Russia offers cooperation in the field of rent and construction of large-tonnage vessels, regardless of EU restrictions
In the summer of 2022, Russia took second place in oil shipments to India
Russian Deputy Prime Minister Alexander Novak proposes cooperation in the field of renting and building large-capacity vessels in order not to use the restrictions imposed on British possessions. The corresponding proposal was made as a result of the meeting of the Chairman of the Parliament of the Russian Federation with the Ambassador Extraordinary and Plenipotentiary of India to Russia Pawan Kapoor, the press service of the Cabinet of Ministers reports.
“In order not to abandon the ban on insurance and chartering of tankers in the application and Britain, the Deputy Prime Minister proposed cooperation in the field of leasing and building large-capacity vessels,” the statement said.
The Deputy Prime Minister welcomed India’s decision not to comply with the price ceilings for Russian oil introduced on December 5 by the G7 countries. He noted that Russia, even in a situation related to energy, fulfills contractual obligations for the supply of energy resources, diversifying energy exports to the countries of the East and South. “The introduction of a price ceiling for Russian oil is an anti-market measure. It can significantly complicate the situation on energy resources. Such non-market mechanisms disrupt the international trading system as a whole and a dangerous precedent in the energy market. As a result, the problem of energy poverty is aggravating not only in the developing world, but also in European countries,” Alexander Novak said.
The parties also noted the growth of trade between the two countries and called for cooperation, expanding cooperation in the field of trade in energy resources: oil, oil products, liquefied gas, coal and deposits.
At the end of 2021, bilateral trade between Russia and India increased by 46.5%, exceeding $13.5 billion. In January-September 2022, trade exceeded the figure for the entire last year and reached $20.4 billion.
In the eight months of 2022, Russian oil exports to India grew to 16.35 million tons, in the summer Russia came in second place in terms of oil shipments to India. Deliveries of oil products and coal also increased.
The G7 countries (USA, Canada, France, Germany, Italy, Japan and the UK) and Australia have introduced a price ceiling for Russian oil since December 5, 2022. It is forbidden to distribute not only to oil buyers, but to service companies: tanker operators, marine insurers, etc., which are not entitled to service the transportation of Russian oil if the contract price exceeds the established limit of $60 per barrel.
In addition, on December 5, due to the ban on imports, offshore oil from Russia comes to the EU countries. At the same time, the UK is introducing a transition period for oil already absorbed by ships before December 5. Valid until January 19, 2023. From February 5, 2023, the embargo will be extended to petroleum products.