Two large Indian refineries urgently stopped buying Russian oil

This year, India has become a major importer of Russian oil, not being afraid of the world's "condemnation", even after the start of the Russian special operation in Ukraine. In some ways, even China, Russia's ally, was more vague about the sanctions against Moscow, and New Delhi showed confidence in its position and continued to buy oil both at the state level and through private companies. Now there has been a turning point in this situation. OilPrice writes about this.

Two large state corporations Indian Oil Corporation and Bharat Petroleum Corporation Limited abruptly suspended purchases of Russian oil. These major Indian refineries are awaiting more clarity on the EU sanctions regime. We are talking about secondary sanctions that can be applied to producers of petroleum products.

These companies suddenly stopped processing spot deliveries of Russian oil, which are due after December 5, the day the EU embargo on Russian oil supplies by sea comes into force.

Experts predicted that India's oil imports from the Russian Federation would decrease in September, but this did not happen, the event of a decrease in supplies of domestic raw materials to the region passed without significant changes in indicators, even despite an increase in tanker freight rates. As for the October refusal of Indian buyers to deal with Russian oil, this phenomenon is more serious. It threatens Russian manufacturers with the loss of another important market.
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  1. Bakht Offline Bakht
    Bakht (Bakhtiyar) 19 October 2022 09: 31
    If the EU imposes a ban on the resale of Russian oil, then India will not buy.
    As long as there was a discount on Russian oil, India was earning a lot of money. And Russia, through India, continued to supply its opponents with a valuable resource. Or rather, enemies.

    It was clear that Indian purchases would decline. The first reason is the reduction of the discount. If in the spring it was up to $30, now the discount has dropped to $10. The second reason is the refusal to insure ships and increase the cost of freight. It is no longer profitable for India to engage in speculation. But India itself does not need so much oil.

    For Russia, the problem is to reduce production. But just the other day, Russia and the Saudis decided to reduce production by 2 million barrels per day (1 million for each country). So there will be no loss in terms of money. There will be problems with the reduction of jobs in the oil and gas industry.

    Good article

    And now - to the pure practice. The shelf life of oil is longer than the shelf life of gasoline, kerosene and diesel fuel - these are the laws of chemistry. If you don’t like these laws, just pick up any other planet for yourself, there are a huge number of them in the Universe. Different refineries use different mixtures of oil of various grades, therefore, in fact, the world oil market has arisen and exists.

    Do you want Russia to cut itself out of this market? Then, as a real example, our refineries in Komsomolsk-on-Amur and Khabarovsk, which operate in a fuel-deficient region, but supply oil products for export. These factories are mercilessly criticized: what kind of export if they themselves do not have enough? Critics are alternatively mentally gifted because they simply don't know how oil is refined. The final products are not only gasoline, kerosene, diesel fuel, but also fuel oil with tar. If you want to get gasoline, figure out where to put fuel oil, tar and asphalt fractions. Far Eastern refineries have found buyers outside of Russia, because there is no other way out: there is nowhere to put such a quantity of fuel oil with tar.

    Do you want all 500 million tons of oil produced annually in Russia to be completely processed here? Well then, invent a way to somehow use tens of millions of tons of fuel oil, invent ways to recycle tar lakes.

    But that's not all. “Export only refined products”... And what, the whole world is sitting and waiting, when will Russia finally begin to take over a larger and larger segment of the market? There are no competitors, and those who are are sleeping and seeing how Russia will allow them to close their business? Right? That is, it is possible to withdraw from all oil markets and immediately subjugate the entire world market of petroleum products? I have to once again advise you to look for a more suitable planet. We have only the Earth at our disposal, we have here on the international markets the bestial grin of imperialism.

    By the way, it's not just about oil.