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India shrugs off continued

G7 price cap demands

POLICY INDIA has once again ignored G7 crude oil price either as participants or as observers at the event
cap demands as it continues to stand up to West- in the ancient city of Samarkand.
New Delhi looks to ern efforts to sanction Russia over Moscow’s Throughout much of the last six months, oil
retain its position as the invasion of Ukraine in February. refiners across India had been purchasing in
second-largest buyer of As such, New Delhi looks like it will retain the region of 750,000 barrels per day of Russian
Russian crude. its position as the second-largest buyer of Rus- crude, a huge increase from a year earlier, when
sian crude heading into the final quarter of the only around 20,000 bpd was making its way to
year. the sub-continent from Moscow.
Speaking at a press conference just prior to Speaking of the recent increase in sales to
the Shanghai Cooperation Organization (SCO) India, in large part taking up slack created by a
Summit 2022, India’s Foreign Secretary Vinay dearth of orders from traditional European cus-
Kwatra said “India is not a member of the G7, tomers, Russian ambassador to New Delhi Denis
just for the record. Deeper discounts, market Alipov said last week that “India, being a con-
pricing – look, we have said this several times sumer, (is) looking for the cheapest offers availa-
that when Indian entities go out and try to ble, (and) Russia, being deprived of its traditional
respond to India’s needs of energy security and markets in Europe, is looking for new markets.
procure oil, they essentially procure it from the So this meeting between best available options
market.” and best available offers is driving the trade and
He went on to add a somewhat conciliatory our relationship in the energy sector. It is natural,
statement, seemingly aimed at Western gov- we think, this trend will continue in a structured
ernments, by saying: “(T)hese are not govern- manner.”
ment-to-government purchases...On the price Of late, however, despite India bearing the
cap coalition, what form it takes, what shape it brunt of vociferous long-term US and EU pres-
evolves into is something I think the countries sure on its purchases of Russian crude, New
that have floated that (price cap) idea perhaps Delhi has been leaning more and more towards
can better answer,” in reference to continued Saudi Arabia for imports of crude.
US-EU efforts to exert pressure on nations So much so, that import figures of crude in
around the world into joining anti-Russian August now show the Kingdom to be New Del-
sanctions. hi’s second ranking oil supplier.
Of note, and annoying to Washington and Typically as one of the largest suppliers of
London in particular, is India remaining stead- crude to India in recent years, Saudi Arabia
fast in refusing to condemn Russia's military still fell short of numbers imported from Iraq,
action in Ukraine. according to sources, but had risen to around
Kwatra was speaking to mark the departure of 864,000 bpd of crude exported to India in
Indian Prime Minister Narendra Modi as he left August, an increase of 4.8% on figures posted in
for the SCO Summit being held in Uzbekistan. July.
At the now completed summit it is under- By comparison, Russian crude exports to the
stood member nations discussed energy security world’s third-largest crude consumer dipped by
with Prime Minister Modi, Russian President 2.4% to just under 856,000 bpd; a move being
Vladimir Putin as well as President Xi Jinping of seen as both intentional albeit unannounced,
China, who were all in attendance. and merely coincidental by those on different
No Western democracies were represented sides of the oil cap argument. ™

Week 38 26•September•2022 www. NEWSBASE .com P9