Page 6 - AsianOil Week 24 2022

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Russian Far East

crude exports to

Asia up

PERFORMANCE SHIPMENTS of Russian crude from the Far East
port of Kozmino have increased by 20% on the
back of continued orders from China and India.
In reports from Russia this week, even as the
European Union agreed to further sanctions
aimed at reducing Russian imports by 90%, sales
to Asia are booming.
In large part this has been put down to con-
tinued Russian discounts, particularly for its
Urals grade of crude.
The result is increased trade at the Sea of
Japan port of Kozmino in eastern Siberia, which
in recent years has been one of Moscow’s most
important sea links to Asia.
The port is located at the terminus of the East-
ern Siberia to Pacific Ocean (ESPO) pipeline. An
increase of around 70,000 barrels per day (bpd)
in shipments along the ESPO is facilitating the
sale of the extra volumes of crude.
Reports indicate that this will be supple-
mented further in the coming days and weeks Russian crude, however.
when another 80,000 bpd starts to makes its way Speaking last week, Amos Hochstein, the
to Kozmino by rail. senior Energy Security Advisor at the US
It is expected that much of this oil will eventu- Department of State (DoS), asked the Indian
ally be destined for ports in Eastern China to the government not to go too far. “Don’t look like
immediate south or through the Malacca Strait you’re taking advantage of the pain that is being
to India. felt in European households and the United
Earlier this month, China’s links to Russia saw States,” he said.
Russian Ambassador to China Andrey Denisov, In what might be taken as a poorly veiled
in addition to Foreign Minister Sergey Lavrov, threat to his counterparts in India, Hochstein
use a South China Morning Post editorial to also said “Look, we don’t have secondary sanc-
Pull quote to go claim that “the Ukraine crisis has pushed Mos- tions that can ban your purchases from Russia.”
In the past few weeks, India has benefited sig-
cow and Beijing closer together”.
in here Pull quote India meanwhile is coming under increasing nificantly from Russian Urals being sold at rates
to go in here Pull pressure from Western countries unhappy at almost $30 lower per barrel than Brent crude.
New Delhi’s lack of support for wider sanctions Since the start of 2022, the price for Brent is up
quote to go in on Russia. almost 60%.
This is a fact not lost on US politicians, with
Responding to criticism of recent purchases
here Pull quote of Russian crude, Indian Foreign Minister Republican Senator for Wisconsin, Ron John-
Subrahmanyam Jaishankar accused the EU of son, saying “Russia is actually in a better posi-
to go in here Pull hypocrisy given the bloc’s continued large-scale tion, revenue-wise ... at this stage in the war than
quote to go in purchases of Russian natural gas. they were at the start of the war.”
Similar statements are being heard from
“We don’t send people to buy Russian oil, we
here. send people to buy oil in the market, buy the best Democrat Senators too, with Chris Murphy
oil,” he said. “Why [is it] only Indian money and from Connecticut claiming India’s actions could
funds coming from India and not gas coming to influence the US’ “willingness to look the other
Europe which funds war? Let’s be even-handed way, as they have more deeply integrated them-
here.” selves with both Russian energy sources and
And despite criticism from the West, India Russian military equipment”.
is not violating any sanctions on Russia, a point Chris Van Hollen, another Democrat Sena-
confirmed by the former White House press sec- tor representing Maryland, added that countries
retary Jen Psaki in April. that were purchasing discounted Russian oil
This did not stop a US envoy earlier in the were “essentially war profiteering”, although he
month asking New Delhi to limit purchases of made no direct reference to India.™

P6 www. NEWSBASE .com Week 24 17•June•2022