India, China Gobble Up Russian Oil Shunned By Market

Despite heavy US pressure not to boost purchases, India and other Asian nations are becoming an increasingly important source of oil revenue for Moscow, as the European Union and other allies cut off Russia's energy imports in response to sanctions over its war in Ukraine, Krutika Pathi and Elaine Kurtenbach reported for the Associated Press (AP).

Photo Insert: Such sales are boosting Russian export profits at a time when the United States and its allies are attempting to restrict financial assistance for Moscow's military effort.

Such sales are boosting Russian export profits at a time when the United States and its allies are attempting to restrict financial assistance for Moscow's military effort.

Despite a drop in export volumes in May, Russia earned 93 billion euros ($97.4 billion) in revenue from fossil fuel exports in the first 100 days of its invasion of Ukraine, according to a report released Monday by the Helsinki-based Center for Research on Energy and Clean Air, an independent think tank.

“Revenue from fossil fuel exports is the key enabler of Russia’s military buildup and aggression, providing 40% of federal budget revenue,” it said.

According to commodity monitoring provider Kpler, India, an oil-hungry country of 1.4 billion people, has consumed roughly 60 million barrels of Russian oil so far in 2022, compared to 12 million barrels in all of 2021. Other Asian countries, such as China, have seen a surge in recent months, but to a lesser level.

In an interview with the AP, Sri Lanka’s prime minister said he may be compelled to buy more oil from Russia as he hunts desperately for fuel to keep the country running amid a dire economic crisis.

Russia is moving to diversify its exports. Russian Ambassador Marat Pavlov met Philippine President-elect Ferdinand Marcos Jr. on Monday and offered Moscow’s help to provide oil and gas. He did not specify the terms. Marcos Jr., whose six-year term is set to begin June 30, did not say if he was considering the offer.

Since Russia’s invasion of Ukraine in late February, global oil prices have soared, giving refiners in India and other countries an added incentive to tap oil Moscow is offering them at steep discounts of $30 to $35, compared with Brent crude and other international oil now trading at about $120 per barrel.

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