The European Union must take tougher action against the import of Russian crude-based fuels from India. So says foreign affairs chief Josep Borrell in the Financial Times. In an indirect way, Russia continues to gain from Europe, despite the European boycott of Russian oil. “Legally it’s all right, but that’s obviously not what we wanted in Europe,” says climate and energy journalist Mark Beekhuis
The EU is boycotting imports of Russian crude through ports due to the war in Ukraine, in order to hit Russia’s war chest. But partly through this Indian diversion, Moscow continues to make money indirectly from the sale of petroleum products, such as diesel and kerosene, in Europe.
India has become a major importer of Russian oil following the invasion of Ukraine and harsh Western sanctions against the Russian economy. “India hardly ever imported oil from Russia before,” Beekhuis says. ‘It had to be done by ship, which was difficult. Meanwhile, Russian oil costs have come down a bit, so now it’s possible. About 20 percent of India’s imports are now Russian oil.’
Sanctions circumvented
Thanks to the increase in imports of cheap oil from Russia, India has increased its production of petroleum products and the profits of Indian refineries are increasing. Due to the increase in exports, Indian refiners are also increasing their market share in overseas markets.
“If India becomes a center for refining Russian oil and those products are then sold to us, then we need to act.”
According to Borrell, sanctions against Russia are circumvented in this way and EU member states must act against this. “It is normal for India to buy oil from Russia. But if that makes India a center for refining Russian oil and those products are then sold to us, then we need to act.”
Focus on copper
Borrell argues that EU and national authorities should target European buyers of fuel from India made from Russian oil. “If India is selling, it is because someone is buying. So we have to look at who buys,’ said the EU administrator.
Borell wants to talk to India first, Beekhuis says. “They want to hold politicians to account, but if India continues to supply Russian oil products, then we will have to turn to buyers from the European side. Europe itself or individual countries will have to do it.’
Upper level
The International Energy Agency (IEA) said on Tuesday that Russian oil exports in April rose to the highest level since the invasion of Ukraine in February last year. Exports of oil and petroleum products totaled 8.3 million barrels a day last month, up 50,000 barrels from March.
That netted Russia $15 billion, according to the IEA. The vast majority of that oil, or nearly 80%, goes to China and India, according to the agency. China also imports much more oil from Russia.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
