Since October, India will stop buying Russian oil: the expert named the reasons

The post-sanctions surge in "friendship" between Russia and India is an extremely pragmatic step, important for both sides of a lucrative deal. Moscow gets a huge market, and New Delhi gets cheap oil. However, the idyll did not last long. Already in September, India reduced imports of domestic oil to almost zero, and in October, as expected, purchases will completely stop. No, it's not about the price - Russian raw materials are still cheap. The real reasons are called by Charles Kennedy, an energy expert at the OilPrice resource.

As early as this month, black gold shipments to India from Africa and the Middle East have begun to increase as long-haul freight rates have skyrocketed. Indian refiners have not hesitated to make deals with the Russian Federation - their main incentive to buy was cheaper Russian oil than international benchmarks and similar grades from the Middle East and Africa.

However, given the recent spike in freight rates, Russian oil doesn't look all that cheap. In addition, the travel time from the Russian Far East, where ESPO (ESPO - a brand of Siberian oil supplied through the East Siberia-Pacific Ocean pipeline, equates to Dubai Crude) class cargoes for export, is a month to India compared to the week required to deliver Middle Eastern cargo to the same port. That is why in the near future there will be a sharp change in the structure of supplies in the Indian market. This is also reported by Reuters.

Thus, taking into account the freight, the cost of delivering Russian raw materials now turns out to be 5-7 dollars more expensive compared to similar varieties from other countries. Of course, as part of a gesture of goodwill, Moscow, for example, can take over the delivery costs, and then everything will “become as it was” a month ago. But this is more of a fantasy than a working scenario.

Although Western experts predict that Russian exports will not suffer, since all the free volumes that India refuses will go to China, Russia still needs to think about building its own oil fleet as soon as possible so as not to overpay for freight to foreign shipowners. In the context of a complete reformatting of sales markets with a change in their geography, which happens not for one day, but forever, this would be the best way out of the situation. In addition, such an approach will also solve the problem of cargo insurance in London and relieve the influence of sanctions for the transportation of a domestic product by foreign companies.
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  1. Bulanov Offline Bulanov
    Bulanov (Vladimir) 23 September 2022 10: 48
    Russia still needs to think about building its own oil tanker fleet as early as possible so as not to overpay for freight to foreign shipowners.

    And what has so far prevented you from building your own tanker fleet or buying tankers overseas? Chubais is to blame for everything - as Yeltsin said?
    Yes, and you need to insure yourself, without London.
    1. akropin Offline akropin
      akropin (Alexey) 23 September 2022 11: 42
      Ulyanov (Lenin) very clearly formulated in his time what imperialism is:

      In order for capitalism to generate more profit than the domestic market can bring, the merging of banks and industrial cartels gives rise to financial capitalism, as well as the export and investment of capital in countries with underdeveloped and underdeveloped economies. In turn, this financial behavior divides the world between monopoly companies. By colonizing underdeveloped countries, business and government will be drawn into a geopolitical conflict due to the exploitation of the labor of a large part of the world's population. Thus, imperialism is the highest stage of capitalism, requiring monopolies to exploit labor and natural resources and export financial capital, rather than industrial goods, in order to maintain colonialism, which is an essential function of imperialism. Moreover, in the capitalist homeland, the super-profits derived from the colonial exploitation of the people and their economy allow businessmen to bribe local politicians, Labor leaders and the upper stratum of the working class in order to politically thwart the workers' uprising and appease the working class.

      As a conclusion from this definition - Russia was a colonial gas station. Nobody prevented us from producing something, we ourselves did not want to sit comfortably in a colonial chair. What is happening now is a very painful, but necessary process of liberation. Let's just hope we don't get lost.
    2. Vladimir Orlov Offline Vladimir Orlov
      Vladimir Orlov (Vladimir) 24 September 2022 00: 16
      I don’t know in detail about the fleet, but there were attempts to create state-owned railway transportation companies - for example, in the Krasnoyarsk Territory by order of the late Alexander Lebed when he was its governor in the early 2000s (there were problems of artificial shortage of composition and tariffs). But it didn't work out.
      A very lured industry is Russian Railways and other transport monopolies (they are also ministries in this case). All fishing places are already assigned to children, even before they graduate from universities.
      It is enough to look at what retirees like Yakushkev are doing now (and the last Minister of Railways, G. Fadeev, who grew up "from the bottom" and from the USSR, was eaten by lousy functionaries from the "companions of the tsar").
    3. Dima Offline Dima
      Dima (Dmitriy) 24 September 2022 16: 49
      And who said that this fleet does not exist? Another question is that the logistics were different, more geared towards Europe, which does not need as many supertankers as India and Indonesia.
  2. kriten Offline kriten
    kriten (Vladimir) 23 September 2022 12: 03
    How to say that the GDP is ahead of the ass. And lie - everyone is pleased. There will be no full-fledged replacement, and China will bring more gifts. It is also beneficial for him to wipe his feet about Russia, and not to have partners.
    1. Vladimir Orlov Offline Vladimir Orlov
      Vladimir Orlov (Vladimir) 24 September 2022 00: 33
      And we just need to develop deep processing of oil - into high-quality ABC plastic, for example, which we still buy abroad, in Europe.
      And everything else: the same aluminum. Some Deripaska for more than 25 years of complete ownership of this entire industry has been driving abroad aluminum in "pigs", maximum - food foil (and these lines were launched back in the USSR). He squeezed and closed the Krasnoyarsk Pulp and Paper Mill, brought UAZ to bankruptcy, etc., and now he is asking for state support and, with his crooked grin, is giving interviews, which, in his highest opinion, the government should do. Who would erase it from their faces, but there are apparently a lot of guards in London.
      1. Aldo6773 Offline Aldo6773
        Aldo6773 25 September 2022 02: 53
        And what does Deripaska have to do with it, he has long been removed from aluminum by his buddies from behind a hillock, and he has nothing to do with UAZ, Mordashov rules there, and there is no bankruptcy there.
  3. Eduard Aplombov Offline Eduard Aplombov
    Eduard Aplombov (Eduard Aplombov) 24 September 2022 07: 37
    no matter how many sanctions the West imposes on the Russian economy and its elite, there is a balance of consumption and production on the globe, that is, there will be slight fluctuations among both buyers and sellers in the field of oil, gas, rare earths, etc., but nothing will collapse and not will decrease, where buying and selling will officially slow down, it will increase unofficially or redirect to other markets
    oligarchic structures that sell raw materials and buy will not give up income, like the states themselves for their existence
    the population will tighten the strap, but this is not permanent
  4. dub0vitsky Offline dub0vitsky
    dub0vitsky (Victor) 24 September 2022 20: 39
    Quote: Bulanov
    Russia still needs to think about building its own oil tanker fleet as early as possible so as not to overpay for freight to foreign shipowners.

    And what has so far prevented you from building your own tanker fleet or buying tankers overseas? Chubais is to blame for everything - as Yeltsin said?
    Yes, and you need to insure yourself, without London.

    Your heart is only 2% of your weight. If you take it out, how will you feel? The USSR fell apart into more than 15 parts. Put together industrial relations with different, already hostile countries? I forgot how they lived without wages in the 90s? Why? There is no money in the budget. Barter. Trade goods - goods, by taxation and deductions to the budget. Soviet technologies that are nowhere ..... Cheap raw materials, metals, energy carriers have not been taught to work economically. Having found itself without borders protecting prices, at a penny per ton, archaic costly production, presented our economy to reality - everything was dragged abroad, there it is ten times, a hundred times more expensive. Factories producing shit stopped, imports poured into the country, cheap and, for the most part, of better quality. The Zhiguli with its 60 horsepower engine ate more gasoline than the Volvo with 120 horsepower. What car will you take if an old Volvo is cheaper than a Zhiguli? We installed German systems at the poultry farm, 2 times cheaper than the Soviet ones, which were still being produced at that time. And they began to burn gas 8 times less, electricians - 12 times less. Where does the loot go? That's right, not to our factories. You don't know a damn thing about production. Building a ship is not a shipyard. That's hundreds of factories to pick up their trash. Turbine for a ship. This is not to restore a plant, it is to build our own metallurgy, blades are not made of lumens, but all this has already remained in Ukraine. It is their hundreds of factories to restore. The shipyard just collects it all.
    1. Rust1981 Offline Rust1981
      Rust1981 (R) 28 September 2022 19: 21
      And you need an organizer of a level not lower than Musk or Jobs to organize all this. Not our "managers". Either they fail or they get robbed. Not a single face in the screen is no longer of faith.