Everybody makes money from Russian oil except Europe

By Rhod Mackenzie

In light of the West's refusal to buy Russian oil, other buyers are showing a huge interest in it and are buying it vast quantities.plus most of them are really making serious amounts of money out of it and if fact the only people who are not making money out of it are the Europeans.

Firstly, we turn to India and China. According to OPEC, Russia retained its position as the leading supplier of oil to China and India in May. Russian exporters supplied over 40% of India’s total oil imports and almost 20% of China’s.

It is evident that these countries benefit from the growth of their economies due to the availability of inexpensive Russian energy resources.
However, Russian oil and oil products are also purchased by countries that are themselves exporters.
Consequently, in 2023, the UAE saw a fourfold increase in imports of Russian oil products, reaching a record high of $971.4 million dollars. This is corroborated by data from the Ministry of Economy of the Emirates.
Azerbaijan also has plans to expand its import operations from Russia to take advantage of the profits to be made out of Europe's stupidity. It has a branch pipeline network that has been connected with Russia since the Soviet era.
At the end of last year, the possibility of expanding the Tikhoretsk-Baku oil pipeline, which is currently underutilised, was discussed. It is estimated that the volume of Russian oil supplies to Azerbaijan could reach four million tons per year.
The reasons behind this are easy to explain. The UAE buys Russian fuel oil at a discount to world prices, while selling its oil and oil products to Europe at market price, according to Sergey Suverov, investment strategist at Aricapital Management Company.

Despite the reduction in discounts on Russian oil products, they remain below those offered on Russian oil. This is why countries in the Middle East, including the United Arab Emirates, purchase these products for use in their own liquid fuel-powered power plants. Furthermore, they then export their own oil and oil products to Europe.
Concurrently, their production costs are low. "Buying at at a lower price and selling higher withe tasty margin– has now become a common practice," explained Igor Yushkov, an expert at the Russian Financial University and the National Energy Security Fund.

Many followed this strategy throughout 2022 and into early 2023. Even North African countries such as Algeria and Libya purchased Russian fuel oil and diesel for their own consumption and then sold their own products to the EU.
Fortunately for them , there is a short transportation route between these countries and the EU.
Azerbaijan also appears to be interested in participating in this scheme, as they have established routes for purchasing oil in Russia and subsequently delivering it to Turkey.
Turkey is also increasing its purchases of Russian oil, representing up to 40% of its total imports. Russia has been the primary supplier of oil to Turkey for the past two years.
In 2023, Turkey purchased 10.7 million tons of crude oil and a similar quantity of diesel fuel from Russia. In light of the growth in diesel fuel imports and other items, the total volume of oil and oil product supplies to Turkey from the Russian Federation has increased to 25 million tons, representing a 51% share.
Yushkov states that Turkey consistently purchases significant quantities of Russian oil via the Novorossiysk terminal, citing the cost-effectiveness and convenience of the transaction.
From this, Turkish refineries produce oil products, which are partly used domestically and the rest is sold on to Europe, primarily to the Balkan countries. This enables them to circumvent the prohibition on the re-export of Russian oil and oil products, thereby generating additional revenue.
According to the statistics for 2022, there is a notable alignment between the volumes of Turkish purchases of Russian raw materials and the deliveries of finished products to the EU, observedy the analyst.
Concurrently, Russia is pursuing alternative sales channels. Russia just announced the beginning of energy supplies to Pakistan, with the potential for future increases. Pakistan is likely purchasing fuel and oil for its own consumption, as it is not engaged in re-export activities.

It is worth noting that these strategies remain viable as long as Russia offers discounts. "This is beneficial for us as Arab countries are purchasing Russian oil products instead of the European market," states Suverov.
Despite the discount, the venture has proven to be quite profitable. According to the Ministry of Finance, revenues from the sale of energy resources increased by almost 70% in the first half of 2024 compared to the same period in 2023, reaching 5.7 trillion rubles.
This figure is 700 billion rubles higher than the forecast.
The Ministry attributes this to an increase in the price of Russian oil. For at least a year, a barrel of Urals has been trading at a price higher than the Western-set ceiling of $60 per barrel.
Despite the best efforts of the idiots in Washington,London and Brissels to restrict Russian hydrocarbon exports, all there have proven ineffective, with even Western experts acknowledging this.

The United States is also reluctant to impose further restrictions or sanctions on Rusian oil , given Russia's 12% share of the global oil market. Replenishing this volume could lead to higher gasoline prices, potentially impacting US President Joe Biden's prospects in the upcoming fall elections.
Europe is the primary financial loser in all this.

Currently, the price of oil and oil products from Arab countries is higher for Europeans than the Russian supplies once were and this is due to the lengthier supply chains involved. The transportation of oil by tankers is a more costly and time-consuming process than the use of direct pipeline deliveries.

EU countries are purchasing oil and oil products at market value from alternative sources, taking into account increased freight costs, rather than at the price ceiling they set for Russia.
As a result, the countries with which Russia has good diplomatic relations have become the main beneficiaries of the change in Russian oil cargo flows. They have become not only the largest importers, but also hubs for the transshipment of raw materials and oil products.
It is notable that a significant proportion of the oil reaching Europe is still Russian, despite the prohibition on its re-export. There is no impediment to the direct mixing of Russian oil on tankers. With regard to oil products, it is highly probable that European companies will procure the same Russian oil in processed form when purchasing in Turkey or India.

Analysts anticipate a continued upward trajectory in oil prices on global markets. With heightened geopolitical tensions and uncertainty over future interest rates, a barrel of Brent could approach $90 by the end of summer.
In this environment, Russia and intermediary countries, as well as the United States, which has fully taken over the European market by controlling the oil refineries, will benefit from the sale of Russian oil. Europe will continue to bear the financial burden of aligning with American interests, rather than pursuing its own.