China and India give $24 billion in aid to Putin in energy race


Russia has earned $24 billion from selling energy to China And India only three months after the invasion of UkraineIt shows how high global prices are limiting efforts by the US and Europe to punish the president Vladimir Putin,

China spent $18.9 billion on Russian oil, gas and coal in the three months to the end of May, nearly double the amount a year earlier, the latest customs data shows. Meanwhile, India paid $5.1 billion in the same period, more than five times the value a year ago. This is an additional $13 billion in revenue from both countries in 2021 compared to the same months.

More spending is helping to make up for decreased purchases from the US and some other countries that have halted or slowed purchases to punish Russia for the war. The sanctions have raised prices for alternative supplies and fueled crippling inflation that threatens to send major economies into recession.

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“China is already buying essentially everything that Russia can export through pipelines and Pacific ports,” said Laurie Mylivirta, principal analyst at the Center for Research on Energy and Clean Air after the war broke out. Monitors energy flow from Russia. “India has been the main buyer of cargo out of the Atlantic, which Europe no longer wants.”

With energy prices being much higher than at this time last year, this spree is unlikely to end anytime soon, even accounting for huge discounts to global benchmarks Russia is offering to lure buyers. Used to be. On a volume basis, China’s imports continued to grow at a slower pace in June, while India may have an incentive to push for even more purchases in the coming months as EU sanctions on Russian oil take effect, Milevierta said.

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According to research by Myllyvirta, China and India still lag behind Europe in terms of total sales this year. However, Europe’s purchases will continue to shrink as import restrictions on coal and oil come into force and Russia cuts gas supplies to some European buyers.

Russia has longstanding trade and strategic ties with China and India, and along with offering steep discounts in prices, is accepting payments in the local currency this year to help keep trade flows to stronger countries .

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China is the world’s largest importer of energy and has dedicated pipelines for Siberian oil and gas. Even as its energy consumption was curtailed in the first half of 2022 – partly due to the Covid-19 lockdown – it spent far more on Russian energy due to higher prices and small increases in volumes.

India’s spending growth after the war has been far more dramatic, as it does not share a land border with Russia and its ports are generally too far away for cost-effective shipping. The country spent $8.8 billion on petroleum and coal imports from February 24 to June 30 for the full year in 2021, according to a trade ministry official who did not make the data public. Due to this, anonymity was requested. , A spokesperson for India’s trade ministry did not comment.

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In addition to the big jump in oil and coal, India also imported three cargoes of Russian liquefied natural gas since the start of the war, compared to one in the same period last year, according to Bloomberg ship-tracking data.

“Historically, India has taken in very little Russian oil, but the war in Ukraine and the Russian-origin oil embargo by the European Union have led to a rebalancing of oil trade flows,” Rystad Energy analyst Wei Cheong Ho said in a research. Note the last month.

—With assistance from Stephen Stapzinski and Ruchi Bhatia.



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