Vladimir Putin needs help from China and India on oil

Web Desk

31st May, 2022. 03:30 pm
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President Vladimir Putin may need to rely even more on China and India should the European Union prohibit imports of Russian oil, as there are few other Asian buyers capable of processing the sort of crude Europe generally buys.

EU leaders have agreed to seek a partial ban on Russian crude oil carried by sea, which could cost Putin up to $10 billion in lost export earnings per year.

Though this may ultimately result in more of Russia’s flagship Urals crude — a popular oil brand in Europe — finding a new home, Asian customers will be restricted.

According to dealers, this is due to the grade’s difficulty in being refined in big amounts in countries like Sri Lanka and Indonesia, which lack advanced processing and blending facilities to handle the extremely sulfuric sort of oil.

This might prompt China and India, both of which have refineries capable of processing Urals, to purchase additional barrels.

Traders said Chinese state-owned and private refiners may have a fresh hunger to acquire more from Russia now that Shanghai has been freed from its months-long siege.

However, considering that China and India are already using record amounts of Russian oil, which Europe has avoided since the invasion of Ukraine, there is likely to be a limit to how much they can reasonably buy.

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