China and India will be forced to change oil suppliers due to sanctions against the aggressor country - Reuters
Kyiv • UNN
Chinese and Indian oil refineries are forced to reorient to oil supplies from the Middle East, Africa, and America. This is due to new US sanctions against russian companies and vessels.
Chinese and Indian oil refineries are beginning to reorient themselves to supplying raw materials from the Middle East, Africa and America. This is reported by Reuters, according to UNN.
Details
This is due to the recent sanctions imposed by the US against russian oil companies and vessels, which have significantly reduced the logistics options available to moscow. The changes have already begun to affect prices and transportation costs, putting additional pressure on the market.
The sanctions affected large russian companies such as Gazprom Neft and Surgutneftegaz, as well as nearly two hundred vessels that delivered russian oil. This step was part of a broader strategy to limit the terrorist country's revenues used to finance the war against Ukraine.
As a result of the restrictions, the trade in russian oil, which had previously been reoriented from Europe to Asia, is under threat. In particular, Chinese and Indian refiners, which were the main consumers of this raw material, may face supply shortages.
According to analysts, about 143 tankers that transported a significant portion of russia's oil exports last year were sanctioned. This means that a significant amount of transportation to China and India, which are key consumers, is now difficult. The shortage of vessels that can carry out transportation will inevitably affect market freight rates, creating additional costs for importers.
Against the backdrop of these changes, russian oil imports to India and China had been growing in previous months, but the new sanctions could reduce refining volumes in these markets.
Recall
Earlier, it was reported that the Biden administration intends to impose sanctions on tankers transporting russian oil at a price exceeding $60 per barrel. The restrictions will also affect those involved in oil trading at prices above the established limit.