India and China continue to expand their economic relations with the Russian Federation, playing a key role in supporting Russia’s strategic energy projects despite Western sanctions pressure.
This is reported by Business • Media
India Supports the Russian Energy Sector
On the sanctioned Arctic LNG 2 project, the sixth loading of liquefied natural gas took place last week, marking the first occurrence this year. Currently, the tanker Arctic Vostok is near the floating storage facility Koryak in the Kamchatka region. The owners and operators of this vessel are two Indian companies registered in India. It is worth noting that Arctic Vostok has been under U.S. sanctions since last year; however, this has not prevented it from continuing operations for the transshipment of Russian LNG.
India also does not plan to abandon purchases of Russian oil. The country’s Minister of Oil, Hardeep Singh Puri, emphasized that imports are conducted in accordance with international norms and within the “price cap” established by the G7 countries. According to him, these purchases have helped avoid a sharp spike in oil prices, which could have reached $200 per barrel if Russian oil had disappeared from the global market.
“The import of the resource is carried out in compliance with international norms and the price cap set by the G7 countries. Moreover, these purchases have helped avoid a shock scenario that predicted a rise in global oil prices to $200 per barrel in the event that Russian oil was removed from the global market.”
At the same time, the price of Russian oil for Indian buyers continues to decrease. According to market participants, prices for Urals crude oil for shipments scheduled for late September and October have fallen by $3-4 per barrel compared to Brent quotations.
However, the Indian company Nayara Energy, partially controlled by Russian Rosneft, has faced a reduction in raw material supplies. Following the imposition of EU sanctions in July, state companies from Saudi Arabia and Iraq halted oil supplies to Nayara. As a result, the company is now entirely dependent on Russian raw materials.
China and Russia Advance a Large Gas Project
After prolonged negotiations, the Russian Federation reached an agreement with China on the construction of the “Power of Siberia 2” gas pipeline. Gazprom states that the new pipeline will be able to supply up to 50 billion cubic meters of gas annually over the next thirty years. Moreover, the price of gas for China will be lower than for European consumers. Analysts note that the successful implementation of this project will be a significant diplomatic achievement for Putin and will underscore the strategic cooperation between Russia and China amid the war against Ukraine and the impact of Western sanctions.
Additionally, Gazprom has agreed to increase gas supplies to China through the already operational “Power of Siberia” route by an additional 6 billion cubic meters per year, bringing the total to 44 billion cubic meters.