Due to sanctions, India is refusing long-term contracts with Rosneft of the Kremlin oligarch Igor Sechin.
The sanctions noose around Russia continues to tighten. The largest buyer of Russian oil, India, is quickly curtailing cooperation with Moscow in the oil sector.
Writes about this Bloombergciting informed sources.
Due to sanctions, state-owned oil refineries in India no longer want to commit themselves to long-term contractual obligations with the Russian Federation.
Since February, negotiations have been going on between India and Sechin’s Rosneft to purchase about 500 thousand barrels of Russian oil per day, which could account for about a third of India’s total daily imports. However, it was not possible to reach an agreement.
Thus, Bharat Petroleum and Hindustan Petroleum have completely abandoned plans to conclude long-term contracts with the Russian Federation in the next financial year. And the largest oil company on the Indian market, Indian Oil Corp, which is already bound by long-term contracts with Rosneft and Gazprom Neft, has decided to reduce purchase volumes this year, 2024.
At the moment, the Russian Federation still remains the largest supplier of oil to India, but the situation on the market has recently begun to change significantly. Indians are trying to reorient themselves to other suppliers from Africa and the Middle East.
He commented on the situation on his blog in Telegram Russian analyst El Murid (Anatoly Nesmiyan). He noted that long-term contracts are always more profitable for manufacturers, as they allow them to save money. In addition, long-term production planning is simplified due to the stability of supply. However, India has chosen a less profitable option for itself, as Russia’s toxicity is increasing.
“The Indians do not want to take on any obligations due to Russia’s sanctions situation… It won’t be otherwise. Not only is the premium high-yield European market closed, but emerging market markets are now also looking like fifty. Of course, we don’t care about sanctions, but in reality the situation doesn’t look too rosy“, stated the Russian expert.
Earlier, Türkiye closed its key oil terminal to the Russian Federation.
We also wrote that Ukraine “forced” Russia to reduce oil production.
Author: Tatyana Shevchenko
#Putins #oil #failure #India #refuses #contracts #Rosneft
2024-03-06 18:59:18
