Formally did not violate restrictions: what way of cooperation with Russia has India found?

India imports Russian oil/Collage 24 Channel

Since the start of the full-scale invasion, India has increased its imports of Russian oil tenfold. However, such cooperation can play a cruel joke on the economy of the aggressor country.

Oleg Pendzin, an economist and executive director of the Economic Discussion Club, told Channel 24 about this. He noted that Indians pay in rupees, which Russians cannot use because the Central Bank does not give them permission to do so.

Investing in the Indian economy

Recently, information appeared that Berlin had found a way to import Russian oil through India. However, the economist noted thatGermany imports petroleum productsand not oil. The products that Germany buys are Indian petroleum products made from Russian oil. Moreover, 30% of Russian diamonds are processed in India and end up in Europe as Indian.

There is already a huge problem because$35 billion in rupeesconcentrated on the accounts of Russian companies in India. The question is, where to use these rupees if India does not have such a large number of goods in the required quantity.

The Indians offered to invest the proceeds in the development of the Indian economy. Thus, India made an interesting gesheft in relation to Russia, said Pendzin.

There are currently 23 oil refineries operating in India. The total volume of oil refining is about 250 million tons. Russia produces a total of 560 million tons. India increased purchases of Russian oil for its own refineries from 2% to 48%.

How Russia can use the proceeds for oil: watch the video

Formal legality

In September, New Delhi once again confirmed that none of its refineries bought oil from Russia for more than $60. Formally, India did not violate any sanctions restrictions, unlike China.

Even on the Indian market, it is impossible to buy anything and export it to Russia for rupees without the permission of the Central Bank. The only way to use this money is to invest it back into the Indian economy. Of course, the share of Russian property in India will increase, but this certainly will not provide Russia with any additional goods to continue the war in Ukraine. India is not the worst option for Ukraine in terms of its cooperation with Russia, added the executive director of the Economic Discussion Club.

The bulk of Russian oil sales are concentrated on sales to two countries –India and China.< /strong>The third country that purchases Russian oil in large volumes isTurkey.The economist emphasized that the Turks pay in dollars, while India and China pay in their national monetary units.