In 2022, most Russian Federation energy exports were redirected to the markets of favourable nations, according to Deputy Prime Minister Alexander Novak.
Speaking to Ria Novosti, he said that the shipments have increased, most notably to China. Energy exports to India have increased substantially, he added.
For instance, crude supplies to India have increased by 22 times, said Novak.
According to the Russian Ministry of Energy, “black gold” exports increased by 7.6% to 242.2 million tonnes last year. The oil output rose by 2% to 535.1 million tonnes.
India has already supplanted Europe as Russia’s primary market; the Russian Federation now exports the same quantity of raw materials to India via sea as it did to the EU. (almost 1 million barrels of oil per day). Artem Deev, director of analytical research at AMarkets, told Invest Foresight that the Indian oil market is now the third largest in the world (Europe and China are first and second, respectively).
Russia’s share of India’s energy imports has increased from 0.2% a year ago to over 25% today. Based on the previous year’s results, the expert emphasises that Russia became India’s largest oil supplier.
“Thus, the Indian market for Russian Federation companies has replaced the European one. But there is one caveat: our country sells oil to India at much lower prices (due to the price ceiling, a large discount on the Urals is used) than we used to sell to Europe. As a result, the oil and gas revenues of the Russian budget have halved, and the deficit is increasing, which has to be covered by the National Welfare Fund, reminds Artem Deev. “Russia sells to India the same volumes of oil (by sea) as before to Europe, but the revenue is much lower.”
Russian-Indian trans-Arctic container line
The creation of a Russian-Indian trans-Arctic container line was discussed during Alexei Chekunkov’s working visit to India, the Ministry for the Development of the Far East announced on Tuesday.
The primary focus of the meeting with the Indian Minister of Ports, Shipping, and Waterways, Sarbananda Sonoval, was using the Northern Sea Route (NSR) for dependable and secure cargo transport.
An alternative route for transporting goods from India to Europe has been suggested, but it does not follow either the southern or western routes. Instead, it follows the eastern route, which goes through the Northern Sea Route, and it makes use of the port facilities in both Russia and India. When compared to the expense of shipping a container from Moscow, the cost of shipping a container from Vladivostok to India is one-third less. According to the statement, promising areas of cooperation include:
- Putting in place a Russian–Indian container route that travels across the Arctic.
- The establishment of manufacturing facilities in close proximity to the Northern Sea Route.
- The expansion of the fleet.
Social issues were also discussed during the meeting with Dammu Ravi, India’s Deputy Minister of Foreign Affairs for Economic Affairs. According to the Ministry for the Development of the Far East, India was interested in the proposal to establish Russian-Indian specialised educational programmes and a student campus in the Far East. Medicine, IT, and engineering are the highest priorities.
“In India, we saw a sincere, genuine interest in Russia based on a long history of friendship between our countries. We are ready to continue the dialogue with the Indian side, the main goal of which is to launch specific projects. We will hold a new round of negotiations in April at the Far East Development Corporation in Moscow. East and Arctic,” Chekunkov was quoted as saying by the ministry’s press service.
As a result of the bilateral meeting in India, proposals will be drafted for the development of direct air communication between the two nations to increase the mutual tourist flow, which currently needs to reach its potential.
