Russia is actively seeking ways to circumvent new American sanctions in order to maintain the export of cheap oil products to India. According to available data, the country is exploiting loopholes: if crude oil is supplied by a company that formally has no ties to “Rosneft” or “Lukoil,” Indian refineries are not subject to US restrictions.
This is reported by Finway
Changes in Export Structure and Shadow Intermediaries
Analysts note the emergence of several new Russian oil exporters at the end of last year. These companies likely serve as shadow intermediaries between major Russian producers and refineries in India. They have already begun to dominate the export market, and it is expected that within the next two to three months, the entire supply logistics will be completely restructured according to new schemes.
“Currently, the Indian government has not issued any direct orders to state or private refineries regarding Russian oil.”
Due to sanctions, Russian oil is now priced at $9-10 per barrel cheaper than oil from the Middle East, allowing Indian companies to save up to $4 billion a year. The only exception is Reliance, which has temporarily halted imports of Russian oil due to risks associated with American and European sanctions.
Diversification of India’s Import Supplies
Despite Russia’s efforts, India continues to diversify its energy supply sources. For instance, Indian Oil Corp recently purchased its first batch of Ecuadorian Oriente oil for delivery at the end of March, and in December imported 2 million barrels of Castilla crude oil from Colombia. Thus, the country is gradually reducing its dependence on traditional suppliers while expanding the geography of imports of strategic energy resources.