Russian oil imports to India and China are growing! Sri Lanka struggles with severe economic crisis – Topky.sk

Sales in Asia are increasing Russian export revenues as the United States, the European Union (EU) and its allies seek to curb financial flows in support of Moscow’s war effort. The West has imposed unprecedented sanctions on Moscow for the war in Ukraine. According to Kpler, India has bought almost 60 million barrels (1 barrel = 159 liters) of Russian oil in 2022, compared to 12 million barrels in 2021. Photo gallery (2) Source: Getty Images Sri Lanka is struggling with a severe economic crisis Deliveries to other Asian countries, such as China, have also increased in recent months, but to a lesser extent. Sri Lanka, which is struggling with a severe economic crisis, has said it may be forced to buy more oil from Russia because it is desperately trying to keep the economy going. Since the Russian invasion of Ukraine in late February, global oil prices have risen sharply. This is an additional incentive for refineries in India and other poorer countries to buy oil, which Moscow offers them at significant discounts. The importance of these markets for Russia has grown after the 27-member EU, its main market for fossil fuels, which provide most of Moscow’s foreign income, has approved a halt to most Russian oil purchases by the end of this year. Ural oil thus changes direction and flows to Asia instead of Europe, with India becoming its largest buyer, followed by China. Ship tracking reports show that Turkey is another key destination. India buys cheap oil India buys cheap oil, processes it and exports finished “non-Russian” products, while it can earn large margins. In May, about 30 Russian tankers arrived on the Indian shores and unloaded about 430,000 barrels of oil a day. According to the independent Energy and Clean Air Research Center (CREA), based in Helsinki, Finland, India imported an average of only 60,000 barrels of oil per day from January to March. China is the largest independent buyer of Russian oil. Chinese state and independent refineries have also intensified purchases. According to the International Energy Agency (IEA), China was the largest independent buyer of Russian oil in 2021, taking an average of 1.6 million barrels per day, evenly distributed between pipelines and shipping lanes. And although Indian imports are still only about a quarter of Chinese imports, the sharp rise since the start of the war is a potential source of tension between Washington and New Delhi. The United States recognizes that India needs affordable energy, but warns that Russian oil revenues feed Moscow’s military machinery. “If India finances Russian oil, it finances the war. Tell me, then, does the purchase of Russian gas not finance the war? Let’s be a little impartial,” he told a recent GLOBSEC forum in Slovakia, referring to European imports of Russian gas. India allows Russian oil to reach Western markets Exports of oil products from India, such as diesel, have meanwhile risen to 685,000 barrels per day from 580,000 barrels per day before the invasion of Ukraine. Much of the oil export is sold in Asia, but about 20% has been shipped across the Suez Canal to the Mediterranean to the Atlantic, essentially Europe or the United States, said Lauri Myllyvirta, chief analyst at Finland’s CREA Center. India is thus allowing Russian oil to enter Western markets, he added.