India and China continue to strengthen their economic ties with Russia, helping the Russian Federation implement large-scale energy projects despite international sanctions.
This is reported by Finway
Arctic LNG 2: India Supports the Russian Gas Sector
Last week, the sixth loading of liquefied natural gas took place this year at the sanctioned Arctic LNG 2 project. Currently, the tanker Arctic Vostok is anchored near the Koryak floating storage in the Kamchatka region, likely preparing for a new cargo transfer. The operator and owner of this vessel are two Indian companies registered in India, despite the tanker being under U.S. sanctions since last year.
India continues to actively import Russian oil. Oil Minister Hardeep Singh Puri stated that purchases are made in accordance with international regulations and the price cap set by the G7 countries. According to him, these supplies have helped avoid a global shock in the market and prevented world oil prices from rising to $200 per barrel in the event of a complete exit of Russian oil from the market.
“The import of the resource is conducted in compliance with international norms and the price cap established by the G7 countries. Moreover, these purchases have helped avoid a shock scenario that predicted a rise in world oil prices to $200 per barrel in case Russian oil were to exit the global market.”
At the same time, Russian oil is becoming increasingly cheaper for Indian buyers. According to market participants, the price of Russian Urals oil for deliveries at the end of September and in October has decreased by $3–4 per barrel compared to Brent oil prices.
The Indian company Nayara Energy, partially controlled by Russian Rosneft, has lost at least 25% of its raw material supplies. Following the introduction of EU sanctions in July, state companies from Saudi Arabia and Iraq ceased cooperation with Nayara, leaving the company fully dependent on supplies from Russia.
China and Russia: Agreement on “Power of Siberia 2” and Expansion of Gas Supplies
After years of negotiations, Russia and China have reached an agreement on the construction of the “Power of Siberia 2” pipeline. According to Gazprom, the new pipeline will allow for the export of up to 50 billion cubic meters of gas to China annually over thirty years. The price of Russian gas for Chinese consumers will be lower than for customers in Europe.
Analysts note that progress on this project will be a diplomatic achievement for Putin and will underscore the strengthening of relations between Russia and China amid the war against Ukraine and Western sanctions. Furthermore, Gazprom has agreed to increase gas supply volumes to China via the “Power of Siberia” route by an additional 6 billion cubic meters per year, bringing the total to 44 billion cubic meters.