India has late been accused of doing large business in the Ukrainian War. This is, of course, a simplification. India is indeed making an excellent profit from the sanctions imposed by the West against Russia. Just learn from them.
India is simply a global giant, with the largest population (it has just overtaken China). However, it is simply a very mediocre country, even if compared to its powerful neighbour, which has brought hundreds of millions of its citizens out of poorness through economical development. This is why India needs energy, energy and energy one more time to make up for these age-delays. This human, which gives momentum to activities, as well as the chemical, which has been obtained for hundreds of years from the burning of coal and its compounds. It replaces the work of human hands, it becomes a servant, even a slave, working for the well-being of man. Otherwise, this billion and 400 million will stay in destitution, surrounded by oases of unbelievable wealth of elites.
For development, access to energy sources is crucial for India. This is why they are not convinced that, in the name of "save the planet" or "punish Russia" on the another hand, they will not be able to safe their supply of oil, coal, gas or atomic energy. It is simply a country that takes the "strategic autonomy" seriously (as opposed to the EU). In doing their business, they search the benefits of cooperation with Washington (as late shared fighters, although the main supplier of arms is... Russia) and Moscow (importation of oil, fuels, construction of atomic power plants).
India is the 3rd largest global oil consumer. It does not have large deposits, so it must import 85% of this essential natural material (a small little than Poland). Therefore, refineries are looking very intensively for the cheapest supplies. And they besides do it during geopolitical turmoil, due to the fact that this is the perfect time for good business. They do not pay attention to public instruction or backroom blackmail of allies. But then they don't gotta cry out to the media like the president of Orlen, who, after breaking his contract with Russian Tatnieft, cried worldwide in the Financial Times that “the failure of Russian oil costs Orlen $27 million a day, as the Urals differential is $30/b, and Orlen must buy more costly oil species.” And according to him, "this is the marketplace cost that any company, not importing oil from Russia, bears". Indian refiners clearly specify "market", due to the fact that on specified occasions they make large money.
Since the outbreak of the Ukrainian War, Russian oil and fuel imports have grown from period to month, beating further records. Russia became the largest supplier (a year earlier was the 10th), reaching over 2 million barrels a day in May (3 times more than consumption in Poland). Previously India had bought a mediocre percent of oil from Russia to scope 40% in the summertime of ’23.
Indian refineries, of course, make an excellent profit on this business, Russian oil usually buying $10 cheaper, which is about 15% of the price. erstwhile Iraqi cost $90/b, Saudi – $100, 83 dollars were paid for Russian. On an average tanker, Indian refineries have a profit of $10 million, with Russian oil ships arriving tens of a month. The business is great, it is estimated that the economy over the course of 2022 gained by importing inexpensive Russian oil $3.6 billion.
As a result, India began to export more oil products, became the largest fuel supplier to Europe. They replaced Russia's exile. The paradox is that Indian products are made from Russian oil. India was perfectly suited to this role, as on the 1 hand, it is the 3rd global importer of oil and, on the another hand, the 4th largest exporter of oil products. Oil is the largest import cost and products is the largest export income. The Indian economy felt it well in the fast improvement of the trade balance.
Of course, America, as well as Europe, were not satisfied that India was buying Russian oil. But they did not comply with the pressure, they did not limit their purchases. The oil minister, Hardeep Singh Puri, expressed this very clearly: “India is simply a sovereign state and implements its right to supply oil where prices are most favourable.”
Only envy specified knowing and practicing sovereignty.
Andrzej Szczęsniak
photo public domain
Think Poland, No. 37-38 (10-17.09.2023)
