Expert talks about consequences of oil price ceiling from Russia

Analyst Potavin believes that the introduction of a ceiling on oil prices from Russia has provided additional revenue for China and India.


ritmeurasia.org.
The restriction adopted by Western countries on Russian oil has generated additional income for India and China, through which Europe now receives Russian raw materials, Alexander Potavin, an analyst at Finam Group, shared his opinion in an interview with RIA Novosti.

According to the data of international analytical companies, Europe and Great Britain continue to buy Russian oil, but now they do it through intermediaries – China, India and other Asian countries. In particular, blended petroleum products, which are produced in Chinese and Indian refineries and contain Russian crude, are being sent to the West.

“India and China were happy to buy crude oil from Russia in January, refine it at their refineries, leaving added value in the local economy, and then sell it to Europe already without the risk of sanctions. In fact, the price ceiling only creates redistribution of oil and gas volumes without removing them from the market,” the agency quoted the expert as saying.

Potavin specified that Western countries receive Russian oil and gas at low prices even through intermediaries.

“Intermediaries usually do not raise the price of the end consumer, focusing on the introduced price bar, but are forced to lower the price of the commodity supplier,” the analyst explained.

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