Oil companies in India and China are scrambling to respond after President Donald Trump placed sanctions on Russia’s biggest oil producers, creating immediate shockwaves in two countries that have become Moscow’s largest customers during the Ukraine 0 firms began dropping their orders to meet a November 21 deadline after Trump targeted Rosneft and Lukoil, Russia’s two largest oil companies, people familiar with the matter 1 and China have largely ignored Trump’s previous demands to stop purchasing Russian 2 the latest sanctions appear to be having an effect, at least for 3 experts say this may be temporary as businesses work out new methods to keep buying cheap Russian oil through middlemen and a fleet of ships with hidden 4 real impact of Trump’s sanctions on Russia will likely be determined by what happens in Asia.
Together, India and China buy from 3.5 to 4.5 million barrels of Russian oil every 5 of this is imported from the companies that just got sanctioned, according to analysts as reported by 6 caught between Moscow and Washington India faces a tough 7 country needs cheap energy and has long been friends with 8 it also has growing ties with 9 hopes to improve relations with Trump after he placed 50% tariffs on Indian goods, yet its Russian oil purchases remain a problem. China, which has been a big financial pillar for Russia since the war began, must weigh protecting its major oil companies against its important relationship with Russia and concerns about the war’s impact on Putin’s 10 the Russian invasion of Ukraine, Western nations imposed bans on Russian crude oil, prompting Moscow to redirect its exports toward China and 11 two countries purchased large volumes, millions of barrels per day, at significantly reduced 12 this arrangement benefited Asian buyers, Western powers criticized it as indirectly supporting Russia’s war effort against 13 and India justified their continued purchases by citing their domestic energy 14 recent developments suggest that the sanctions President Trump imposed on Rosneft and Lukoil are beginning to have an 15 to Farwa Aamer, Director of South Asia Initiatives at the Asia Society Policy Institute, these sanctions “will inevitably bring costs to the Russian economy.” Major refiners step back In China, several state-owned oil companies have stopped buying some Russian crude, according to Janiv Shah, a vice president at Rystad Energy who analyzes oil 16 January and September this year, Reliance brought in just over 181 million barrels of Russian oil, based on data from Kpler, which monitors oil 17 Monday, Indian Oil Corporation, India’s largest state-owned oil company, said it will follow all sanctions, the Press Trust of India 18 Seigle, who chairs the energy and geopolitics program at the Centre for Strategic and International Studies, said “India is in a tougher spot” because China’s market is less transparent and its companies worry less about US 19 companies don’t comply, they risk severe financial 20 threatened sanctions could destroy their ability to borrow from US banks if they keep buying directly from Russia.
India’s foreign minister 21 on Monday seemed to criticize Trump’s sanctions, calling the energy trade “increasingly constricted.” Smaller players may fill the gap While major Chinese companies may step back, analysts suggest smaller independent refineries, called “teapots,” might keep buying Russian oil through third-party sellers, though their capacity to take more is limited. China’s foreign ministry said Thursday the country has “consistently opposed unilateral sanctions.” New Delhi hasn’t publicly commented, but the sanctions put two of India’s key interests in direct conflict. India’s economy and energy security now depend on cheap Russian crude from a historical 22 its growing partnership with the US through the Quad security group is equally important to counter China’s expanding presence in the Indian 23 a premium crypto trading community free for 30 days - normally $100/mo.
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