Page 42 - RusRPTJul22

got 27% of its oil from Russia in May, up from less than 5% before April. Russian imports have mainly replaced arrivals from other sources in India, but the country has also seen an uptick in overall crude intake since the start of April, according to the report.
Most of this oil is re-exported in petroleum product form. This amounts to half of the petroleum products that the Jamnagar refinery produces in total.
CREA stressed it was important to target the shipping of Russian oil to prevent the country simply diverting its oil to other markets.
“As Russian oil is increasingly shipped to more distant markets, more tanker capacity than ever before is needed,” CREA said. “This is a key vulnerability – strong sanctions against tankers transporting Russian crude would significantly limit the scope for this kind of rerouting of Russia’s exports.” In April-May, CREA estimated that 68% of the oil that Russia exported was on board ships owned by EU, UK and Norwegian companies. Greek tankers alone carried 43% of the total. 97% of the tankers were insured in just three countries – the UK, Norway and Sweden.
In its policy recommendations, CREA called for the sanctioning of all involvement in the transporting of Russian hydrocarbons to third parties, and the introduction of tariffs on Russian oil imports when they cannot be phased out immediately.
“Sufficiently high tariffs would encourage buyers not to purchase from Russia whenever possible, and curb the price paid to Russian suppliers on spot markets,” CREA said.
CREA also called for a plan to replace Russian fossil fuels with cleaner energy sources, and extra measurements regarding energy efficiency and energy savings to be implemented.
42 RUSSIA Country Report October 2020 www.intellinews.com