China, India buy millions of barrels of cheap Russian oil in a week

China, India buy millions of barrels of cheap Russian oil in a week

 

Asia overtook Europe for the first time to become Russia's largest oil buyer in April. China and India took advantage of cheap oil purchases despite the bans targeting Moscow.



According to Bloomberg, the amount of Russian oil transported on tankers is at a record level. India and China have become major customers for Russian oil, after other countries restricted imports of the oil to punish Moscow for the hostilities in Ukraine.



According to data and analysis firm Kpler, between 74-79 million barrels of Russian oil have been transported on tankers in the past week, more than double the 27 million barrels before the Russia-Ukraine conflict.



Asia overtook Europe for the first time and became the largest customer of Russian oil in April. According to Kpler, this gap will soon widen next month.

The amount of Russian oil transported on tankers is at a record level as Asian buyers increase their purchases of Russian oil. Photo: Reuters.



India, China increase the purchase of Russian oil

The sharp increase in the amount of Russian oil shipped by sea shows that the global energy market has plunged into chaos after Moscow's invasion of Ukraine. The US, UK and many European Union (EU) companies have turned away from Russian products, forcing the country to turn to Asian customers.


On May 25, European Council President Charles Michel said he was confident that the bloc could reach an agreement to ban Russian oil before its next meeting on May 30.



However, Hungary remains an obstacle to the EU's embargo plan. The country is asking about 750 million euros ($800 million) for refinery upgrades and pipeline expansion from Croatia so it can reduce its dependence on Russian oil.

Even if an official ban has not been issued, the amount of Russian oil traded on the market still plummets. Because buyers and traders avoid dealing with Russian fuel and crude oil suppliers.


The bans on Russian financial institutions created an implicit ban on the country's energy industry.

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