Last year, Wall Street reported that Saudi Arabia made record purchases of Russian oil and exported it to the European market, effectively acting as a "middleman" to help Russia evade sanctions from the USA and Europe. Recent data shows that Saudi Arabia has been buying large quantities of Russian oil, seemingly providing cover for its "ally" Russia, which is participating in the OPEC+ production cut efforts.

Data from LSEG shows that in November this year, Saudi Arabia and Russia were the largest buyers of Russian marine exports of fuel oil and vacuum gas oil (VGO). According to estimates by Reuters based on LSEG data, in November, Russia's fuel oil and VGO exports increased by 6% month-on-month, reaching approximately 4.26 million tons. Since the EU's ban on Russian oil products took full effect in February last year, Asian countries have become the largest buyers of Russian fuel oil and VGO.

However, India's former major buyer of Russian oil seems to be seeking to diversify its import sources. According to the non-profit think tank Centre for Research on Energy and Clean Air (CREA), although Russia continues to sell oil at discounted prices, India's imports of Russian crude oil in November fell sharply by 55% month-on-month, reaching the lowest level since June 2022, with total crude oil imports in India declining by 11% that month.

At the same time, CREA estimates that compared to the international benchmark price of crude oil, Brent, the discount for Russian Urals-grade crude oil increased by 17% month-on-month in November, with an average discount of $6.01 per barrel. Since the EU sanctions took effect in February last year, Russia's export revenue from Urals-grade crude oil has decreased by approximately 14.6 billion euros.

Commentators have pointed out that India has been actively working to diversify its oil supplies. In November this year, during a visit to Guyana, Indian Prime Minister Modi stated that the Indian government views Guyana as key to India's energy security. During his visit, Modi emphasized in a special session of the local council that he sees Guyana as an important energy source and will encourage Indian large enterprises to invest in the country.

Guyana did not immediately fulfill Modi's wishes. Indian diplomat Jaideep Mazumdar stated that negotiations between India and Guyana will continue, ensuring that agreements between the two countries will provide "greater predictability." Guyana's Minister of Natural Resources, Vickram Bharrat, mentioned that if Exxon Mobil, the main operator of oil production offshore Guyana, agrees, Guyana is willing to supply a substantial amount of crude oil to India.

Bharrat stated that the Guyanese government knows that Exxon Mobil must make some adjustments to its logistics plans, mainly due to distance and cost reasons, as they prefer to accommodate supertankers with a capacity of 2 million barrels.

A month before Saudi Arabia announced a large Buy of Russian Crude Oil Product in November, the relationship between Saudi Arabia and Russia reached a milestone change.

According to the People's Daily Overseas Network, Saudi King Salman began his visit to Russia late on October 4 local time, marking the first visit by a Saudi king to Russia since the establishment of diplomatic relations between the two countries. On the 5th, Russian President Putin held an official meeting with him, and both sides reached a consensus on a series of cooperation issues. Among them, the cooperation in military arms is particularly noteworthy.

According to local Russian media, Saudi Arabia and Russia reached a military purchase agreement worth at least 3 billion dollars, which includes advanced equipment such as the S-400 air defense Missile.

The S-400 "Triumph" is Russia's most advanced long-range air defense Missile system, which has been in service since 2007. It is used to intercept aircraft and cruise Missiles and has missile defense capability, including for medium-range Missiles. According to public information, the maximum range of the S-400 is 400 kilometers, capable of destroying high-altitude targets up to 30 kilometers.

In addition, the Russian Defense Export Company signed a contract with Saudi Military Industry enterprises, authorizing Saudi Arabia to produce Kalashnikov assault rifles AK-103 and various types of ammunition domestically. Alexander Mikheev, general manager of the Russian Defense Export Company, and Ahmed Khatib, chairman of the Saudi Military Industry enterprise, signed the contract. At the same time, Saudi Arabia may also purchase aircraft and helicopters from Russia.

Editor/lambor