Russian Oil Affairs Growing in Arab and Asian Countries thanks to Western Sanctions
by Carlo Domenico Cristofori
“Most European nations, such as Germany and France, do not need Ukraine. They need Russia to return to the world economy. They need Russian gas and oil,” the veteran politician and Polish MEP Witold Jan Waszczykowski told UNIAN on Thursday.
OPEC shuts out Western journalists for second time in weeks
Meanwhile, the Organization of Petroleum Exporting Countries (OPEC) has canceled invitations to Reuters, Bloomberg, and the Wall Street Journal to cover its upcoming meeting in Austria, the news organizations reported as Russia Today wrote.
OPEC members will meet for an international seminar at the Hofburg palace in Vienna on July 5-6, with the head of British Petroleum (BP) and the EU’s top energy official also expected to attend.
The countries are expected to discuss joint actions in the wake of the global energy crisis and the Western sanctions on Russian oil exports.
The move marks the second time OPEC has snubbed reporters from the same three news agencies in recent weeks, having disinvited them from an event in Vienna in June.
Asked about the decision at the time, OPEC Secretary General Haitham al-Ghais defended the organization’s policy of inviting media outlets on an individual basis. “This is our house and this is the way we decide to conduct our media strategy,”he said.
Russia to Cut Oil Production in Response to Western Sanctions. Prices suddenly Jump
This choice reflects the consideration of the oil countries towards the West which, in order to hit Russia with the sanctions connected to the war in Ukraine, has caused an alteration of the crude oil market even if Moscow is continuing to grow in commercial affairs with the Arab and Asian countries.
Despite so the ruble has been under pressure in recent weeks due to lower oil prices and Western sanctions, which limit foreign investment and the currency supply from exporters.
The Russian ruble fell nearly 2% against the US dollar on the Moscow Exchange during trade on Friday, reaching its lowest point since late March 2022.
The Russian currency has been losing ground throughout the week, above all, since the short-lived rebellion by the Wagner private military company.
Russian state oil giant Rosneft posted a sharp drop in its annual profit on March 2023 in the wake of Western sanctions against the country.
The company announced a net profit of 813 billion rubles ($10.5 billion) for last year, down 7.9% from 2021.
Western powers have imposed a raft of sanctions against Russia over the conflict in Ukraine, including a price cap on its crude at the end of 2022.
Despite this Rosneft is strengthening its alliances around the world and so creating an important growth perspective in the future.
Qatar’s ex Energy Minister to head Rosneft Board
Rosneft shareholders approved the new composition of the Board of Directors totaling eleven persons at the annual general meeting, the Russian oil major said on Friday.
Mohammed Bin Saleh Al-Sada, the Chairman of the Board of Trustees of the Doha University of Science and Technology and the ex-Energy Minister of Qatar, became the Chairman of Rosneft Board of Directors. “He has 40 years of experience in the energy sector and is currently the Chairman of the Board of Trustees of the Doha University of Science and Technology,” Rosneft said.
Board Members also include Gazprombank CEO Andrey Akimov, President and CEO of Oil & Petroleum International Resources Ltd Pedro Aquino Jr., Representative of Qatar Investment Authority Faisal Alsuwaidi, Representative of Qatar Investment Authority Hamad Rashid Al-Mohannadi, Rector of the Gubkin State University of Oil and Gas Victor Martynov, Academician of the Russian Academy of Sciences Alexander Nekipelov, Deputy Prime Minister of Russia Alexander Novak, Aide to the President of the Russian Federation Maxim Oreshkin , Managing Director of Value Prolific Consulting Services Pvt. Ltd. Govind Kottis Satish, and Rosneft CEO Igor Sechin.
Shareholders also approved the annual report and accounting statements and decided to elect the internal audit committee of five persons, the company said.
Originally published by TASS – Russian News Agency
Russia and India set new record in oil trade
Exports of Russian oil to India reached a new record in May, Bloomberg reported on Wednesday citing ship tracking data.
Moscow accounted for 46% of India’s total oil imports last month, a “staggering leap” from the less than 2% mark imported prior to Western restrictions on purchases of Russian crude, data from analytics firm Kpler showed.
Shipments from India’s traditional Middle Eastern suppliers lagged behind Moscow as New Delhi snapped up Russian oil at hefty discounts, following a $60-per-barrel price cap imposed by Western nations.
In April, the average cost of Russian crude delivered to India totaled $68.21 a barrel, while Saudi oil stood at $86.96, the outlet said.
OPEC Oil Production Cut Reopens U.S. Rift with Saudi Leader. The Soufan Center Warning
“Granted, China too has taken far more Russian crude over the past year, with imports hitting records, but it is India, a strategic US partner, that has stepped in from the wings to prop up the Russian economy,” Bloomberg noted.
However, the outlet pointed out that not all Indian refineries were ready to boost Russian oil supplies as these plants were not designed to process heavier blends of crude.
“The BPCL refinery in Mumbai, for example, doesn’t have a coker — a unit that allows the processing of heavier, sulfurous crude like Russia’s — so about a tenth of the crude processed is Russian,” an executive at one refinery told the outlet. This is lower than at some of India’s newer plants, where the figure is as high as 40%.
While refinery configuration remains a limiting factor, “right pricing” of oil and capital investment inflows to upgrade the infrastructure could change the situation within three or four years, the outlet said.
“Indian refiners took the far, far high end and beyond of what we thought would be possible,” said Jamal Qureshi, Managing Director for Strategy and Analysis at Petro-Logistics. “They quickly replaced Urals lookalike grades, which we expected, but they’ve also backed out of other grades beyond that.”
In March, Russia’s largest oil producer, Rosneft, signed an agreement with Indian Oil Corp, the country’s top refiner, to substantially increase oil supplies and diversify oil grades delivered to the country.
Moscow and New Delhi also agreed to use the Asia-focused Dubai oil price benchmark in their latest deal, abandoning the Europe-focused Brent benchmark as Moscow shifts oil sales towards Asia.
Originally published by Russia Today
Swiss-based firms keep Russian fuel flowing
Two of the world’s major energy traders, Vitol and Gunvor, remain significant buyers of refined oil from Russia despite their pledge to reduce business with the sanctions-hit country, the Financial Times reported on Tuesday.
The outlet has analyzed export records filed with Russian customs in the first four months of 2023, which reportedly show that both companies were among the top ten buyers of Russian refined oil products, such as petrol and diesel.
Switzerland-headquartered Gunvor was reportedly the eighth-largest buyer by value, shipping a million tons of petroleum products worth about $540 million. Vitol, whose top executives are also mainly based in London and Geneva, was the tenth-largest buyer, shipping around 600,000 tons worth about $400 million, the FT reported.
In total, 50 companies exported a combined $16 billion worth of refined petroleum from Russia over the first four months of this year, according to data reviewed by the outlet.
Trading in Russian refined fuels is not prohibited under Western sanctions as long as traders comply with restrictions. In December 2022, the EU, G7 nations, and their allies introduced a collective ban on Russian seaborne oil exports, along with a price cap of $60 per barrel. Another embargo banning almost all imports of refined Russian oil, as well as introducing price caps on diesel and other petroleum products, came into force on February 5.
Both Vitol and Gunvor stated they had stopped trading in Russian oil but confirmed they were regular buyers of refined fuels from the sanctioned country, disputing the accuracy of the data in possession of the FT.
Gunvor insisted that according to its own records the company had purchased just over 700,000 tons during the stated period, with a value of about $330 million. Vitol also argued that the customs declarations did not match its internal figures but declined to provide its own data. The company explained that Russian customs records were sometimes filed after cargoes leave the country, meaning Vitol shipments from December, for example, may have been recorded for January.
The Swiss-based firms stressed that their exports of refined Russian petroleum products comply with regulations.
According to the FT, the other eight biggest buyers are a “mixture of Russian-controlled traders and recently established entities in the United Arab Emirates, Hong Kong or Singapore.”
Original published by Russia Today
