U.S. Senator Rubio proposes sanctions over China’s purchase of Russian oil
US senators from the Republican Party have called for sanctions against insurers of tankers carrying fuel from Russia to China. About it informs Bloomberg.
The initiative was sponsored by Marco Rubio, Rick Scott and Kevin Kramer. According to the bill, any organization that facilitates deals for the supply of Russian oil or liquefied gas to China should face “serious consequences.” At the same time, it is assumed that these measures may also affect Chinese state-owned companies.
According to Rubio, by buying Russian energy resources, Beijing supports Russia’s actions in Ukraine.
In May, European Commissioner for the Internal Market Thierry Breton disclosed Russia’s daily profit from the sale of energy resources abroad. According to him, the export of oil and gas brings Moscow 800 million euros a day.
Earlier it was reported that the size of the discount for China on Russian ESPO oil compared to similar grades from other suppliers is 10-12 dollars per barrel. The Russian variety sells for about 10 percent less than the Brazilian Lula and Sapinhoa, including shipping costs.
China’s competitor for cheap Russian oil
Bloomberg notes that this year the import of Russian oil to China has grown sharply. At the same time, the cessation of Russian fuel supplies to China could potentially lead to higher prices, as Beijing will be forced to compete more fiercely with other large buyers for oil.
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In particular, India has already increased its purchases of ESPO grade crude oil from the Far East, which is usually preferred by Chinese refineries. Four ships carrying ESPO are heading to India and two tankers are heading to the port of Paradeep. There, according to the publication, there is an oil refinery operated by Indian Oil Corp. Thus, China faced unexpected competition. Previously, India was not very interested in the Russian Far Eastern variety due to the large distance from the Russian loading port of Kozmino.
The fight of the West with Russian oil
Earlier in Europe, it was already proposed to hit Russia’s income from energy exports. For example, Polish Prime Minister Mateusz Morawiecki spoke about a way to force European buyers to abandon Russian oil. According to his proposal, European countries that continue to buy Russian oil will have to pay a countervailing duty. In this case, none of the countries of the union will have an advantage over other EU members. Then the process of switching to new suppliers will not slow down, and Russia’s oil revenues will be significantly reduced, Morawiecki believes.
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In turn, US Treasury Secretary Janet Yellen said that Washington has been working with allies in recent weeks to limit the price of Russian oil. According to her, the United States is trying to reduce the income received by Russia. “So when will the next round of EU sanctions [в отношении российской нефти] in December, we are concerned that a significant amount of oil will remain with Russia, which will lead to a jump in prices for it,” she said.
The West believes that one of the most likely levers of influence is the setting of upper limits for Russian oil prices. In turn, Russian Deputy Prime Minister Alexander Novak warned that Russia would not supply oil to world markets if, if the G7 countries introduced a price ceiling, its final cost would be lower than production costs.
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