Core Viewpoint - The article discusses the significant price differences in Russian oil exports to China and India following the sanctions imposed by Western countries after the Russia-Ukraine conflict, highlighting the strategic and commercial factors behind these disparities. Group 1: Price Discrepancies - China imports Russian oil at prices ranging from $70 to $80 per barrel, while India benefits from discounts, purchasing oil at around $35 per barrel [2][3]. - The average price of Russian crude oil imported by China in the first half of 2024 is projected to be $78, compared to India's average of $42 [4]. Group 2: Quality of Oil - The quality of oil is a major factor in the price difference; China predominantly imports high-quality ESPO crude oil, while India mainly imports lower-quality Ural crude oil [3][5]. - ESPO oil, favored by Chinese refineries, has a higher API gravity and lower sulfur content, making it more efficient for refining and yielding higher-value products [3][6]. Group 3: Settlement Methods - China has shifted to using the yuan for oil transactions with Russia, which accounts for over 90% of their oil trade in 2023, reducing exposure to dollar fluctuations and transaction costs [6][9]. - In contrast, India primarily uses the dollar for transactions, which exposes it to currency risks and higher costs [9]. Group 4: Contractual Agreements - China has long-term contracts with Russia, established in 2014 and upgraded in 2022, ensuring stable pricing and supply, while India relies on short-term spot contracts that can lead to volatile pricing [9][11]. - The long-term agreement with China is valued at $117.5 billion, covering the entire oil and gas supply chain, while India's contracts are less stable and more susceptible to market fluctuations [11]. Group 5: Strategic Implications - The price differences reflect broader geopolitical dynamics, with China securing energy security through stable contracts, while India faces potential risks due to its reliance on short-term deals [11][12]. - The article concludes that the price disparity is not merely a market anomaly but a reflection of the industrial capabilities and strategic priorities of both countries [12].