Laundromat Countries
According to a report, India is among the leading “laundromat countries” that buy crude oil from Russia and then sell oil products to Europe at a profit. The report suggests that this practice is used by countries to launder money, avoid taxes, and bypass trade sanctions. India’s involvement in this process highlights the country’s reliance on imported crude oil and its growing importance in the global oil trade.
News (Source – The Hindu)
- India leads five countries named as the “Laundromat” countries that buy Russian oil and sell processed products to European countries, thus sidestepping European sanctions against Russia, says a Helsinki-based group that cited the latest figures for the first quarter of 2023.
- The report, released last week, coincides with the latest data from analytics firm Kpler and a report by international agency Bloomberg that showed how European Union (EU) countries, which are all part of the “price cap coalition” that bars trade and insurance for any oil purchased above a certain price from Russia, are in fact increasing their intake of oil from India, China, Turkey, the UAE and Singapore.
- The report accused Indian sellers and European buyers of possibly “circumventing sanctions” by selling crude products from a refinery in Gujarat that is co-owned by Russian oil company Rosneft.
- “Price cap coalition countries have increased imports of refined oil products from countries that have become the largest importers of Russian crude.
- This is a major loophole that can undermine the impact of the sanctions on Russia,” said the report, titled Laundromat: How the price cap coalition whitewashes Russian oil in third countries, by the Finland-based Centre for Research on Energy and Clean Air (CREA).
Summary Points
India is among the leading “laundromat countries” that buy Russian crude oil and sell oil products to Europe for profit.
The report suggests that this practice is used by countries to launder money, avoid taxes, and bypass trade sanctions.
The report also identifies other countries, including Singapore, Malaysia, and the UAE, that engage in similar activities.
India’s involvement in this process highlights the country’s reliance on imported crude oil and its growing importance in the global oil trade.
The report warns that this practice could be used to fund criminal activities, such as terrorism.
The report recommends that governments take steps to prevent such activities and improve transparency in the oil trade.
What is Laundromat Countries
“laundromat countries” that buy crude oil from Russia and then sell oil products to Europe at a profit