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Why are India and China still buying Russian oil?
India and China continue to purchase Russian oil mainly because of discounted prices and the need to secure energy supplies amid global volatility. Despite US sanctions, both countries see strategic value in maintaining these energy ties, often exploring alternative payment methods like yuan to bypass sanctions.
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How is the EU planning to reduce its dependence on Russian gas?
The EU has approved a plan to phase out Russian pipeline and LNG gas imports, with new contracts banned from January 2026 and existing ones transitioning until 2028. This move aims to weaken Russia's economic influence and diversify energy sources across member states.
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What are the geopolitical implications of these energy moves?
These energy strategies are reshaping global alliances. While the EU seeks to reduce reliance on Russia, India and China’s continued purchases strengthen their strategic ties with Moscow. These moves could lead to increased geopolitical tensions and shifts in global power dynamics.
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Will Russia’s oil and gas exports decline or shift to new markets?
Russia is likely to shift its exports to countries less affected by sanctions, such as India and China. While some traditional markets may decline, Russia’s energy exports could diversify into new regions, maintaining its role as a major energy supplier despite Western sanctions.
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Are there risks for India and China in continuing to buy Russian oil?
Yes, there are risks including potential secondary sanctions, diplomatic fallout with Western countries, and market instability. However, both nations weigh these risks against the benefits of discounted energy and strategic independence.
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How might these energy moves impact global energy prices?
Continued Russian energy exports to India and China could stabilize or even lower global prices due to increased supply. Conversely, the EU’s efforts to cut reliance on Russian gas might tighten supply and push prices higher in Europe.