Saturday, July 2, 2022

Russia And India Alignment Grows - Oil Deal As India 'Gorges On Cheap Russian Oil'

Putin & Modi Hold Warm Phone Call As India Gorges On Cheap Russian Oil
TYLER DURDEN


Indian Prime Minister Narendra Modi and Russian President Vladimir Putin held an important phone call Friday wherein Modi underscored that India favors dialogue and diplomacy toward reaching a peaceful Ukraine solution. "In the context of the ongoing situation in Ukraine, Prime Minister reiterated India's long-standing position in favor of dialogue and diplomacy," a readout from his office said. But unlike interaction with Western leaders, including France's Macron, it appears Modi kept things relatively "light" when it came to rhetoric on Ukraine.

Also high on the agenda was the very uncertain and calamitous state of global energy and food markets. Modi had days prior addressed G7 leaders, saying, "Even in the present situation, we have constantly urged for the path of dialogue and diplomacy. The impact of this geopolitical tension is not just limited to Europe. The rising prices of energy and food grains are affecting all the countries."

But things aren't so dire for either Russia or India when it comes to energy, as both appear to be positively benefitting from the West's attempt to halt Russian energy flows to Europe, even as G7 countries mull imposing a price cap on Russian oil.


This as Russia is quickly muscling into India's oil market, with Modi's India only too happy to gorge on cheap Russian barrels, as Bloomberg underscored days ago, suggesting that Russia could now be positioned as India's biggest single supplier: "Deprived of many of its traditional European buyers, Moscow is on course to deliver somewhere between 1 million and 1.2 million barrels a day to the world’s third-largest oil importer this month, according to tanker tracking figures compiled by Bloomberg and two oil analytics firms," according to the report.

To review an astounding New York Times admission from last month on how the West's "punishing" of Vladimir Putin is going...

Russia’s invasion of Ukraine triggered global condemnation and tough sanctions aimed at denting Moscow’s war chest. Yet Russia’s revenues from fossil fuels, by far its biggest export, soared to records in the first 100 days of its war on Ukraine, driven by a windfall from oil sales amid surging prices, a new analysis shows.

Russia earned what is very likely a record 93 billion euros in revenue from exports of oil, gas and coal in the first 100 days of the country’s invasion of Ukraineaccording to data analyzed by the Center for Research on Energy and Clean Air, a research organization based in Helsinki, Finland. About two-thirds of those earnings, the equivalent of about $97 billion, came from oil, and most of the remainder from natural gas.

"The current rate of revenue is unprecedented, because prices are unprecedented, and export volumes are close to their highest levels on record," said Lauri Myllyvirta, an analyst who led the center’s research.


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