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participate in the Vostok Oil project, Russian Deputy Prime Minister Alexander Novak told reporters, adding that the issue will be discussed at the level of businesses in July. "The issue was discussed at previous meetings. The Russian-Chinese business forum will be held in July. I think that [business] will discuss [such a possibility there] at the level of companies in detail," he said. Vostok Oil is the flagship project of Russia’s Rosneft. It comprises 52 license areas in Arctic Russia with thirteen oil and gas fields therein.
Indian partners are already present in Russia. ONGC Videsh, Oil India, Indian Oil and Bharat Petroleum jointly own 49.9% of Rosneft's East Siberian venture, Vankorneft. Oil India, Indian Oil and Bharat PetroResources hold a combined 29.9% in Rosneft's Taas-Yuryakh Neftegazoboycha Siberian producer.
India purchased almost no Russian oil before the war. Now, it is the second biggest buyer after China (in some months, it is biggest). In April, Indian exports of Russian oil reached a nine-month high of 1.96 million barrels a day, rising to 2.1 million barrels a day in May and 2.13 million in June. Almost 41% of India’s oil imports now come from Russia.
The surge in energy sales explains why trade between Russia and India reached $65bn last year, nearly two times 2022's level. However, the flows are wildly mismatched: India's Russian imports amounted to some $61bn, while exports to Russia were worth only $4bn. Nevertheless, Modi and Putin have set a target of boosting trade turnover to $100 billion by 2030. Energy supplies, including nuclear, could play an important role in that.
Russia’s Novatek is reportedly seeking a “shadow fleet” of LNG tankers to serve the blacklisted Arctic LNG 2 project that has launched the first 6.6mn ton/yr train, but cannot start commercial shipments because of US sanctions and a lack of dedicated tankers. All the same, it is not clear whether Indian buyers are ready to take secondary sanctions risks by dealing with blacklisted projects. And the recent EU transshipment ban on Russian LNG volumes, which will go into force in nine months, potentially raises the cost of Russian LNG delivery. Novak refused to say whether talks on Indian companies replacing Western firms that have withdrawn from Russia are taking place.
Indian refining companies managed to save at least $10.5bn over the last two years by increasing Russian oil purchases, The Indian Express newspaper said, citing official data of the country from April 2022 to May 2024.
188 RUSSIA Country Report August 2024 www.intellinews.com