The United States, Europe and other countries have imposed sweeping sanctions on Moscow. In an effort to hurt Russia but keep global supplies steady, the West also imposed a cap on the price Russia could charge for its oil.
This cheaper oil has found new markets — including India, which now purchases nearly two million barrels a day, roughly 45 percent of its imports, according to the International Energy Agency.
In addition to stoking India’s economy, cheap Russian oil has given India a lucrative business refining that crude and exporting the products to other regions that suddenly need fresh energy supplies. That includes the European Union, which has banned direct oil purchases from Russia.
China and India are buying so much Russian oil now that Moscow is selling more crude than it was before it invaded Ukraine.
Moscow had successfully circumvented the effects of Western sanctions amid its invasion of Ukraine by rerouting supplies primarily to the two Asian giants.
Russian oil and gas export revenues would total almost 9 trillion rubles (roughly $98 billion) for the year, a level similar to 2021, the last year before the invasion of Ukraine and subsequent sanctions.
India bought Russian oil at $84.2/bbl in October, highest since December
India paid the highest prices for Russian oil in October since the price cap was imposed, providing a boost to Moscow’s revenues despite efforts by western nations to curb the producer’s income and funding for the Ukraine war.
The price of a barrel of oil from Iraq and Saudi Arabia in October averaged $85.97 and $98.77, respectively, the data showed.