Donald Trump is ramping up pressure on India to cut its Russian oil imports. This move aims to limit Moscow’s revenue from energy exports. However, industry experts believe the main result will be a bigger, murkier shadow market for Russian oil.
India’s Role in Russian Oil Trade
India has emerged as a major buyer of Russian oil, often benefiting from discounted rates since Western sanctions began. Trump’s renewed push could force India to look elsewhere for energy. But, as seen in previous sanctions, Russian oil tends to find its way into global markets through less transparent channels. Traders simply reroute shipments through intermediaries, disguising the oil’s true origin.
Expanding the Shadow Market
This shift boosts the size and complexity of the so-called ‘shadow market.’ Instead of cutting off Russia’s revenue, strict policies often encourage more creative and opaque trading. As a result, tracking oil flows becomes harder, and prices may fluctuate as supply chains adapt.
For more details, read the original article on Reuters.
