Europe buys Russian oil in "unprecedented" volumes, US also uses "loopholes" to diligently hunt for Moscow goods

The Independent newspaper reported that European countries continue to buy Russian oil, but not directly, but through India. The volume of purchases is unprecedented.

Europe increases purchases of Russian oil via India. (Source: Alamy)

Oil imports from India have hit a record high and crude fuel supplies to the country have more than doubled, the newspaper said.

“Consumers in Europe may have received unprecedented volumes of gasoline, diesel, kerosene and other petroleum products from Russia via India,” the newspaper said.

New Delhi can buy oil at low prices, refine it at refineries and sell it at market prices, analyst Matt Smith explains.

The average price of Russia’s main export grade, Urals, fell by $8 month-on-month in December 2023 to $64.23 a barrel, according to the Russian Finance Ministry . The spread over the Brent benchmark widened to $13.65 a barrel.

In 2023, Russia's average oil price is $62.99/barrel, while the figure for 2022 is $76.09/barrel.

* On January 11, RBK news agency cited data from the US foreign trade statistics database saying that the country imported nearly 10,000 barrels of Russian crude oil - worth 749,500 USD, in November 2023.

The US Treasury Department's Office of Foreign Assets Control (OFAC) is still issuing special licenses to allow some oil purchases from Russia despite Washington's strong lead in banning crude imports from Moscow.

The November oil import is believed to be the first US purchase of oil directly from Russia since Washington imposed a ban on crude imports on Moscow.

Previously, Washington continued to buy goods from third countries during the period of imposing an oil import ban from Moscow.

According to a recent report by Global Witness , based on Kpler ship tracking data, in the first three quarters of last year, the US imported 30 million barrels of fuel from Russian refineries.

The purchases were made through what the agency called the “refinery loophole,” which allows oil to enter the United States after being shipped outside Russia and refined.

In addition to the US embargo, Moscow's seaborne oil is also subject to price ceilings by the Group of Seven (G7) and the European Union (EU).

The measure, introduced in late 2022, bans Western companies from providing insurance and other services for Russian crude shipments unless the cargoes are purchased at or below a price limit of $60 a barrel.

The group also placed similar restrictions on Russian refined petroleum products.

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