In April, India and China bought Russian oil at a higher price than the “price ceiling” – mass media

India and China bought the vast majority of Russian oil in April at prices exceeding the G7 “price ceiling” of $60 per barrel.

It is reported Reuters with reference to traders’ data and own calculations.

This means that Russia receives more income from oil despite the West’s attempt to limit the financing of the aggressor in the war against Ukraine.

According to a Reuters source in the G7, the Western price limit will remain unchanged for the time being, despite pressure from some EU countries, such as Poland, which are demanding a lower limit to increase pressure on the Russian Federation.

The latest data from Refinitiv Eikon suggests that Russian cargoes of Urals oil loaded in the first half of April are mainly bound for ports in India and China.

India accounts for more than 70% of seaborne shipments of this variety this month, while China accounts for about 20%.

Meanwhile, lower freight rates and lower Urals discounts to global benchmarks pushed the daily price of the grade back above the ceiling in early April after a period of trading lower.

India and China have not agreed to a “price ceiling,” but the West hoped the threat of sanctions would deter traders from helping those countries buy oil above the ceiling.

According to traders, average discounts for Urals oil were $13 per barrel on DES basis (Delivery from Vessel) in Indian ports and $9 per barrel on ICE Brent basis in Chinese ports, while transportation costs were $10.5 per barrel. and $14 per barrel, respectively, for deliveries from Baltic ports to India and China.

So, the price of Urals on FOB terms in the Baltic ports, taking into account additional transport costs of about 2 dollars per barrel, in April was slightly higher than 60 dollars per barrel, according to Reuters calculations.

Shipping costs have fallen significantly in recent weeks thanks to milder weather and more tankers.