New Delhi. Since the outbreak of war between Russia and Ukraine, India has increased its import of oil from Russia. Due to the Ukraine war, Russia is facing sanctions from Western countries, due to which it has been forced to sell oil at cheaper prices. India had to face criticism from many countries including America for buying cheap oil from Russia. However, now a report has emerged that Saudi Arabia and the United Arab Emirates (UAE) are also buying Russian oil products at subsidized rates and using them for their domestic consumption.
There have been reports that these oil-rich countries of the Gulf are also buying oil from Russia and exporting it to countries like Pakistan and Sri Lanka. Saudi and UAE have emerged as major trading and storage centers for Russian oil and fuel.
These 6 months in one country and 6 months in another country, the rules and regulations of the world change
According to a report in the Wall Street Journal, Saudi and UAE are buying Russian crude oil at discounted rates and refining it in their country. Saudi and UAE are using Russian oil for domestic consumption while exporting their oil at market rates.
According to the report, Saudi and UAE are buying Russian naphtha oil at a discount of $60 and Russian diesel at a discount of $25 per tonne.
Gulf countries buying oil from Russia and selling it to other countries Both Gulf countries, especially the United Arab Emirates, have emerged as major trading and storage centers for Russian oil and fuel. The report states that UAE companies are importing Russian energy and selling it to Pakistan, Sri Lanka or East Africa.
Data from Kpler shows that last year the UAE bought 60 million barrels of oil from Russia but now this purchase has tripled. More than 10% of Russia’s oil is stored in Fujairah, the UAE’s main oil storage hub, according to data from Argus Media.
Where Saudi Arabia did not import oil from Russia before Russia’s invasion of Ukraine, now it is importing one lakh barrels of Russian oil a day. That is, it is buying about 36 million barrels of Russian oil in a year.
America has expressed objection US officials have objected to the growing ties between Russia and the Gulf countries. But Russia is selling its crude oil (Ural) at a discount of more than 30% to the international benchmark Brent crude, due to which the Gulf countries are buying oil, ignoring America’s displeasure.
Following the invasion of Ukraine, Western countries led by the US have imposed tough sanctions on Russia. These countries have limited or stopped the purchase of Russian oil. A price cap has also been imposed on Russian oil, under which it is prohibited to purchase Russian oil at a rate of more than $ 60 per barrel.
However, Russia has been fully capable of circumventing these sanctions from the West. While Russia’s marine crude oil exports were 3.35 million barrels in the quarter of 2022, it has increased to 3.5 million barrels a day in the first quarter of 2023.
India China together buying 90 percent Russian oil According to Kepler data, India and China together are buying 90% of Russian oil exports. The oil which Russia used to export to Europe, after the sanctions, that oil is now being received by India and China. Each country is buying more than 1.5 million barrels a day.
Despite this, Russia is not able to earn as much from oil as it used to do earlier. By selling oil at subsidized rates, it is not getting more profit than before. The International Energy Agency said on Friday that Russia’s oil export revenue was down 43% from the same period last year.
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