With the new EU sanctions coming into place which will basically freeze out companies & countries which take in oil from Russia outside a price cap mechanism --- China and India are backing away from purchasing Russian oil This, over time, will be the final nail in the Russian economic casket.
Indian refiners becoming wary of buying Russian oil as EU sanctions loom - sources
https://www.reuters.com/business/en...ian-oil-eu-sanctions-loom-sources-2022-11-16/
Indian refiners are wary of buying Russia crude oil loading after Dec. 5 when European Union sanctions take effect, pending clarity on the proposed G7 price cap mechanism, according to sources familiar with the refiners' crude purchase plans.
Chinese refiners have already begun slowing down Russian oil imports from next month.
The Asian giants, who are two of the world's top three importers, had become Russia's biggest customers after the West shunned Russian oil after the outbreak of war in Ukraine.
Reduced buying by both of them would leave Russia chasing alternative customers, potentially depressing prices even if those new buyers are unlikely to join a plan by rich nations in the Group of Seven (G7) to cap Russian oil prices.
Reliance Industries Ltd (RELI.NS), operator of the world's biggest refining complex and a major customer for Russia, has not placed orders yet for Russian cargoes loading after Dec. 5, two sources familiar the refiner's purchase plans told Reuters.
Neither has state-run Bharat Petroleum Corp (BPCL.NS), they said.
The Indian companies did not respond to Reuters email seeking comments.
According to the sources, Reliance is cautious about reactions from foreign banks given its exposure to the western financial system and overseas sales of refined products.
"There are too many uncertainties attached to the cap mechanism. We don't know what the payment mechanism could be and what could be the cap level," said a source at one of the state refiners.
Still, Indian Oil Corp (IOC.NS), the country's top refiner, has placed orders for Russian cargoes, including for loading some parcels beyond Dec. 5, under term and spot deals, said one of the sources.
"IOC wants to secure barrels," the source said, adding that Indian refiners have the option of raising purchases under their term deals with the suppliers, mainly in the Middle East, to meet their contractual commitments if they face problems in getting Russian supplies.
IOC did not respond to Reuters email requesting comment.
In contrast, private refiner Nayara Energy, majority owned by Russian entities, plans to continue Russian oil imports, sources aware of its crude purchases said.
After western sanctions were imposed on Russia and Rosneft, which owns about 49% of Nayara, most foreign banks stopped dealing with Nayara, leaving the refiner dealing through Indian banks.
PAYMENT, INSURANCE
While refiners are cautious about sanctions, India and Russia have set up alternatives to western insurance, finance and maritime services in order to conduct their trade.
Indian refiners buy Russian oil on a delivered basis with insurance - cargo, P&I and hull and machinery - arranged by Russian entities. India accepts Russian insurance.
Also, India has recently devised a mechanism to settle trade with foreign nations in rupee terms through vostro accounts of foreign banks in India.
A commerce ministry official on Tuesday said Russia's Gazprombank had opened a vostro account with UCO Bank (UCBK.NS), and VTB Bank (VTBR.MM) and SberBank (SBER.MM) have opened accounts with their own India-based branch offices. read more
India's central bank in July this year introduced a new mechanism for international trade settlements in rupees. read more
I take it India will not be buying much Russian oil in the future.
India can buy as much Russian oil as it wants, Yellen says. The caveat: it can't use Western insurance, finance and maritime services.
https://finance.yahoo.com/news/india-buy-much-russian-oil-074054670.html
Who is buying this crap debt --- which is obviously going to be defaulted upon.
Russia ‘borrows $13.6bn in largest ever debt issuance in a single day’ to continue faltering war
In its latest intelligence report, the Ministry of Defence (MoD) warned that the cash raised is a ‘key mechanism to sustain defence spending’
https://www.standard.co.uk/news/wor...y-of-defence-vladimir-putin-war-b1041151.html
Don't we keep getting repetitive posts from the usual suspects about how they are rolling in cash these days from all the energy revenue?
Yandex moving out of Russia -- that some fine policy you have there, Pootie Poots.
Russia's ongoing invasion of Ukraine is pushing out one of Russia's biggest tech giants
https://news.yahoo.com/russias-ongoing-invasion-ukraine-pushing-015212692.html?fr=sycsrp_catchall
Russia stands to lose its biggest tech company, which would throw a wrench in President Putin's plans to foster Russian-grown alternatives for Western technology.
- Yandex, Russia's biggest tech giant, wants to cut ties with the country, according to the NYT.
- Yandex's parent company has concerns about the impact of the Ukrainian war on its businesses.
- The exit could deliver a blow to President Putin as he focuses efforts on homegrown tech and goods.
Yandex, often referred to as Russia's Google, is the country's largest internet business best known for its search browser and ride-hailing apps. But its Dutch-based parent company, Yandex N.V., wants out of Russia because of the potential negative impact the Ukrainian invasion could have on its business, according to a report by The New York Times.
The exit of Russia's biggest tech company would deliver a blow to Putin, who has made a concerted effort to produce Russian technology and goods as sanctions cut access to Western suppliers.
Yandex N.V. said Friday that its board had "commenced a strategic process to review options to restructure the group's ownership and governance in light of the current geopolitical environment."
These options, Yandex said, included developing some of its international divisions "independently from Russia" and divesting "ownership and control of all other businesses in the Yandex Group." The company added: "This process is at a preliminary stage."
The Bell, a Russian media group, had earlier reported that Yandex N.V. would move its new businesses and most promising technologies — including self-driving cars, machine learning, and cloud-computing services — outside of Russia, the Times reported, citing two anonymous sources familiar with the matter. Those businesses would need access to Western markets, experts, and technology, all of which is unviable while the Russian invasion of Ukraine rages on and Western sanctions remain in place.
However, the decision to move Yandex's fledgling technology businesses might not be up to its parent company. The firm will have to get the Kremlin's approval to transfer Russian-registered tech licenses outside of the country, The Times reported. Plus, Yandex's shareholders would have to approve the broader restructuring plan.
Russia's tech sector takes a beating amid Ukrainian war
Yandex's business, once hailed as a rare Russian business success story, has struggled since the invasion of Ukraine. The tech giant's story is not unlike those found in the Silicon Valley. Yandex employed more than 18,000 people, it was worth more than $31 billion, and is often referred to as the "Google of Russia." It even had offices in downtown Palo Alto, California, at one point.
But since Russia's invasion of Ukraine, thousands of Yandex employees have left Russia, and the price of the company's New York-listed shares lost more than $20 billion in value almost immediately after the war, before Nasdaq suspended trading in its shares. Meanwhile, Yandex's Moscow-listed shares dropped 62% in the past year.
Yandex's misfortune mirrors other Russian tech companies, which have struggled in the face of Western sanctions and the exodus of tens of thousands of Russian IT workers, according to an Al Jazeera report. It's something even Putin can't deny, admitting that the Russian IT sector will experience "colossal" difficulties as the US and 37 other countries restrict Russia's access to technologies, like semiconductors and telecommunications equipment, via export controls.
Untangling Russia's reliance on the global economy has been an uphill battle for the country, even before the Ukranian invasion and its sanctions.
In 2015, the Kremlin tried to stop all government bodies from using foreign software, but by 2019 only 10% of state-used software was Russian made. Russia's not just dependent on foreign tech, either. More than half, or 65% of Russian businesses relied on imports for their manufacturing, according to a 2021 note from Russia's central bank. From cars to office paper, most companies involve foreign providers some place in the supply chain.
Legitimate firms in India will not be selling Russia parts for planes, trains, and automobiles because all of these are dual use items that can also be used in military gear. And any Indian company selling Russia these items will be sanctioned from selling items to the West -- which represents a large bulk of their revenue.
Russia may be able to get some parts via the gray market -- but they probably will need to discount their oil sold to India even more in order to have the Indian government ignore the gray market shipments.
Putin's Sanction-Hit Russia Asks India For Over 500 Products To Keep Key Sectors Running
https://www.benzinga.com/news/22/11...over-500-products-to-keep-key-sectors-running
Amid western sanctions, Vladimir Putin’s Russia has reached out to India to source more than 500 products, including parts for cars, aircraft and trains.
What Happened: As sanctions imposed on Moscow for its invasion of Ukraine squeezed Russia's ability to keep vital industries running, the country reached out to India for the potential delivery of essential products, four sources familiar with the matter told Reuters.
The report noted that the publication saw the provisional list; however, it is unclear how many of the items from the list will eventually be exported and in what quantity.
An unnamed source associated with the Indian government said the request was unusual in its scope. Meanwhile, the source noted that India wants to boost trade with Russia as it eyes to narrow a ballooning trade deficit with Putin’s country.
The Russian Ministry of Industry and Trade has also asked large companies to supply lists of raw materials and equipment needed, according to an industry source in Russia.
The sanctions imposed by the U.S. and its European allies have crippled supplies of some crucial products in Russia. The country’s aviation sector is facing an acute shortage of parts as almost all planes are internationally manufactured. And its automobile parts market is in the doldrums as all major global automakers have left the market.