Loophole Enables Oil Imports
The Centre for Research on Energy and Clean Air has released a data-driven study that reveals a loophole that allows the European Union (EU), the majority of G7 nations, and Australia to obtain oil from Russia indirectly via India and China, despite having banned or restricted imports of Russian crude oil and petroleum products.
Points to Ponder:
- The Centre for Research on Energy and Clean Air has released a data-driven study highlighting a loophole that allows several countries, including the EU, the majority of G7 countries, and Australia, to obtain oil from Russia indirectly via China and India, despite having banned or restricted imports of Russian crude oil and petroleum products.
- According to the research, these countries are expanding their consumption of processed petroleum products from countries that are major importers of Russian crude oil, which may weaken Russia’s sanctions.
- Countries imposing price caps have increased their imports of refined oil products from China, India, Turkey, the United Arab Emirates, and Singapore, dubbed as the “laundromat” countries.
- These “laundromat” countries imported more Russian crude oil than the year before the war, with a 140% increase in Russian crude oil import volumes compared to the year before the invasion.
- Because there are no sanctions against Russian crude oil, the “laundromat” countries are increasing their imports of Russian crude oil, which is available at a lower price.
- These countries refine crude oil purchased from Russia and transfer it to price-control alliance countries.
- According to the research, India was the top exporter of oil products to price cap coalition countries up to the first anniversary of the crude oil price limit, followed by China.
- The EU was the top importer from these “laundromat” countries in the year following the Russian invasion, purchasing 20.1 million tonnes of oil products. Australia purchased 9.1 million tonnes of oil products from these countries, followed by the United States, which imported 8.5 million tonnes.
- The study includes numerous charts that indicate the amount of crude oil imported from Russia by the “laundromat” countries one year after the invasion, as well as their exports of oil products to price-cap coalition countries..