How and how much Russia collects from energy exports to China and India
The trade in oil, coal and gas to China and India has allowed Russia to raise $ 24 billion, despite sanctions. All the details
In the three months following the invasion of Ukraine, which began on February 24, Russia has obtained 24 billion dollars through the sale of energy to China and India, despite attempts by the United States and Europe (especially) to economically isolate the Vladimir Putin regime.
PURCHASES FIGURES
From late February to late May, Al Jazeera reports, China bought crude oil, natural gas and coal from Russia for $ 18.9 billion, almost double the same period in 2021. In the same period, India has imported Russian hydrocarbons for 5.1 billion, five times as much as a year earlier. For Moscow, these additional sales to Beijing and New Delhi translated into extra revenues of 13 billion, compared to February-May 2021.
CHINA AND INDIA COMPENSATE THE SANCTIONS
The increase in exports to the two Asian countries helped Russia offset the decline in sales to America and Europe. Lauri Myllyvirta, an analyst at the CREA (Center for Energy and Clean Air Research) think tank, has been monitoring Russian energy flows since the beginning of the war in Ukraine and told Al Jazeera that "China is already buying basically everything that Russia can export through pipelines and ports on the Pacific ”. India, on the other hand, "was the main buyer of Atlantic cargoes that Europe no longer wants".
RELATIONSHIPS INTENDED TO LAST
According to the analyst, it is very likely that these trading relations between Moscow and the two Asian nations will continue in the months to come. Also because the high energy prices incentivize New Delhi and Beijing – both are large importers of fossil fuels – to continue with the purchases of Russian hydrocarbons, which the Kremlin is selling at a strong discount compared to international benchmarks (such as Brent for the oil, which is trading at around $ 101 per barrel).
DISCOUNTS AND PAYMENTS IN LOCAL CURRENCY
Myllyvirta says Chinese energy imports from Russia continued to grow in June, albeit slowly. As for India, it could decide to buy even more crude oil from Moscow in the coming months, once the European embargo on Russian oil comes into force, which could further increase the price of barrels, effectively reducing their availability on the market ( Russia is a major exporter).
To encourage the continuation of energy sales to China and India despite international sanctions, Russia, in addition to offering large discounts on the price, is also accepting payments in local currencies (the Chinese yuan and the Indian rupee).
THE CASE OF INDIA: OIL, COAL AND LNG
The increase in Russian hydrocarbon imports was notable especially in India, which before the war – for example – bought very little oil from Moscow. Furthermore, the country has no borders with Russia (China, on the contrary, is connected to the Siberian fields by pipes) and its ports are distant, a condition that increases the costs of maritime transport. Nonetheless, from February 24 to June 30, India spent $ 8.8 billion to import coal and oil from Russia – more than double the amount spent on all Russian products in the whole of 2021, according to a source in Al . Jazeera .
New Delhi has also bought three shipments of liquefied gas from Russia since the war in Ukraine. In the same period of 2021, it had only imported one.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/russia-aumento-esportazioni-energia-cina-india/ on Thu, 07 Jul 2022 08:31:07 +0000.