The U.S. Won’t Sanction India For Buying Russian Oil
The United States will not enforce sanctions on India for its purchases of Russian crude oil despite the price cap that the G7, led by the U.S., imposed on Russian crude and oil derivatives last year. This is what Asia News International reported in a tweet, citing a U.S. Assistant Secretary of State. The U.S. official was commenting on calls from Ukraine to impose sanctions on India for continuing to buy Russian crude. “We’re not looking to sanction India. Our partnership with India is one of our most consequential relationships,” Karen Donfried, Assistant Secretary of State for European and Eurasian Affairs, said. Even so, according to Geoffrey Pyatt, Assistant Secretary for Energy Resources, the purposes of the price cap are being served. “Even though India isn’t a participant in the price cap, it has effectively used its negotiating leverage which it derives from the price cap and the fact that large portions of the global market are no longer accessible to Russia, to drive down the price of Russian crude,” he was quoted as saying by ANI. Following the sanction barrage that the EU and G7 leveled at Russia following its invasion of Ukraine, India and China became the biggest buyers of Russian crude, taking advantage of steep discounts for Russia’s flagship Urals blend. The change in Indian oil imports was particularly marked: while before the sanctions began Russia was a minor supplier of oil to the subcontinent, last year it became one of its biggest suppliers. “Today we feel confident that we’ll be able to use our market to source from wherever we have to, from wherever we get beneficial terms,” India’s energy minister, Hardeep Singh Puri, told CNBC this week. “We didn’t allow the geopolitical turbulence or the pandemic or anything else to come in the way of our ability to supply to our consumer,” he added.
Ghana seeks Indian investment in oil and gas sector to become petroleum hub
Ghana, which is struggling with its worst economic crisis in a generation, is seeking Indian investment in its oil and gas sector, William Owuraku Aidoo, its deputy minister of energy, said on Wednesday. Ghana has asked India to consider exploration of three blocks in the western basin and to build refineries as the African nation aims to construct a petroleum hub, Aidoo said. “There are some opportunities in Ghana specially in the oil and gas front. We have some oil blocks available and we came here hoping to attract Indian investments,” Aidoo told Reuters after a meeting with Indian oil minister Hardeep Singh Puri at India Energy Week. He said Ghana will award exploration licences through direct negotiations if Indian companies are interested. Ghana wants India to consider three blocks in the western basin, he said. Apart from offering exploration opportunities, Ghana is also seeking Indian support to build refineries of about 300,000 barrels per day. “We have space for three of them… we want to make a petroleum hub,” Aidoo said. Separately, he said Ghana’s oil production this year could average 120,000-150,000 bpd.
Reliance, BPCL Among Buyers Using UAE Currency for Russian Oil
Reliance Industries Ltd., Bharat Petroleum Corp Ltd. and Nayara Energy Ltd. are among Indian refiners using United Arab Emirates dirham to pay for some shipments of Russian crude as they navigate Western sanctions. Buyers have shifted some transactions to the currency, according to people with direct knowledge of the matter. Payments vary from cargo to cargo, depending in part on the demands of specific traders, said the people, who requested anonymity as the details are private. Reliance, BPCL and Nayara didn’t immediately respond to requests for comment. The European Union’s recent ban on imports of refined oil products from Russia has positioned India as an increasingly important customer for the shipments. Russia has been India’s top crude supplier since June as cargoes previously bound for Europe have been diverted to Asia — often sold at well below the $60-a-barrel cap The UAE dirham provides both Indian buyers and Russian sellers with a relatively predictable currency — pegged to the dollar — without the greenback’s potential sanctions complications. Even on deals that don’t directly violate US and EU restrictions, some intermediary banks often take additional steps to avoid any risks to other banking relationships abroad. India is the UAE’s second-largest trade partner and officials are working on a mechanism to boost trade in dirhams and rupees. Most oil deals are still being transacted in dollars. India’s oil minister said he was unaware of the use of dirham in oil purchases.