The functioning of the European institutions is always very annoying as hypocrisy holds a cardinal place there.
Here’s an article from MarketWatch, a leading US financial news site, headlined “Why India is the big winner as EU oil ban in Russia redraws energy trade map”!
Come on, let me give you a quick summary.
Europe no longer buys Russian oil, nor any diesel refined in Russia.
But we have the same number of trucks to run and the same number of sales to fill every day.
So suddenly, India buys oil from the Russians at a good price.
India refines this oil, and re-exports it to us…
But honor is safe.
We did not buy oil from the Russians.
“As the EU withdraws from Russian refined products, we increasingly suspect that India is becoming the de facto refining hub for Europe,” said Michael Tran, global energy strategist at RBC. Capital Markets, in a Tuesday note.
This is all part of the seismic shifts taking place in the physical crude and refined products market following the Russian invasion in late February and the rounds of sanctions imposed on Moscow.
Meanwhile, India’s new role comes from loading up on cut-price Russian crude, which it has been refining at a breakneck pace and then exporting refined products.
India is buying record quantities of Russian crude at deep discounts, operating its refiners above nameplate capacity and capturing the economic rent from exorbitant differentials and exporting gasoline and diesel to Europe. In short, the EU’s policy of turning the screws on Russia is a political victory, but the unintended consequence is that Europe is effectively importing inflation to its own citizens. This is not only an economic boon for India, but it also serves as an accelerator for India’s place in the new geopolitical oil trade map. What we mean is that EU policy is effectively making India an increasingly vital source of energy for Europe. This has never been the case historically, and that is why exports of Indian products have reached record highs in recent months.”
All of this is absurd.
It’s not politics, not even with a little p.
You don’t win a war by decreeing embargoes that you circumvent yourself.
Sad Europe with distressing leaders.
I can tell you that we will never win this war.
“This is a ‘presslib’ article, that is to say free of reproduction in whole or in part provided that this paragraph is reproduced following it. Insolentiae.com is the site on which Charles Sannat expresses himself daily and delivers an impertinent and uncompromising analysis of economic news. Thank you for visiting my site. You can subscribe to the daily newsletter free of charge at www.insolentiae.com. »
Source MarketWatch.com here