According to an unnamed Indian official:
“Russia is offering oil and other commodities at a heavy discount. We will be happy to take that.”
“We have some issues like tanker, insurance cover and oil blends to be resolved.”
“Once we have that, we will take (Russia’s) discount offer.”
India imports about 80% of its oil, only around 2 – 3% from Russia, an amount perhaps to significantly increase ahead.
Two unnamed Indian officials said that Delhi is seeking ways to mitigate the economically adverse effects of sharply higher oil prices.
Its government may agree to Russia’s offer via rupee-ruble transactions.
It’ll bypass US petrodollar hegemony, weakening the dollar as the world’s reserve currency, notably if other nations increasingly go the same way.
Dollar strength as the world’s reserve currency depends on the petrodollar system.
Its supremacy makes money printing madness possible.
It finances the US budget deficit, its empire of bases and forever wars.
India buys billions of dollars worth of Russian weapons. Both countries have investment ties.
Delhi refused to ally with hegemon USA’s condemnation of Russia’s demilitarization and deNazification campaign against Ukraine.
The Modi government is looking to Russia for more affordable supplies of oil, other commodities and fertilizer.
Moscow urged non-Western nations to maintain normalized trade and investment ties.
Former Indian envoy to Russia, D. Bala Venkatesh Varma, said his country isn’t part of US/Western hostility toward Russia.
It’s “not a fight we have created,” he stressed, adding:
Delhi shouldn’t have to pay a price for what’s going on.
The Biden regime is pressuring India against buying discounted Russian oil and other commodities, White House press secretary Psaki saying:
“Our message to any country continues to be, obviously, abide by the sanctions” — no matter their illegality.
Separately, the Saudis may sell some oil to China in return for payment in yuan, further weakening petrodollar strength if trade this way is initiated and grows.
On Tuesday, the WSJ reported that Beijing and Riyadh are engaged in “active talks” for China to buy some Saudi oil in yuan, noting:
Taking this step would “mark another shift by the world’s top crude exporter toward Asia.”
Beijing buys over 25% of its oil from Saudi Arabia.
If a deal with Beijing is agreed on, Riyadh may also go along with yuan-denominated futures contracts, known as petroyuan, the Journal reported, adding:
If the Saudis bypass petrodollars in some of its oil exports, the “profound shift” would be another blow to dollar hegemony.
Growing Russian/Saudi ties come at the expense of Washington’s relationship with the kingdom.
According to China’s General Administration of Customs, Beijing is Riyadh’s largest oil buyer of 1.76 million barrels daily.
Russian oil sales to China are nearly as much at 1.6 million barrels daily.
According to an unnamed Saudi official:
“The dynamics have dramatically changed.”
“The US relationship with the Saudis has changed.”
“China is the world’s biggest crude importer, and they are offering many lucrative incentives to the kingdom.”
“China has been offering everything you could possibly imagine to the kingdom.”
According to economist Gal Luft:
“The oil market, and by extension the entire global commodities market, is the insurance policy of the status of the dollar as reserve currency.”
“If that block is taken out of the wall, the wall will begin to collapse.”
Cracks in the international economic order already exist.
The same goes for US decline on the world stage. It’s been ongoing for decades, notably post-9/11, especially by recent events.
They forged a stronger Sino/Russian alliance to deter US rage for global dominance by smashing one nation after another economically and militarily.
All-out US sanctions war on Russia gave China pause, knowing that its interests could be harmed in similar fashion.
The same goes for other nations unwilling to subordinate their sovereign rights to a higher power in Washington.
A new economic world order is emerging at the expense of US hegemonic aims.
Slowly and inexorably, the price of imperial arrogance is coming home to roost.