Experts explain India's record purchases of Russian energy resources

19 2022 June 30

Over the past few months, India has literally burst into in the top ten buyers-importers of various Russian energy raw materials, although it was not included in the top twenty before. Moreover, New Delhi is not going to stop at the results achieved, and despite the dissatisfaction of the West represented by the United States and the European Union, which imposed sanctions against Russia, as well as the jealousy of its main geopolitical competitor, China, it is increasing cooperation with Moscow.

India's oldest English-language newspaper, The Times of India, told its readers that the fast-growing South Asian country continues to increase its purchases of Russian energy resources, buying coal and oil at a serious discount from their market value. From June 1 to June 15, Indian companies imported coke and anthracite worth $331,17 million, which is 6 times more than in the same period in 2021. According to estimates, India has been buying coal from Russia in recent weeks for an average of $16,55 million per day, although last year's daily purchases were at the level of $7,71 million, i.e. now pays more than twice as much.

As for the purchase of oil by India from the Russian Federation, since the beginning of June they have also grown significantly and in monetary terms amount to $110,86 million per day. Prior to this, New Delhi paid Moscow $31,16 million a day for oil, i.е. now pays more than 3 times more. At the same time, the volume of purchased Russian oil since the end of May has increased by more than 31 times, to $2,22 billion.

The experts explained what caused the record purchases. In their opinion, the main thing in this matter is the price, the lower it is, the more they want to buy, since this directly affects the economy India and the welfare of its citizens. This is especially true when the cost of resources and fuels is skyrocketing around the world. For example, offshore subsidiaries of Russian coal traders such as Suek AG, KTK and Cypriot Carbo One offered discounts ranging from 25% to 30% on raw materials.

Traders from the Russian Federation are liberal in terms of payment methods and accept payments in Indian rupees and UAE dirhams. At this rate, imports will reach a maximum in the last eight years

- summarizes the publication.

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Bakht

+2

19 June 2022 12: 58

At the same time, the volume of purchased Russian oil since the end of May has increased by more than 31 times, to $2,22 billion.

The experts explained what caused the record purchases. In their opinion, the main thing in this matter is the price, the lower it is, the more they want to buy, as this directly affects the Indian economy and the well-being of its citizens.

Just two quotes from the article.
And what did the expert say? The fact that Russia is FORCED to sell its oil at a discount of 30-40 dollars per barrel?
That is, if the price on the stock exchange is $120, then India buys it for $80-90.

If the volume of purchases has increased by 31 (!!!) times, then this means only one thing. You don't need to be an expert to understand that India is reselling Russian oil and earning $30 to $40 per barrel. I will never believe in my life that Indian refineries were running at 3% of their capacity (3 x 31 = 93%). The fact that India earns on speculation is understandable. Another thing is inexplicable - why should Russia sell its oil at a discount? Europe has learned its lesson with reduced gas supplies. If supplies to India are reduced, then the States and the UK (especially the UK) will learn their lesson. And the war in Ukraine will end within a couple of months by the complete surrender of the West.
I return to my phrase. Why is Russia FORCED (???) to sell its oil at a discount? On the one hand, they write about the influx of currency into the country, which cannot be disposed of, and this leads to a re-strengthening of the ruble. On the other hand, they are trying to sell their non-renewable resource more cheaply.
By the way, the debit of oil wells is much easier to regulate than gas wells. And if difficulties may arise with the operation of gas wells, then with oil wells they are an order of magnitude less.
1. Polente the Wanderer
  
  0
  
  19 June 2022 16: 18
  
  Brent brand (light sweet oil) is sold for $120. We do not have such oil. We sell mainly Urals (a mixture of heavy, high sulfur and light). So the cost is even lower.
  We sell at a discount because there is nowhere to go. We don’t have enough storage to wait and sell at a normal price, we didn’t build it because we didn’t see the need.
  It is simply impossible to stop pumping oil, besides the fact that the workers will have a downtime, ..., other costs ...
  Oil spouts only at the beginning when a well is drilled, and then it is necessary to force it (it is mostly heavy) to be squeezed out to the surface, that is, to pump water to create pressure. Geological and natural factors may not allow resuming oil production after a stop ...
  That is, some losses, but also to pay rent to the state ...
  1. Bakht
    
    -1
    
    19 June 2022 17: 12
    
    It is quite possible to reduce production. This is done quite simply.
    I don't comment on everything else. You can argue ad infinitum....
    1. Polente the Wanderer
      
      0
      
      19 June 2022 18: 27
      
      How to reduce?
      Conservation?
      Stub?
      Or just reduce oil production?
      The cost of oil is in the range of 16-30 dollars. The state directly or indirectly owns companies or receives income from oil production, export and, accordingly, no official will be happy that even such a profit (when selling at a discount) is coming. Especially beyond a certain cut-off the money goes to state funds and then is invested almost free of charge in government securities of the United States and other countries. In Norway, money has always been invested in high-yield securities.
  2. Bakht
    
    +1
    
    19 June 2022 17: 40
    
    Brent brand (light sweet oil) is sold for $120. We do not have such oil. We sell mainly Urals (a mixture of heavy, high sulfur and light). So the cost is even lower.
    
    the price of Urals oil today is formed with a spread of 2,5-3 dollars to the price of benchmark Brent oil
    
    https://market-prices.com/Crude_Oil/Neft_Urals_cena_segodnya.html
    1. Polente the Wanderer
      
      0
      
      19 June 2022 18: 42
      
      Ministry of Finance data
      
      The average price of Urals oil in January-April 2022 was $84,68 per barrel, in January-April 2021 - $60,47 per barrel.
      
      https://minfin.gov.ru/ru/press-center/?id_4=37903-o_srednei_tsene_na_neft_marki_urals
      
      And also
      
      For the previous monitoring period, which covered part of the "pre-sanctions" era (February 15 - March 14), the difference in the average price of Urals and Brent was much less significant - $95,59 versus $104,97, that is, the discount was less than $10.
      
      http://www.finmarket.ru/news/5701198
Polente the Wanderer

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19 June 2022 19: 12

List of oil quotes
https://www.profinance.ru/chart/urals/
https://www.profinance.ru/chart/brent/
1. Bakht
  
  0
  
  19 June 2022 23: 38
  
  You can argue ad infinitum and cite different sources. As you can see, even on official websites you can find information in favor of both your and my points of view.
  The oil trade has always been shrouded in mystery. Do you know what is the funniest thing about all the "analytical" articles about the cost of oil? The fact is that Brent oil does not exist in nature. The development of the deposit was recognized as unprofitable. The Brent field is mothballed and not a single barrel of oil is produced there. But ... a mixture of different varieties was called Brent and said that it was a reference. Because, you see, it comes from the North Sea. Anglo-Saxons, what to take from them ...
  But this is so, fiction.
  
  Well flow control is easily achievable. Oil is, roughly speaking, a liquid. And like any liquid, it is incompressible (or weakly compressible). Therefore, extracting it from the reservoir does not lead to total destruction of the reservoir. When used correctly, it will mix with water. This is another assumption. They don't pump clean water. Additives surfactants (surfactants). Therefore, the debit is easily regulated. Unlike gas wells. When extracting gas to the surface, its volume can increase by tens and hundreds of times. Collectors break. Therefore, adjusting the flow rate of gas wells is not a trivial task.
  
  The question remains, which is more important?
  The first way is to sell oil at a big discount (India is already demanding a 30% discount instead of $30%) and fuel the West. The result is the filling of the budget and the lengthening of the terms of the SVO. And this is the life of Russian people.
  The second way is an oil embargo for a couple of months. Loss of money and acceptance of the surrender of the West in these same couple of months. In fact, I would impose a total embargo on ANY export during the war. Money is not blood. You can also be patient.
  
  The state directly or indirectly owns companies or receives income from oil production, export and, accordingly, no official will be happy that even such a profit (when sold at a discount) is coming.
  
  As you can see, your phrase contains the words "state", "companies", "income", "official", "profit". And I write about the blood of soldiers who die for these words.
  Pay attention to the video from the liberated cities of Ukraine. All around I see red flags and hammer and sickle flags. And flags are copies of the "banner of Victory". I agree with you, not a single "official" will like these shots.
  1. House 25 Sq. 380
    
    -1
    
    20 June 2022 13: 38
    
    The cost of Urals on the spot is 100 bucks....
    Do not spread false information about "discounts" of $30 or 30%: this is no longer relevant since April....
    1. Bakht
      
      -1
      
      20 June 2022 20: 31
      
      Information from May 22, 2022
      
      India wants to buy oil from Russia for less than $70 a barrel to offset the risks associated with financing supplies after Western sanctions imposed on Moscow. This was reported by the NDTV channel on Wednesday, citing informed sources, TASS informs.
      
      This is at a spot price of $105. Calculate the percentage yourself.
      1. House 25 Sq. 380
        
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        21 June 2022 00: 27
        
        One significant amendment: wants, but Rosneft refused to sell ....
        The discount is calculated not from the Urals spot, but from the Brent spot; Spot Urals - this is the price perfect deals...
        
        Bakht
        
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        21 June 2022 06: 08
        
        There is information that Rosneft refused to sell at that price? Can you provide a link?
        
        House 25 Sq. 380
        
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        21 June 2022 14: 13
        
        What for?
        You did not give a link that India bought oil at less than $70 a barrel....
        I’ll just give you a hint: the issue of chartering and insurance of tankers has been resolved, as well as settlements, so give a discount not at all...
        And Rosneft calmly announced to the Indians, they say, oil for sale lacks...
        
        Bakht
        
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        21 June 2022 16: 18
        
        Negotiations are ongoing. So the issue is not yet resolved. And according to statistics, the price for India is about $70.
        
        The exact price offered by Russia to India is unknown, but oil market analysts believe that the discount for Urals in relation to Brent oil, which is usually taken as the basis for price regulation, is about $30 per barrel.
        
        Once again, to understand the situation. The financial component of the contracts is never published anywhere. This is common practice. According to indirect data, analysts believe that the discount is $30 in the first half of the year. Negotiations are now underway for the next 6 months. Yes, Rosneft said that there is no excess oil. But that's because India wants to double its purchases. Of course, there is no such amount of oil. Plus, India already wants 30% of Brent. In any case, such information was in the press. Another problem is delivery. Rosneft wants the "pay and carry" principle. India, on the other hand, wants delivery to be the responsibility of the seller.
        So, your first message that I give false information, I do not accept. Don't mislead readers. And try to find a link to your statements.
        
        House 25 Sq. 380
        
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        21 June 2022 21: 22
        
        I see you have already found: Thompsonreuther materials....
        Logic dictates: since India is not being sold increased volumes at 70, it means that these volumes go somewhere to ANOTHER buyer and not at all at 70....
        
        And the way a serious conversation went, so immediately "the financial component of contracts is never published anywhere" and "indirect data", and BEFORE that "easily and even elegantly" we scatter discount numbers ....
        
        Oh, by the way: no "indirect data" is needed: there is spot market...
        This is price of actually completed transactions...
        
        Bakht
        
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        21 June 2022 23: 34
        
        Have you remained with your wrong opinion? And the most perfect nonsense has already begun, like "the spot market is the price of actually completed transactions."
        After that, there is absolutely nothing to discuss. As a serious conversation began, your complete inconsistency immediately became clear.
    2. Bakht
      
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      21 June 2022 06: 17
      
      As for the "false information" you are wrong. Oil was sold at a discount of $30.
      And your second inaccuracy. Rosneft has not refused to sell oil. Negotiations are currently underway for a new contract for 6 months. Volume and price were not disclosed. But India wants a substantial discount.
      So check your information.
      1. Polente the Wanderer
        
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        22 June 2022 13: 20
        
        There are no messages on the Rosneft website about negotiations on the supply of oil.
        Rosneft signed a contract with Indian Oil for the supply of up to 2 million tons of oil to India
        December 06 2021
        Rosneft and Indian Oil Corporation Limited (IOCL) have signed a contract for the supply of up to 2 million tons of oil to India through the port of Novorossiysk by the end of 2022.
        https://www.rosneft.ru/press/releases/item/208725/
    3. Bakht
      
      0
      
      21 June 2022 19: 37
      
      The cost of Urals on the spot is 100 bucks....
      Do not spread false information about "discounts" of $30 or 30%: this is no longer relevant since April....
      
      I had to look up information. Surprisingly, she came to the surface.
      https://www.google.com/amp/s/neftegaz.ru/amp/news/Trading/740161-u-rosnefti-ne-ostalos-svobodnoy-nefti-dlya-zaklyucheniya-dopolnitelnykh-kontraktov/
      I hope this source is authoritative enough?
      
      Before the start of the Russian special operation in Ukraine, the discount averaged $3/bbl, but after February 24, it increased sharply, reaching an all-time high of $37,47/bbl. April 19, 2022
      By June 6, 2022, the discount narrowed to $33,51/bbl, but then slightly increased, amounting to 34,21 USD/bbl. on June 8.
      
      What's out of date since April?
  2. Polente the Wanderer
    
    0
    
    21 June 2022 22: 02
    
    Urals is also an artificial formation.
    Oil is pumped from depths of 1,5 km. Will there be displacement of layers with a decrease in production, stops?
    Preventing this through various methods will in any case be more expensive than selling oil at a discount. And we will feed the East and not the West. Most of them themselves want to stop oil imports. True, there is a possibility that the supply addresses of the main oil producers will change ...
    But since 2014, if memory serves, despite the bombing of the DPR and LPR, supplies of fuel and lubricants to Ukraine continued from Belarus or from Russia through Belarus ...
    We weren't there?
    
    Exports from Russia to Ukraine for the period February, 2014 - April, 2021 amounted to $63.3 billion.
    The main exports were "Mineral products" (34%), "Products of the chemical industry" (16%).
    
    https://ru-stat.com/date-M201402-202104/RU/export/UA.
    But officially we don’t have a war. There is a special operation.
    And our soldiers died before in wars that we officially did not wage ...
    
    Total - 13 people. These data first appeared in the Pravda newspaper on August 835, 17. Subsequently, the total figure increased slightly. As of January 1989, 1, irretrievable losses in the Afghan war (killed, died from wounds, diseases and in accidents, missing) were estimated as follows
    
    - Krivosheev G. F., Andronikov V. M., Burikov P. D., Gurkin V. V., Kruglov A. I., Rodionov E. I., Filimoshin M. V. Russia and the USSR in the wars of the XX century. Losses of the Armed Forces: A Statistical Study / Ed. ed. G. F. Krivosheeva. - M.: OLMA-PRESS, 2001. - S. 537-608 p. — (Series: Archive). – Circulation 5 copies. — ISBN 000-5-224-01515.
    And we, with just a limited contingent of Soviet troops, supported the government forces of Afghanistan in a military conflict
    
    on the one hand, and the armed formations of the Afghan Mujahideen (“dushmans”), who enjoy the political, financial, material and military support of the leading states of NATO, China and the conservative Islamic world, on the other hand
    1. Bakht
      
      -1
      
      21 June 2022 23: 39
      
      Understood nothing. "Horses mixed up, people ..."
      The start is fantastic. This is me about the displacement of layers and production from a depth of 1,5 km. It was fun....
      1. Polente the Wanderer
        
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        22 June 2022 11: 31
        
        We laugh all our lives, only for some reason it doesn’t get easier to live ...
2. Bakht
  
  +1
  
  19 June 2022 23: 47
  
  Here is a link to an interesting article
  Russia's Indian maneuver became a death sentence for Western energy
  https://riafan.ru/23495625-operativnaya_reaktsiya_indiiskii_manevr_rossii_stal_prigovorom_dlya_energetiki_zapada?utm_source=finobzor.ru
  I would like to ask a question to Mr. Alexander Galushka, the one who is "deputy secretary of the Public Chamber of the Russian Federation, an economist." It's like a quote
  
  Oil supplies increased six times, coal supplies increased seven times, and gas in the form of LNG increased almost tenfold. This Indian maneuver came as a complete surprise to the United States, in any case, its speed. Therefore, he became a sentence for Western energy, not ready for the indefinite loss of Russian resources
  
  Is this "economist" quite seriously sure that India processes all these energy resources in full? Have they built new refineries or LNG terminals? Do they burn coal in power plants or store it in the open? And the Indian economy is not a "Western economy"?
  The West receives energy resources from Russia at a big discount. Through India. And people like Galushka should first think about what is in his skull.
  
  And how did you want? What they put into the brains is what remains there!
  1. The comment was deleted.
  2. Polente the Wanderer
    
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    22 June 2022 13: 01
    
    Rosneft owns a 49,13% stake in the Indian company Nayara Energy, which includes first-class assets, including a refinery in the city of Vadinar with a capacity of 20 million tons per year. The plant is the second largest in India and one of the most technologically advanced in the world. Nayara Energy's business also includes a deep water port that can handle VLCCs and one of India's largest retail chains. Nayara Energy plans to further expand its filling station network in India - up to 8 in the next 3 years.
    
    Department of Information and Advertising
    PJSC "NK" Rosneft "
    6th of December 2021
    
    https://www.rosneft.ru/press/releases/item/208727/
    Rosneft sells oil through India
Polente the Wanderer

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22 June 2022 13: 47

The official information of the Customs Service contains export data only for January 2022.
http://customs.gov.ru/folder/513
Rosstat provides official information on foreign trade only until April 2021.
https://rosstat.gov.ru/folder/11193.
All other materials, data on the sale of any goods abroad at the moment cannot be officially confirmed. These materials, given at the moment, are either conjectures of various authors, publishers ... or information received from some administrators of a particular company, structure over a cup of coffee, tea or something stronger ...
1. Bakht
  
  0
  
  22 June 2022 17: 24
  
  Information about the discount of $34 for the beginning of June is given on the website of the Neftegaz magazine. Quite a solid source.
  But if you accept your point of view and discuss prices over a cup of brandy, then your information is also not credible.
  And now let's try to figure out a member to the nose.
  The contract for the supply of oil for a period of 6 months, Rosneft signed in December 2021. With two state-owned companies in India. There, the price formula is spelled out rigidly and is not disclosed. But there is no discount. This is a number van fact.
  Fact number tou. These companies refuse to renew contracts under the previous scheme. And they demand a discount for the next 6 months.
  Number fries fact. In the first half of 2022, private oil companies sharply increased their purchases of Russian oil at a discount. As respectable people say, almost 5-6 times. They don't have the capacity to process that much oil. But they are buying. Where they then merge it - there is a great secret. Now there is information that India (these same private companies) want more oil. Up to 1 million barrels per day. Considering that the entire export of Russian oil products is 5-6 million barrels, then Rosneft reasonably stated that such an amount of oil is not physically available.
  
  Now back to my first post. Russia sells oil at a discount of $30 per barrel, while Indian companies resell it and earn up to $30 per barrel. What is wrong here?
  More fun on gas. I have not seen information that new LNG terminals have appeared in India. And supplies have increased exponentially. The same goes for coal. Is there any information that India is bathed in electricity? And on every tree there hangs "Ilyich's light bulb"?
  
  Therefore, back in March, I wrote that trade with India should be minimized. These energy resources go to the West.
  
  Dixi.
  1. Polente the Wanderer
    
    0
    
    28 June 2022 22: 12
    
    Information about the discount of $34 for the beginning of June is given on the website of the Neftegaz magazine. Quite a solid source.
    
    Provide data from Trusted Sources.
    No need to carry nonsense.
    Your link "https://www.google.com/amp/s/neftegaz.ru/amp/news/Trading/740161-u-rosnefti-ne-ostalos-svobodnoy-nefti-dlya-zaklyucheniya-dopolnitelnykh-kontraktov/
    I hope this source is authoritative enough?".
    This is from the Neftegaz.RU website. But this is not a Source.
    Neftegaz just refers to unverified data from others, specifically: "reported to Reuters", "which, according to Bloomberg", "Reuters clarifies", "according to Reuters", "Data from Thomson Reuters", "Indian Express previously reported" - https://neftegaz.ru/news/Trading/740161-u-rosnefti-ne-ostalos-svobodnoy-nefti-dlya-zaklyucheniya-dopolnitelnykh-kontraktov/.
    Neftegaz himself does not claim anything ...
    1. Bakht
      
      0
      
      28 June 2022 22: 59
      
      Keep on "talking nonsense"
      Reliable sources are the capacities of Indian refineries. The second reliable source is that India has increased its purchases of Russian oil by 50 (!) times.
      The fact that the United States is buying Russian oil through India has long been no secret. Anyway, the White House press secretary declined to comment on this FACT. In the same way, Europe buys Russian oil under the brand name "Latvian oil".
      It's boring with you .... You don't provide any sources at all.
    2. Bakht
      
      0
      
      28 June 2022 23: 09
      
      WSJ describes a scheme to circumvent US sanctions on Russian oil: India is involved
      
      Indian petrochemical giant Reliance Industries has increased its imports of Russian oil by seven times compared to pre-war levels. On April 21, a tanker chartered by Reliance left the Indian port of Sikka with a cargo of alkylate (gasoline fraction) without a specified port of destination, and on May 22 it successfully unloaded in New York. Interviewed experts suggest that Russian oil was used for its production.
    3. Bakht
      
      0
      
      28 June 2022 23: 37
      
      https://www.theguardian.com/business/2022/jun/26/concerns-india-back-door-into-europe-for-russian-oil
      Concerns grow that India is 'back door' into Europe for Russian oil
      
      The tanker's arrival came as India ramped up imports of Russian oil. The Asian nation's willingness to snap up Russian crude at discounts of up to 30% has undermined efforts from the US, Europe and the UK to deplete Vladimir Putin's war coffers by curtailing imports.
      
      “Indian refiners are clearly taking significant volumes of discounted Russian crude and then re-exporting a material proportion of refined product back out of the country,” said the Shore Capital analyst Craig Howie.
      
      How many more references do you need to believe the obvious? Type in the words Russia oil India into a search engine and you will get a full pile of articles on this topic.