countries such as India. These companies are already dominating exports, and it's likely just a matter of months before the full supply chain gets reorganised.
India's largest private oil company, Reliance, has taken a different approach by publicly declaring it would no longer import Russian crude into its Jamnagar refinery. This decision was made in response to both US sanctions and EU regulations preventing Russian-origin oil processed in a third country from entering the bloc.
However, analysts believe that this may be a strategic move to gain authorisation to resume purchases of Venezuelan oil from the US. With Russia exploring new avenues to bypass sanctions, it's clear that the global energy landscape is becoming increasingly complex.
As prices for Russian oil have dropped even further, making them $9 or $10 per barrel cheaper than oil from countries such as Saudi Arabia or Iraq, the allure of cheap energy for India's refineries remains strong. Industry experts expect imports to soon return to pre-sanction levels, with analysts predicting that companies like Reliance will continue to find ways to comply with sanctions while accessing affordable Russian crude.
The ongoing dynamics between Russia and the US have significant implications for global energy markets and geopolitics. As the situation continues to unfold, one thing is clear: India's dependence on cheap Russian oil shows no signs of waning anytime soon.
just thinking about this... india's reliance on russian oil is a double-edged sword, you know? on one hand, it saves them a ton of cash and makes their refineries super happy 
but on the other hand, it's like playing with fire - they're stuck in this precarious position where if russia gets its act together, they'll be back to importing that oil in no time 
and then what? 
Those shadow companies are like, super secretive and that's not a good vibe for me. What if they're just using India as a way to get around sanctions and make bank? 
. I mean, I knew this would happen, but it's crazy how adaptable Russia is. They're like the ultimate negotiators, always looking for loopholes and finding new partners 
. The US is trying to strong-arm Russia into submission, but it just seems like they're fueling their determination 
. And India's right in the middle of it all - they're playing both sides, which is smart business 
️. We should be focusing on developing our own renewable resources instead of relying on foreign oil 
. Still, I guess that's a conversation for another day...
.
!
. But on the other hand, India's Reliance is being super cautious, and I kinda respect that move. They're playing it safe, you know? It's all about navigating these complex global energy politics and finding ways to comply without getting caught in the crossfire 
.
...can't wait to see how this whole thing plays out in the next few months 
...India's Reliance is making some bold moves, I'll give 'em that 
And honestly, it sounds like they're just trying to get back in the game with some cheap Venezuelan oil instead.
. And it makes sense that Indian companies like Reliance are looking for ways to stick it out with cheap Russian oil - I mean, who wouldn't want to save a buck 
. Reliance might be trying to play it safe by saying no more Russian imports, but I think that's just a PR move 
. They'll find a way to get their hands on that oil eventually 
.
. Anyway, back to Russia and oil exports... yeah, it's wild how they're finding ways to work around sanctions 
I'm not convinced that these shadow middlemen are just going to pop up out of thin air 
. What's the real motive behind India's decision to stop importing Russian crude from Reliance? Is it just a PR stunt or is there more to it 
. It's gonna be interesting to see how the EU and US handle this - will they find ways to contain Russia without choking off our energy supply? Only time (and some clever economics) will tell