Preliminary
Russia is encircled by the United States and European countries, and its economic development is limited.As a result, India, under tariff pressure, has come to Putin to buy oil and care business.
But nobody thought that Russia, as the seller, in turn demanded India, stressing that India's transactions should be paid in yuan, other currencies are not accepted.
Russia's attitude is so tough, Modi's government hasn't said a "no" word, the oil company is kind to use the yuan to pay for oil money. India has finally given up the struggle, no longer attached to pleasing the United States, behind the reason you can't think of.
Russian oil is too cheap for India to resist the temptation
For India, buying Russian oil is equivalent to raising money on the ground, the temptation is too big to refuse.
In February 2022, the “Russian conflict” broke out.The United States and the European Union stood up for Ukraine, but its ally India did not support the United States, but continued to seek Russian oil purchases.
Russia may have been prepared to sign a contract with an Indian company by the end of 2021. It will sell 2 million tons of Ural crude oil in one year and ship goods destined for the European market to India.
According to the Russian domestic reports at the time, Russia gave India a 30% discount, which has been fairly discounted, while India also hopes to buy more orders in exchange for a 40% discount.
At that time, Western media used more ironic terms for this transaction: "buy Russian crude oil at low prices." India retorted, saying that this was a normal deal and that no political label should be added.
But in the eyes of the United States, buying Russian oil is no different from sending Russian military expenses, and the Biden administration hit India in 2022 to stop increasing sales to Russia.
The Trump administration was even harsher, directly increasing India's tariffs to 50%, as a punishment for India's purchase of Russian oil.
It would be too one-sided to say that Modi is "heroic" and strives to be the "pioneer" in resisting American hegemony. In the final analysis, the "interest issue" is still not understood.
In these years, during the special period of Russia, most European countries were reluctant to order oil, breaking Russia’s stable financial resources.But war per minute was also a price spending, and naturally a “price jump” for selling energy.
And after India bought back at low prices, it can not only fill domestic production needs, save oil spending; it can also be sold directly to other countries, earning profits by earning differential prices.
What's even better is that the oil bought at a low price is processed and reprocessed by the factory, and then exported after the added value is increased, which is another profit.
It can be said that India and Russia's transactions have filled India's profits with a lot of companies and individuals making profits through oil, which is more cost-effective than trade with the United States, even if Russia demands to settle in yuan, Modi will not silently object.
“Anti-Russian” wave becomes small, everyone admits to seeking Putin to buy oil
Some people say that India is a "lonely brave man" and that even European countries have to go far and far away from Russia to buy oil. Modi dared to offend Trump and even signed a long-term contract. However, this is not the case. India is not the only one buying Russian oil.
China has always maintained trade cooperation with Russia and has not been influenced by US policies. In September this year, China, Mongolia and Russia also signed an agreement to build a natural gas pipeline to facilitate Russia's direct delivery of natural gas to China.
European countries Hungary and Slovakia also sought Russia to buy oil, lodging solemn protests against the EU's pressure, emphasizing that if Russia's energy supply is artificially cut off, their own energy security cannot be guaranteed.
To know that oil and gas are essential sources of energy.If you abandon the supply of Russia, it means that it is an economic burden to go nearby, to the Middle East or elsewhere to find valuable goods instead.
However, the Prime Minister of Slovakia directly made it clear that if the EU does not come up with a practical plan and the "electricity price issue" remains unresolved, then don't blame the country for not cooperating with sanctions on Russia.
Even the Chinese province of Taiwan has publicly admitted that it has actually purchased Russian brain oil, and light has purchased $1.3 billion in products in the first half of the year.
Naphtha can be used in the semiconductor and electronic component industries, which are the economic pillar of Taiwan Province Province. Naphtha imported from Russia accounts for almost half of the raw materials, which is of great significance. Formosa Plastics Company is still buying it until now.
These are all transactions admitted on the surface. It is unknown whether there are countries secretly purchasing them. After all, Russia's energy is cost-effective and stable in supply, and it is indeed a good seller.
Against the background of sanctions, through the voices of these countries and regions, it has also been verified from the side that although the sanctions of the United States are severe, they cannot stand the freedom of trading in the market economy. India just follows the laws and makes choices according to the principle of "maximizing benefits".
Yuan settlement to the world, China-India relations on this turn?
The reason why Russia proposed to settle in RMB this time was also for convenience. At present, only RMB can be directly converted into rubles. India has paid in US dollars and has to exchange it for RMB again. It is better to directly use RMB transactions in one step.
Since the "Russian-Ukrainian conflict" occurred, Russia has been considering removing the dollar from the trading system.In the oil trade, with the participation rate of the RMB significantly increased, and the tariffs improved, the settlement of the RMB was put on the agenda and was also supported by India.
To know, America's "hegemony" is based on the dollar-centered financial system. India's change, also announced will give up the struggle, not stick to the good of the United States, instead of considering its own interests.
But the move of India to settle with the RMB is understood as a positive approach to China, and China-India relations in the future will take a path to deeper cooperation, but this view is not necessarily correct.
Because the exchanges between countries are based on interests, India, as a stable customer of Russia, has long-term cooperation relations, and the settlement of this requirement in RMB is not a matter of principle, and you can choose to make concessions.
After Modi's visit to China, China-India relations have improved, and it is not surprising that India will agree to this condition. But it is worth noting that before visiting China, Modi also visited Japan and signed many cooperation agreements. He also left after attending the "Shanghai Cooperation Summit" and did not attend the 80th anniversary celebration of anti-fascism.
India's enthusiastic interaction and hesitant relationship leave people's wireless reverie. In particular, the background of his visit to China occurred when Trump raised the tariff stick and asked India to hand over 50% tariffs. It's hard to say whether Modi's move closer to China is a last resort or a sincere yearning.
It is only that China holds an open mindset and cooperates equally with any country.As the RMB moves to the world, the Belt and Road achieves success and India's attitude changes, China can treat it with the usual heart.But hopefully the "Shipping Summit" is a good start, China-India relations can move to a new era.
Source of information:
“Russian oil traders have begun asking Indian buyers to pay in yuan”
The Observer Network
India signs long-term contract to buy Russian oil
The New Company)
"The strongest second-hand dealer in history", India
(from the above news)
Trump: India proposes to reduce tariffs on the United States to zero, but it is too late
The morning newspaper.
Foreign Ministers of Hungary and Slovakia reiterate their opposition to EU cutting off energy supplies to both countries
(CCTV News)
China, Russia and Mongolia signed it, "China doesn't care what the West thinks"
(From the news)
Taiwan authorities admit that they are indeed buying Russian naphtha
(Reference to news)
India Observation | Enthusiastic interaction and hesitation, what did Modi get through the SCO Summit?
(From the news)