Russian oil still flowing - Thank the EURO-PEONSA “significant” share of Russian crude oil is being re-exported through refineries in India to the U.S. and Europe, according to
the report from Helsinki-based think tank Centre for Research on Energy and Clean Air.
Since Russia’s invasion in late February, global oil prices have soared, giving refiners in India and other countries an added incentive to tap oil. Moscow is offering them at steep discounts of $30 to $35 a barrel, compared with Brent crude and other international oil now trading at about $120 per barrel.
Most of the ships that transport Russian crude are EUROPEAN in origin, which means placing tighter controls on shipowners would seriously limit the scope for this kind of contravention, the authors write.
EU, U.K. and Norwegian companies owned 68 per cent of ships making deliveries of Russian crude, with Greek tankers alone carrying 43 per cent,” the report says. “For deliveries to India and the Middle East, the share was even higher at 80 per cent.
“Nearly all of the tankers (97 per cent) were insured in just three countries, U.K., Norway and Sweden.”
As Western governments sought to pressure Moscow and many countries scrambled to wean themselves off Russian energy, the volume of Russia’s fuel exports fell 15 percent in May compared with the period before the invasion. But high fuel prices caused by rising global demand have kept money flowing into Moscow’s coffers, the report said, noting that Russia’s export prices were on average 60 percent higher than last year.
And a few countries increased imports of Russian fuel during the first 100 days of the war, including France, India, China, the United Arab Emirates and Saudi Arabia, the research center said.
In India, exports of oil products such as diesel have risen to 685,000 barrels per day from 580,000 barrels per day before the invasion of Ukraine. Much of its diesel exports are sold in Asia, but about 20% was shipped via the Suez Canal, headed for the Mediterranean or Atlantic, essentially Europe or the United States, Lauri Myllyvirta, a lead analyst at CREA, told AP.
“India is providing an outlet for Russian crude oil to get through the market,” he said.
In May, some 30 Russian tankers loaded with crude made their way to Indian shores, unloading about 430,000 barrels per day.