The surplus, now more than $70 billion, comes from rising exports of oil and gas—and other commodities, too—which offset sanctions imposed on the country by Western powers. The surplus was also boosted by high prices and a drop in imports — to $72.3 billion in the first quarter from $88.7 billion in the second quarter — thanks to sanctions, which have a bigger impact on imports than exports. Sanctions on Russia’s energy exports have made little progress in curbing capital flowing into Russia that it could use to continue its aggression in Ukraine. India, on the other hand, has been buying record amounts of Russian crude — at nearly a million barrels a day since June — that’s about a fifth of India’s total crude oil imports, according to Reuters. China also imported record amounts of cheap Russian crude in June, even amid a Covid lockdown. Russia is China’s main supplier of crude oil, and neither India nor China show signs of reluctance to buy Russian crude – a product subject to sanctions by Europe and the United States. It’s not just oil. Russia is also said to be close to a deal with Brazil to supply the South American country with cheap diesel, Reuters reported on Monday. Brazilian President Bolsonaro, who faces a difficult re-election in October because of high fuel prices, has a friendly relationship with Russian President Vladimir Putin. Russian exports were $153.1 billion in the second quarter, after reaching $166.4 billion in the first quarter. The United States plans to discuss a potential oil price cap on Russian crude with major crude buyers such as India to garner support for such a plan — one that would seek to allow buyers to continue buying Russian crude but limit the revenue Russia receives for these purchases. By Julianne Geiger for Oilprice.com More top reads from Oilprice.com:
