Due to the growth of purchases of Russian energy resources by China and India, the effectiveness of Western sanctions against Moscow is decreasing, while there are fears that more and more countries will make “roundabout maneuvers” in relation to restrictions, according to the article by Nihon Keizai.
It is noted that while the US and the EU have imposed restrictions on the supply of Russian oil, China and India are increasing their purchases from the country, while Russia’s revenues from increasing the volume of supplies of resources to alternative purchasers have only increased.
“In particular, it [Russia] receives increased revenues from its energy exports with the support of Sino-Indian purchases, while the effectiveness of US and European sanctions is significantly reduced,” Nihon Keizai writes.
According to Refinitiv, the volume of crude oil imported by China from Russia by sea, excluding pipelines, in May amounted to about 800,000 barrels per day, which is an increase of more than 40 per cent compared to January. The sea imports of Russian oil to India increased from zero in January to a bit under 700,000 barrels per day in May.
“These are very impressive figures,” the author of the article emphasized.
In addition, while purchases of Russian coal in Japan and other countries have declined, its exports to India have increased significantly. China is also working to expand the supply of this resource, the article says.
At the same time, there is a high probability that China’s imports of Russian liquefied natural gas (LNG) will significantly increase in the summer. It is also reported that Indian energy companies have significantly expanded spot purchases of LNG from Russia.
“Such an important point should also be taken into account. Although the supplies of Russian pipeline natural gas to some European countries was suspended (for example, to Poland and Bulgaria), this did not affect them in any way in terms of reduction in general. On the contrary, they are even increasing against the background of a significant increase in European prices for imported natural gas,” Nihon Keizai points out.
As specified, the US and Europe are asking China and India not to buy Russian oil and coal, but with the rapid rise in world energy prices, the economic benefits of purchasing cheaper Russian products are great, the article notes.
As reminded, after the start of the Russian special military operation in Ukraine, the West increased sanctions pressure on Moscow. Brussels is seriously considering the option of abandoning Russian oil and gas. Last week, the EU permanent representatives approved the sixth package of sanctions, including an oil embargo, disconnection from SWIFT Sberbank, two more Russian and one Belarusian banks.
Source: RIA Novosti