Treasury Secretary Yellen Says Russia Offers ‘Huge Discount’ on Oil Sold to China and India

Treasury Secretary Yellen Says Russia Offers ‘Huge Discount’ on Oil Sold to China and India

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US Treasury Secretary Janet Yellen. photo = Reuters

U.S. Treasury Secretary Janet Yellen said Russia had offered “a huge discount” to the price of oil it sold to China and India.

According to Reuters on the 22nd (local time), Yellen said that the Russian oil price caps planned by Western countries are affecting Russia.

“Russia has significantly discounted the price of oil it sells to China and India,” Yellen said.

In December last year, Europe halted most of its 3 million barrels of oil per day imports, putting pressure on Russia to find new buyers.

“Europe has been cut off from Russian energy, which has heightened energy supply tensions and is facing a harsh winter,” Yellen said. emphasized.

Currently, China and India are purchasing energy from Russia at a price much lower than the international oil price.

In particular, Russia became China’s largest oil importer for three consecutive months from May to July.

Last month, China imported 8,342,000 tons of crude oil from Russia, up 28 percent from the same month a year earlier. Daily imports were 1.96 million barrels, close to 2 million barrels daily in May.

From January to August, China imported 55.79 million tons of Russian oil, up 7.3% from the same period last year.

India, which seldom purchases Russian oil, has become Russia’s second-largest oil buyer after the conflict in Ukraine due to its low price and increased demand.

Indian companies are known to be importing Russian oil in currencies such as yuan and Hong Kong dollars, rather than dollars, to avoid the risk of Western countries violating sanctions against Russia.

However, oil rate hikes have made Russian oil less attractive to India, and India’s imports of Russian oil have continued to decline after reaching an all-time high in June.

An industry source said, “Indian refiners will not purchase Russian ESPO oil this month due to the increase in crude oil rates.”

“Indian refiners plan to purchase oil from Africa or the Middle East,” he added.

According to data from Refinitiv, from the beginning of this month to the 22nd of this month, Russia shipped about 2 million tons (about 14.35 million barrels) of oil to India. Last month, shipments of Russian oil to India amounted to 3.55 million tons, of which 585,090 tons of ESPO oil were reported.

Yang Ji-hye, reporter for Global Economics [email protected]

The article is in Korean

Tags: Treasury Secretary Yellen Russia Offers Huge Discount Oil Sold China India

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