The functioning of the European institutions is always very annoying, since hypocrisy occupies a cardinal place there.
Here’s an article from MarketWatch, a leading US financial news site, entitled “Why India is the Big Winner as EU Oil Ban Repaints Energy Trade Map in Russia”!
Come on, let me give you a quick summary.
Europe no longer buys Russian oil or diesel refined in Russia.
But we have to drive the same number of trucks and fill the same number of sales every day.
So India is suddenly buying oil from the Russians at a good price.
India refines this oil and exports it back to us…
But the honor is certain.
We didn’t buy oil from the Russians.
“As the EU pulls out of Russian refined products, we increasingly suspect that India will become the de facto refining hub for Europe,” said Michael Tran, global energy strategist at RBC Capital Markets, in a statement Tuesday.
All of this is part of the seismic shifts in the physical crude oil and refined products market following the Russian invasion in late February and the rounds of sanctions imposed on Moscow.
Meanwhile, India’s new role stems from charging cheap Russian crude oil, which it refines at a breakneck pace, and then exports refined products.
India is buying record amounts of Russian crude at deep discounts, operating its refineries above rated capacity and reaping the economic rent of exorbitant differences, and exporting gasoline and diesel to Europe. In short, the EU’s policy of screwing Russia is a political victory, but the unintended consequence is that Europe is effectively importing inflation into its own citizens. This is not only an economic boon for India, but also serves as an accelerator for India’s place on the new oil trade geopolitical map. What is meant is that EU policy is effectively making India an increasingly important energy source for Europe. This has never been the case in the past 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.
It’s pathetic.
It’s short-sighted.
You don’t win a war by imposing embargoes that you circumvent yourself.
Sad Europe with troubling leaders.
I can tell you that we will never win this war.
Karl SANNAT
“This is a ‘presslib’ article, which means it may not be reproduced in whole or in part unless this paragraph is subsequently reproduced. Insolentiae.com is the site where Charles Sannat speaks daily, providing unabashed and uncompromising analysis of business news. Thanks for visiting my site. You can subscribe to the daily newsletter free of charge at www.insolentiae.com. »
Source MarketWatch.com here