Reuters: US, EU step up pressure on Asia over Russian oil, gas

The United States and European countries are increasing pressure on Asian buyers of Russian energy, which could limit India’s oil imports as early as December while making supplies cheaper for China.

Japan is unlikely to stop importing liquefied natural gas (LNG) from Sakhalin, Reuters reports, citing traders and analysts.

However, Washington is exerting pressure on China, India, and Japan through trade negotiations, seeking to reduce their purchases of Russian oil and LNG.

Meanwhile, the United Kingdom recently imposed sanctions on Chinese and Indian companies. The European Union may follow suit, as Western nations argue that Moscow uses revenue from energy exports to finance its war against Ukraine.

Data from analytics firm Kpler show that maritime shipments of key Russian oil grades to China and India could rise to about 3.1 million barrels per day in October — the highest level since June.

According to Kpler senior analyst Muyu Xu, this high level of imports is expected to continue in November due to a sharp increase in Russian exports.

“However, the sudden UK sanctions on Chinese and Indian refineries — and the possibility of more measures from the EU or even the U.S. — could prompt buyers to take a more cautious approach when placing new orders until further clarification emerges,” she noted.

By Vugar Khalilov