"As a result of Western sanctions,
raw material supplies are changing dramatically: Moscow is now Beijing's most
important oil supplier and has multiplied its coal exports to India.
In May, Russia sold more oil to
China than ever before, making it the largest oil supplier in the People's
Republic. China imported nearly 8.42 million tons of crude oil from Russia last
month, Beijing Customs officials said on Monday.
That's almost two million
barrels per day (bpd) and 55 percent more than a year ago and about a quarter
more than in April.
After 19 months, Russia has again
ousted Saudi Arabia from being China's largest oil supplier. Chinese companies
such as the refinery giant Sinopec benefited from sharp price reductions after
western oil companies and trading houses withdrew from the Russian market due
to sanctions.
Saudi Arabia delivered 7.82 million
tons or 1.84 million barrels of oil to China in May, nine percent more oil than
in the previous year. However, that's down about 15 percent from April's 2.17
million bpd. In May, the European Union decided to largely ban imports of
Russian oil. However, this only affects transports with oil tankers by sea,
pipeline oil was excluded from the embargo at the urging of Hungary in
particular. The EU embargo should also take effect with transition periods.
Russians also accept other
currencies
China is not the only beneficiary of
Western sanctions. India is also expanding its raw materials business with
Russia at low prices. The world's second largest country by population has
recently multiplied its coal and oil imports from Russia within a year,
according to internal data from the Indian government. Russian commodity
traders are selling coal to Indian buyers at discounts of up to 30 percent,
several insiders said. The Russian-Indian coal trade should also flourish in
June, shipping data on Refinitiv Eikon show.
Meanwhile, Russia has become India's
second largest oil supplier after Iraq - and has pushed Saudi Arabia into third
place. Because Russian oil is traded on the markets at record discounts
compared to other types due to the drop in demand. Indian refineries, which
previously shied away from the high transport costs for Russian oil, have since
resorted to it. India, which also gets a large part of its arms from Russia, is
trying to maintain a neutral stance.
According to Indian government data,
the value of Indian oil imports from Russia has increased more than 31-fold to
$2.22 billion in a year. A 20-day period up to last Wednesday was compared with
the corresponding period last year. During the same period, the value of
India's imports of coal and related products increased more than six-fold to
$331.17 million.
According to an insider, Indian
customers such as power plant operators and cement manufacturers are happy
about the concessions made by their Russian suppliers, who even waived the
usual payment in dollars.
"Russian merchants are generous with payment
methods and also accept Indian rupee and UAE dirham," said the insider.
"Price discounts are attractive and this trend of higher coal imports from
Russia will continue." Offshoots of Russian coal traders such as Suek AG,
KTK and Carbo One in Dubai, Singapore and elsewhere have offered price
discounts of 25 to 30 percent, several insiders said."
China has long been sending us cheap components for solar-powered energy production, components made burning coal. In this way, our Western products for this purpose did not manage to compete. India, Vietnam, Russia and others are now joining China. With cheap energy, they have for themselves the future of renewable energy production tools. Political postures and cheap politicking remain in the West.
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