India Fueling the West With Russian Oil
India sent large amounts of fuel to the United States and Europe in January, according to data from intelligence firm Kpler. Gasoline and diesel sent to New York from India was at a four-year high, and diesel flow to Europe was the most it has been since October 2021.
The source: India relies on foreign imports for 85 percent of its crude oil.
It’s pretty clear that a growing share of the feedstock used [to send to the West] originates from Russia.
—Warren Patterson, head of commodities strategy at ing Group
India has been importing large volumes of Russian oil in recent months because of discounted prices caused by Western attempts to boycott Russian energy over its war on Ukraine. At the same time, since demand for fuel is so high in European and U.S. markets, India is able to refine the Russian oil and resell it for market prices.
Why is this allowed? According to European Union guidelines, Russian oil refined outside of Russia is no longer considered to be of Russian origin. And since India is buying Russian oil at such low prices, presumably under the $60-per-barrel price cap, the sanctions are still depriving Russia of revenue. All the while, Europe and America are still able to be supplied with fuel.
India’s willingness to buy more Russian crude at a steeper discount is a feature, not a bug, in the plan of Western nations to impose economic pain on [Russian President Vladimir] Putin without imposing it on themselves.
—Jason Bordoff, former adviser in the Obama administration
U.S. treasury officials have two main goals: keep the market well supplied, and deprive Russia of oil revenue. They are aware that Indian and Chinese refiners can earn bigger margins by buying discounted Russian crude and exporting products at market prices. They’re fine with that.
—Ben Cahill, senior fellow at the Center for Strategic and International Studies
Prophecy says: India strives to hold a neutral stance between the West and Russia. As long as it benefits from trade with the West, India will continue its tightrope walk between the two. However, prophecy reveals that India will soon fully shift its allegiance to be completely under Russia’s command. To learn more, read our free booklet Russia and China in Prophecy.
