Russia, as an oil seller, no longer dictates conditions to its buyers, now everything is happening just right on the contrary.
Due to sanctions, the sale of Russian oil to countries around the world has dropped significantly. The largest buyers of petroleum products from the aggressor country are India and China. However, Russia is forced to play by their rules.
Oil and gas expert Mikhail Krutykhin told Channel 24 in more detail about Russia's problems in the market
How China and India set their own rules of the game
The main buyers of Russian oil are India and China. However, even with these countries, not everything is so simple – they actually dictate their terms to Russia. For example, in India, as of September 1, they officially announced that they would not focus on Russian oil, because they need oil from other countries.
Including because one type of oil this is virtually nothing for the oil refining industry. India receives 42 types of oil.
For Russia, payment in Indian rupees is also a problem, because saving this currency is simply not profitable. Therefore, over the past two months, India has been reducing purchases of Russian oil, increasing purchases from the Persian Gulf countries.
“But China has nowhere else to dictate its terms, because everything has long been dictated to Russia by Russia. The bulk of the oil that flows from Russia to China does not travel by sea, but through the ESPO (Eastern Siberia – Pacific Ocean) oil pipeline. The share of oil that China receives comes at special prices,” noted Mikhail Krutykhin.
In addition, a certain amount of Russian oil will be used to pay off debt by 2029, because previously China had a significant the amount of Rosneft. What is also interesting is that Beijing refused to pay the full amount for oil transportation. Negotiations on this matter lasted a long time, but China remained unshakable.
In fact, Russia dropped the price of petroleum products simply because China refused to pay more.
It was previously reportedthat Russia continues to sell its oil and gas on the foreign market. But it suffers from a decrease in income, because in order for these countries to buy Russian oil, the Russian Federation provides them with huge discounts.
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