India is playing an increasingly important role in global oil markets, buying more cheap Russian oil and refining it into fuel for Europe and the US. However, the country has not faced significant public backlash as it achieves the West's dual goal of reducing Moscow's energy revenues while preventing a " At a time when Europe tightens sanctions, India will occupy an increasingly central place on the " Bloomberg writes about it..

"

“They know that Indian and Chinese refiners can make big profits by buying Russian oil at a discount and exporting at market prices.. It suits them,” he added..

India shipped about 89,000 barrels of gasoline and diesel to New York last month, according to data from Kpler, the most in almost four years.. The daily flow of low-sulphur diesel fuel to Europe was 172,000 barrels in January, the highest since October 2021.

India's role is expected to grow after new EU sanctions on Russian oil exports come into force. The ban will take massive amounts of diesel off the market and more consumers, especially in Europe, will turn to Asia to fill the supply gap..

This will make cheap Russian oil even more attractive to India, which relies on imports to meet about 85% of its crude oil needs.. National refiners, including state-owned refiners responsible for meeting domestic demand, boosted exports last year to benefit from higher international prices.

“India is a net exporter of petroleum products and a significant portion of this production will go to the West to help ease current tensions.. It is clear that a growing share of the raw materials used for this product comes from Russia,” said Warren Patterson of ING Groep..

Under EU directives, India is likely to operate within the rules. When Russian oil is refined for fuel in a country outside the bloc, such as India, the oil products can be shipped to the EU as they are not considered to be of Russian origin..

The G7 countries are seeking to cut Moscow's revenues as much as possible, but are also interested in keeping Russian oil and oil products in order to avoid a global supply crisis, said Serena Huang, lead Asia analyst at Vortexa Ltd..

A key aspect of the mechanism for limiting the Kremlin's revenues and keeping a certain amount of oil on the market was the imposition of a cap on the price of Russian oil, an action that was initiated by the United States.. India has not publicly stated whether it is complying with this restriction, but sanctions have sent the price of OPEC+ oil below $60 a barrel..

A US National Security Council spokesman said there was a price cap that countries, including India, could use to keep energy markets stable while capping the Kremlin's revenue..

"

[see_also ids\u003d"

Earlier it was reported that Indian refineries began to pay dirhams (the official currency of the UAE - ed.. ) for most of the Russian oil purchased through Dubai traders. India must pay in dollars.

While India does not recognize Western sanctions against Moscow, and purchases of Russian oil cannot violate them in any way, banks and financial institutions are careful about clearing payments so as not to unwittingly fall into violation of many of the measures imposed against Russia after the invasion of Ukraine..