Aletho News


Russia Will Keep Up The Pace Of Oil Exports To India Despite Increased Chinese Demand

By Andrew Korybko | March 1, 2023

Bloomberg’s points in support of this observation are purely economic and overlook the strategic dimension of Russia’s discounted oil exports to India, which will be explained in the present piece.

Bloomberg published a piece on Tuesday about how “Russia Seen Favoring India Even as China’s Oil Demand Rebounds”, which cites lead crude analyst Viktor Katona from commodity-data firm Kpler. According to him, “While China could ‘buy literally the entire Russian oil exports’ as it abandons Covid-zero policies, Russia will want to keep the Indian market because it is more lucrative and gives its crude sellers greater control.”

Katona is also quoted as adding that “Chinese refiners may want to buy more Russian crude this year, but they also have the capacity to do their own shipping. That would deprive Moscow of income from the ‘parallel gray fleet’ of tankers it has established to deliver crude to India.” While these are all valid points in support of his prediction, they’re purely economic and overlook the strategic dimension of Russia’s discounted oil exports to India, which will now be explained.

First, India’s unprecedentd scaling of Russian oil imports over the past year since the start of the latter’s special operation preemptively averted Moscow’s potentially disproportionate dependence on China and continues to do so into the present.

Second, the Kremlin will never forget the aforementioned strategic favor that India did for Russia at its most sensitive moment in decades, hence why it’s inclined to keep up the pace of its discounted exports to that country as a way of thanking it for this.

Third, the Kremlin is cognizant of the fact that there must be tangible benefits for India in continuing to defy Western pressure upon it to dump Russia, so keeping up the pace of oil exports to it incentivizes India to continue its pragmatic policy of principled neutrality towards the Ukrainian Conflict.

Fourth, their newfound energy relations also served Russia’s grand strategic goal of accelerating India’s rise as a globally significant Great Power.

That last-mentioned outcome advances the global systemic transition’s ongoing evolution towards tripolarity ahead of its final form of more complex multipolarity (“multiplexity”), which serves both of their interests. And finally, the larger dynamics connected to the aforesaid development is that it helps break the Sino-American bi-multipolar superpower duopoly that previously characterized International Relations, thus greatly enhancing Russia and India’s strategic autonomy in the New Cold War.

Altogether, these strategic motivations ensure that Russia won’t increase oil exports to China at the expense of the level at which it’s presently supplying India. Observers should always keep them in mind since they prove that the Russian-Indian Strategic Partnership is premised on their shared goal of accelerating the global systemic transition and not on deriving opportunistic economic benefits like Bloomberg implied is supposedly the case when it comes to their current energy ties.

March 1, 2023 - Posted by | Economics | , ,

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