A fleet of tankers laden with Russia’s flagship Urals oil has expanded off China’s east coast after India curbed purchases following Western sanctions https://t.co/Grg8AAUfxM ...

Group 1 - Russian companies are focusing on expansion opportunities in the Global South despite Western sanctions, as stated by Andrei Kostin, CEO of VTB [1][2] - VTB has been involved in foreign acquisitions of oil companies, including the acquisition of India's Essar Oil, now known as Nayara Energy, in 2017 [2] - Nayara Energy is targeting the domestic Indian market exclusively, with no plans for exports, and continues to operate despite previous sanctions [3] Group 2 - Kostin believes that Russian oil companies like Rosneft and Lukoil will find new opportunities similar to VTB's shift in focus after sanctions [4] - The demand for Russian oil remains strong, and any restrictions that increase oil prices benefit exporters [4] - VTB plans to expand its presence in India by opening an office in Mumbai, recognizing India's potential to increase exports to Russia, particularly in machinery and pharmaceuticals [6]

Core Insights - The article discusses the significant shift in Shandong Yulong Petrochemical's crude sourcing, primarily moving to Russian oil due to Western sanctions impacting access to other suppliers [4][3][2] Group 1: Supply Chain Changes - Shandong Yulong has transitioned from a diverse supply portfolio to relying almost entirely on Russian crude, securing approximately 350,000 b/d for November delivery compared to only 100,000 b/d earlier in the year [2][4] - The refinery's operational capacity is currently at about 90% of its 400,000 b/d design, with Russian crude now providing nearly all its feedstock [2][5] Group 2: Impact of Sanctions - Western sanctions have inadvertently created a new trade dynamic, linking Russian producers with sanctioned Chinese refiners like Yulong, which now operates almost exclusively on discounted Russian oil [4][3][9] - The sanctions imposed by the UK and EU have restricted Yulong's access to Western supplies, forcing it to adapt its sourcing strategy [4][3] Group 3: Operational Efficiency - Yulong's operational efficiency has improved due to the lower costs associated with sourcing Russian crude, which has offset the deflation in product prices and maintained profitability despite an oversupplied market [6][5] - The refinery has achieved record-high throughput in September and October, running at approximately 90% capacity [5] Group 4: Future Supply Considerations - Analysts express concerns about Yulong's ability to secure the heavy crude necessary for consistent product output, although some suggest that Russia's Urals blend could serve as a suitable substitute [8][7] - Gazprom Neft may redirect its Arctic ARCO crude to Yulong, potentially supplying the heavy feedstock needed for efficient operations [9]

Core Insights - UCO Bank has received government approval to facilitate trade payments for Nayara Energy Ltd., following sanctions imposed by the EU on the refiner [1][2] - Nayara Energy, part-owned by Russian oil major Rosneft, is seeking assistance from UCO Bank to manage payments for crude oil imports and refined fuel product exports [3][6] - The refiner has faced operational challenges, including the need for advance payments and reduced run rates, due to the sanctions and withdrawal of domestic shipowners [4][5] Group 1 - UCO Bank's engagement with Nayara Energy comes after the latter was sanctioned by the EU, leading to a withdrawal of support from large financial institutions [1][5] - Senior executives from UCO Bank have met with finance ministry officials to discuss the execution of payments for Nayara, with operational details still being finalized [2] - Nayara Energy has approached the government for help in securing vessels for local transportation, as domestic shipowners have ceased operations with the company [4] Group 2 - Rosneft holds just over 49% of Nayara Energy, which represents nearly 8% of India's refining capacity and 7% of its retail-fuel network [6] - The sanctions have led to significant operational adjustments for Nayara, including a shift to advance payments and letters of credit prior to fuel shipments [4] - The State Bank of India, among other institutions, has ceased processing transactions for Nayara due to the risks associated with Western sanctions [5]