There are fortunes to be made delivering Russian petroleum to India. Price evaluations by Platts, an unit of S&P Global, show a margin of more than $20 between a barrel of Russias Urals crude lifted in the Baltic region and the same oil delivered to the west coast of India.

On a flow thats now performing at about 1.5 million barrels a day, that works out at $1 billion a month. The European Union banned imports of Russian crude in December, putting the nation at the grace of 2 big buyers: China and India.

Numerous new trading firms with ties to Moscow emerged-- especially in Dubai-- prior to the procedure, together with a cost cap on Russian oil, was imposed. Urals freights in the Baltic are trading about $40 a barrel below Dated Brent, a crucial criteria for physical oil trades, while cargoes provided on the west coast of India have actually been marked down by a much smaller $20 a barrel on average given that mid-January. A few of the distinction will go to spend for the tankers that make the two-month round trip.

The export rate is likewise more instant than the delivered one.

In theory, though, the gap suggests huge trading revenues.