India defends itself against criticism for buying Russian oil, arguing that ensuring energy safety is the highest work towards citizens. Indian MFA spokesperson Randhir Jaiswal stressed that the country respects legal obligations, but should not be double standards in the energy trade. This is an allusion to the practices of European countries purchasing Russian oil derivatives refined in 3rd countries. The fresh EU sanctions lower the Russian natural material price limit, which could be beneficial for India.
Jaiswal stated that India is simply a liable partner, full respecting its legal obligations. However, he added that there should be no double standards, especially erstwhile it comes to energy trade.
As the Hindustan Times explains, it was an allusion to the practices of European countries purchasing Russian oil derivatives refined in 3rd countries.
The largest refinery in India
The Russian-Indian Vadinar refinery, in which Rosnieft has 49.13 percent stake, is 1 of the largest in India. Its yearly production capacity is 20 million tonnes and its regular capacity is 405,000 barrels of oil.
It is besides 1 of the most modern specified objects in the world. However, the Indian economical diary "Economic Times" points out that India will benefit from EU sanctions lowering the Russian natural material price limit.
Second largest buyer of Russian oil
At present, nearly 40% of the oil imported by India comes from Russia. India is the world's second most crucial buyer of Russian natural material.
EU ministers adopted a further package of sanctions on Russia earlier on Friday. It provides for restrictions on subsequent ships from the Russian alleged shadow fleet, their shipowners and restrictions on Russian banks' access to finance.
New oil price limit
The sanctions supply for a full ban on the operation of Nord Stream pipelines and lower the price ceiling for Russian oil. The price limit for natural material exported to 3rd countries will be set at 15% below marketplace value over the last 3 months.
The current ceiling, set in 2022, is $60 per barrel and is above the marketplace price. After the reduction, it will be around $47,48 per barrel.
Russia's gross simplification mechanism
Although Western sanctions do not prohibit Russian oil from buying another countries specified as India or China. However, they introduce the rule that companies from the EU, the USA, the G7 and their allies cannot supply transport services, insurance services, brokering Russian oil transport, if it is sold at a price above the set limit.
The price cap is simply a sanction mechanics introduced by G7, EU and Australia in December 2022 to reduce Russia's income from oil exports. With these revenues, Russia can proceed its invasion of Ukraine.
(PAP) Note: This article was edited with Artificial Intelligence.
