India pointed as Russia sneaks oil export into US
The US has raised concerns that India hid the origin of Russian oil shipped to New York, a top Indian central banker said.
Speaking at a recent event in Bhubaneswar, India, Michael Patra, the deputy governor heading monetary policy at the Reserve Bank of India said the country was informed of the case by the US Treasury Department.
The department told India that an Indian vessel met a Russian tanker at sea to pick up oil. The shipment was then transported to a port in Gujarat on the west coast of India, where it was processed into a product used to manufacture single-use plastic, Patra said.
“The refined output was put back on that ship and it set sail without a destination. In the mid-sea it received a destination so it recharted its course, going to New York,” he said.
The US has banned imports of Russian energy products in response for the invasion of Ukraine.
Obscuring the origin of Russian oil has been be a topic of discussion lately, as reports suggest traders are blending crude and refining it elsewhere before it reaches the US market. Oil supplies believed to be partially composed of Russian oil arrived in New York and New Jersey in April too, the Wall Street Journal reported.
Concerns are also heating up that the same could be happening in Europe, with India being used as a back door for Russia crude.
India and China have not publically criticized Russia for its war in Ukraine, nor have they enforced any sanctions, unlike much of the Western world. To that effect, the two countries have been enthusiastic buyers of Russian oil for its cheap prices, contributing to Russia’s stunning revenues from its oil and gas sales this year.
Thanks to oil prices at multi-year highs, Russia bagged $24 billion in just three months from its energy sales to India and China and is on track to earn $285 billion in revenue this year, overtaking last year’s takings by 20%.
