Russia-India deal on oil: how energy is reshaping geo-political constituencies

Russian Oil Company Rosneft and Indian Oil Company They have signed an agreement for a “significant increase”. Russia exports oil to India. With the latest agreement, crude oil deliveries from Moscow to New Delhi have increased 22 times in a year. The Indo-Russian move, which follows the deals within a few weeks, is back on the energy front between China and Russia.

with Europe and North America As Russia moves away from oil and gas, it is becoming imperative for the Kremlin to find new markets to generate the revenues it needs to continue its increasingly costly military conflict. For Putin, the easiest way is to turn to allies. So are India and China a gesture of friendship to the Kremlin, a bit to the West? Not exactly. And not only. Indeed, on the one hand there is certainly a preference To add strength to the anti-American project, On the other hand, Beijing, New Delhi and other superpowers are trying to further develop trade relations with Russia. Get cheap energy.

The Tsar and the Dragon

While India has seen a 22-fold increase in its crude oil purchases from Russia, China has also bought more energy from Russia in recent months. A recent meeting in Uzbekistan between Xi Jinping and Putin It demonstrated the two leaders’ commitment to intensify trade relations. As we said, it’s a win-win situation where China gets access to cheap energy when it needs it most and Russia finds alternative markets for Europe. Among other things, both countries have started using their own currencies. Yuan and Ruble, Reduces dependence on the US dollar. According to Wall Street Journal LChina imported about 17% of Russian energy in four months Compared to the same period last year. Imports of LNG from Russia increased by 50%, coal by 6% and electricity by 39% through a transit route. In total, China spent in 2022 $43.68 billion and about $3 billion in savings for Russian energy imports. In fact, Russian crude averages $708 per ton, compared to around $816 per ton in other channels.

Not only the East

Also Saudi Arabia and Iran, driven by lower prices, have strengthened their ties with Russia. l’Saudi Arabia itself imports more than twice the amount of Russian fuel oil In the second quarter of 2022, it allowed to export more crude oil it produces.

That is the truth The reshaping of the world geopolitical map after the outbreak of conflict in Ukraine is increasingly driven by agreements on energy resources.

In the West, however, the challenge is greener

Canada Responds to US Deflation Act A federal budget that provides C$80 billion (US$58 billion) in tax incentives for clean technology Including C$25 billion in clean electricity investment over the next decade. “Our friends and partners around the world — first and foremost, the United States — are investing heavily to build tomorrow’s clean economies and carbon-neutral industries,” he said. Finance Minister Chrystia Freeland He presented the budget in the Canadian Parliament.

Canada clashes with US move to offer up to $369 billion in clean energy incentives “Without swift action, The scale of US incentives could undermine Canada’s ability to attract the investment needed to position Canada as a leader In an emerging and highly competitive global clean economy. If Canada does not keep pace, we will be left behind,” the budget document says.

EU mission in Washington

Still at the forefront of green technologies, Margaret Vestager, Executive Vice-President of the European Commission, meeting senior US officials in Washington and participating in a joint EU-US dialogue on technology competition policy, among other events. Announced by EU Commission President Ursula van der Leyen and US President Joe Biden, On March 10, the dialogue will harmonize EU and US approaches to avoid any disruptions to transatlantic trade caused by their respective incentives.