Latest news with #WesternSanctions
Zawya
04-07-2025
- Business
- Zawya
Discount on Russian Urals oil shipped to India is smallest since 2022, traders say
Discounts for Russia's flagship Urals crude oil for delivery to Indian ports in August shrank to their narrowest levels since 2022 amid high demand and shrinking spot supply, three traders in the grade's market said on Friday. Narrowing discounts and lower supply of spot Russian barrels will push Indian refiners to look for alternative oil like United Arab Emirates' Murban or U.S. West Texas Intermediate (WTI) grades, traders said. The narrowing discount shows how Moscow is managing to keep its oil sales up despite Western sanctions, while its discounted oil is getting more expensive than before, though still cheaper than alternatives. Spot discounts for Urals crude narrowed to $1.70-2 per barrel to dated Brent on delivery ex-ship (DES) basis on average for cargoes arriving in India in August, from $2 to $2.50 per barrel to dated Brent on DES basis in July, the traders said. That is the narrowest discount for Urals oil cargoes to dated Brent in Indian ports since the Ukraine war broke out in 2022. Meanwhile, as the Russian oil grade is traded against Brent benchmark, its outright price has been mostly below the West's $60 per barrel price cap since April this year, allowing Western companies to provide shipping and insurance service for the barrels. Urals oil prices are supported by high demand in India and Turkey, the two largest buyers of the grade, traders said. Turkey's imports of Russia's Urals crude rose in June to their highest level since May 2024 on healthy refinery margins and seasonal demand for motor fuels, LSEG data showed. Meanwhile, Urals oil loadings are set to decline in July from June amid higher refinery runs in Russia. Russian oil supply is also set to decline in August amid a planned shutdown for maintenance of output on the Sakhalin-1 project that exports Sokol oil. India has been the largest buyer of Russian seaborne crude after Moscow diverted its energy supply away from the European Union, which imposed a ban late in 2022. Several Indian refiners that normally buy Russian oil on the spot market are not getting enough Urals oil for delivery in August, the sources said. India is exploring building three new strategic oil reserves to boost its emergency stockpile and strengthen energy security. Large volumes of Russian Urals oil are shipped to India under the deal between the country's largest private refiner, Reliance Industries, and Russian oil giant Rosneft last year, limiting the crude offered in the spot market, traders said.
South China Morning Post
26-06-2025
- Business
- South China Morning Post
Russian central bank to increase forex sales to US$113.53 million a day from July 1
The Russian central bank said on Thursday it will increase its foreign currency sales to 8.94 billion roubles (US$113.53 million) a day from July 1 for the rest of the year, compared with 8.86 billion roubles previously. Advertisement Under a complex scheme of foreign currency operations, the central bank buys and sells forex to ensure supply on the domestic market and also on behalf of the finance ministry, which runs the budget reserve National Wealth Fund (NWF). The netting of the central bank's own transactions and ones it conducts on behalf of the finance ministry provides a figure for overall forex interventions by the state, a major factor for the rouble market. The announcement implied that net sales of foreign currency by the state will rise to 7.45 billion roubles from 7.36 billion roubles from July 1 until July 4, when the finance ministry will announce new parameters for NWF transactions. The central bank cannot buy and sell dollars and euros because of Western sanctions imposed over Russia's actions in Ukraine Advertisement China's yuan, which is now the most traded foreign currency in Russia , has become the regulator's only instrument for forex interventions. The NWF is now held in yuan and gold.
Yahoo
20-06-2025
- Business
- Yahoo
Putin boasts about Russia's economy despite recession fears
President Vladimir Putin has hailed Russia's economic outlook, saying it has managed to curb inflation and ease its reliance on energy exports. His optimistic account in a speech at the St Petersburg International Economic Forum contrasted with sombre statements by some members of his government, who warned at the same conference that Russia could face a recession. Economic Minister Maxim Reshetnikov had said that the country is 'on the brink of going into a recession'. Mr Putin mentioned the recession warnings, but emphasised that 'it mustn't be allowed'. He pointed out that manufacturing industries have posted steady growth, allowing the country to reduce its reliance on oil and gas exports. 'The perception of Russian economy as based on raw materials and dependent on hydrocarbons exports have clearly become outdated,' Mr Putin said, adding that the economy grew by 1.5% in the first four months of 2025 and inflation has dropped from double digits to 9.6%. Mr Putin has used the annual forum to highlight Russia's economic prowess and encourage foreign investment, but Western executives have shunned it after Moscow sent troops into Ukraine in 2022, leaving it to business leaders from Asia, Africa and Latin America. The economy, hit with a slew of Western sanctions, has so far outperformed predictions. High defence spending has propelled growth and kept unemployment low despite fuelling inflation. Large recruiting bonuses for military enlistees and death benefits for those killed in Ukraine also have put more income into the country's poorer regions. But over the long term, inflation and a lack of foreign investments pose threats to the economy. Economists have warned of mounting pressure on the economy and the likelihood it would stagnate due to lack of investment in sectors other than the military. Mr Putin said the growth of military industries helped develop new technologies that have become available to the civilian sector. He vowed to continue military modernisation, relying on lessons learned during the fighting in Ukraine. 'We will raise the capability of the Russian armed forces, modernize military infrastructure and equip the troops with cutting-edge equipment,' Mr Putin said.
Associated Press
20-06-2025
- Business
- Associated Press
Putin boasts about Russia's economy despite recession fears
ST. PETERSBURG, Russia (AP) — President Vladimir Putin on Friday hailed Russia's economic outlook, saying it has managed to curb inflation and ease its reliance on energy exports. His optimistic account in a speech at the St. Petersburg International Economic Forum contrasted with somber statements by some members of his government who warned at the same conference that Russia could face a recession. Economic Minister Maxim Reshetnikov had said Thursday that the country is 'on the brink of going into a recession.' Putin mentioned the recession warnings, but emphasized that 'it mustn't be allowed.' He pointed out that manufacturing industries have posted steady growth, allowing the country to reduce its reliance on oil and gas exports. 'The perception of Russian economy as based on raw materials and dependent on hydrocarbons exports have clearly become outdated,' Putin said, adding that the economy grew by 1.5% in the first four months of 2025 and inflation has dropped from double digits to 9.6%. Putin has used the annual forum to highlight Russia's economic prowess and encourage foreign investment, but Western executives have shunned it after Moscow sent troops into Ukraine in 2022, leaving it to business leaders from Asia, Africa and Latin America. The economy, hit with a slew of Western sanctions, has so far outperformed predictions. High defense spending has propelled growth and kept unemployment low despite fueling inflation. Large recruiting bonuses for military enlistees and death benefits for those killed in Ukraine also have put more income into the country's poorer regions. But over the long term, inflation and a lack of foreign investments pose threats to the economy. Economists have warned of mounting pressure on the economy and the likelihood it would stagnate due to lack of investment in sectors other than the military.
Reuters
19-06-2025
- Business
- Reuters
Russia's VTB still plans to open a branch in Iran but will wait for hostilities to end first, CEO says
Russia, June 19 (Reuters) - Russia's second largest lender VTB still plans to open a branch in Iran, but will wait for hostilities between Israel and Tehran to end and is analysing the situation, VTB CEO Andrei Kostin said on Thursday. VTB, which is under Western sanctions, opened a representative office in Iran in 2023 and has applied for a banking licence. Israel bombed nuclear targets in Iran on Thursday and Iranian missiles hit an Israeli hospital overnight, as the week-old air war escalated with no sign yet of an off-ramp. "We do not know, nobody knows how the situation will develop there. We are analysing the situation," Kostin told reporters on the sidelines of Russia's biggest economic forum in St. Petersburg. "We applied for a licence, now we will wait, we will not take any action," Kostin said. "We are not in a hurry, let the shooting stop first." Kostin said that Iran had become a significant trading partner for Russia in recent years, but that doing business there was difficult. "We saw that there is a substantial business there, but it is not an easy place for business. The currency regulation there is very complex," Kostin said. A Russian-led Eurasian Economic Union (EEU) free trade deal with Iran took effect in May. Iran's Oil Minister Mohsen Paknejad, who visited Moscow in April, said that the free trade deal would increase bilateral trade to $6 billion. Iran was the third-largest buyer of Russian wheat in 2024.
