India Is Selling Russia’s Cheap Oil To America

https://www.reuters.com/business/ener... A US official said on Friday that India can buy as much Russian oil as it wants as long as it doesn't use Western insurance, finance, and maritime services that are covered by the "cap In an interview with Reuters, U.S. Treasury Secretary Janet Yellen said that the cap would still lower oil prices around the world while cutting Russia's income. The interview took place at a conference on US-Indian economic ties. Once the European Union stops buying oil from Russia, Russia won't be able to sell as much oil as it does now without using the price cap or making big price cuts from what they are now, she added The existence of the cap would give India, China and other major buyers of Russian crude leverage to push down the price they pay to Moscow. The establishment of the cap would provide India, China, and other large consumers of Russian crude with power to reduce the price they pay Moscow. Other than China, India is Russia's largest oil buyer. "Russian oil is going to be selling at bargain prices and we're happy to have India get that bargain or Africa or China. she said Yellen also mentioned India and private Indian oil companies "may also buy oil at any price they want as long as they do not employ Western services and instead find alternative services. And either option is OK." Such comments come only a week after External Affairs Minister S Jaishankar stated that India will continue to import Russian crude since it benefits the country. India supplies oil America Russia supplies nearly a sixth of the global oil and gas supply. Russia's dominance is particularly evident in Europe, where it supplies more than 20% of the continent's oil and more than 30% of its gas. Several countries in Europe, including Austria, Finland, Poland, Slovakia and Hungary are dependent on Russia for 50% to 100% of their oil and gas imports. With Russia's invasion of Ukraine, Europe's reliance on Russian oil and gas lead to a crisis of survival. And now according to the reports India is selling cheap oil from Russia to the United States. According to market sources, multinational oil dealers Vitol and Trafigura each purchased a cargo of vacuum gas oil (VGO) from the Indian refinery Naira Energy for $10-15 per barrel. According to sources, this shipment will be shipped from India's Vadinar Port to the United States or Europe in December. VGO is a type of crude oil used to make gasoline and diesel. Earlier, the Aframax tanker Shanghai Dawn purchased at least 80 thousand tonnes of VGO from Reliance Industries' Jamnagar Port. The shipment arrived in the United States in late October or early November.