While Europe introduces sanctions and suffers from the boiling prices for fuel, India uses the moment and concludes favorable contracts with Russia. Why India went worthy of sanctions and what is the interest of both sides, let's tell later.

India is a third country in the world for energy consumption. In 2021, she was ahead of China at the rate of increasing oil imports. The economy is actively increasing afterseed restrictions. At the same time, 85% of the raw materials used in the country is bought abroad. Compared with February 2021, the supply of "black gold" in India increased by 24%. That is why the Indian market is considered advantageous and may well replace European.

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For a month, various media reports about the active phase of negotiations between the two countries. Bloomberg writes that Indian oil refineries are actively interested in the raw materials of the Urals brand. The price for it fell after the reduction of deliveries to Europe and the United States. Already in May-June, deliveries to the plants of Mangalore Refinery, Bharat Petroleum Corp. and Petrochemicals Ltd.

According to the Kepler agency, even before the beginning of any official statements about the negotiations of the Indian side, local companies began to buy parties sent from Russia to Europe, but not falling towards the recipients due to sanctions.

According to IA Reuters, Indian Oil Corp. (Ioc) already purchased 3 million barrels of Russian fuel, and Hindustan Petroleum Corporation Ltd. (HPCL) - 2 million.

In this case, all messages converge in the main points:

- Procurement occurs with a noticeable discount: $ 20-25 per barrel with respect to dated Brent. Although Urals and so cost $ 10-15 less;

- Transactions are planned to be produced in local currency - rubles and rupees, and the exchange rate will be tied to another (still discussed) international currency. It can progress the dominance of the US omnipresent dollar;

- Deliveries will be carried out on the CIF model (Cost, Insurance and Freight). This means that the seller (RF) will independently pay for the delivery of goods to the port, insurance, loading and freight of the vessel.

By entering into such contracts, India is against the sanctions of the West. But the country's leadership believes that it is now important not to politicize the economy. It is necessary to act in the interests of citizens for whom the increase in energy prices is unacceptable.

Moreover, there are colorful examples. Against the background of the energy crisis, prices for gasoline, gas and coal took off in many countries. People did not endure it. In Italy and Turkey, numerous protests were held. The people demanded a decline in prices and exit countries from NATO. At the same time, in Italy, the police still tried to suppress the protest, and in Turkey, the guardians of the law enforcement remained indifferent. Probably, they agree with the requirements of protesters.

In addition to the immediate purchase of raw materials, India actively invests in the Russian oil sector. The amount of investments has already exceeded $ 15 billion. And this is not the limit. It is possible that such loyal conditions of the transaction are associated with the investment factor. India will not just buy more than 15 million barrels of oil, but also will take an active part in the development of the Russian industry.

And what is the European energy market waiting at this time? If the United States finally force the EU to abandon Russian fuel (whose share in the European balance is 27%), then they will no longer find such a profitable supplier. While Russia has a good chance of finding new buyers as soon as possible. After all, the replacement of consumers from the USA took only a week.

# manufacturing # industry # technology # science and technology # economy # Russia # oil and gas # power engineering