Oil Dependency, Imports, and Rule of Origin

Countries heavily dependent on oil for transportation fuel like India import crude oil due to insufficient production. Due to Western sanctions on Russia after the Russia-Ukraine war, Russia sold oil at a discount, attracting countries like China and India. By processing and exporting refined products, countries can benefit from cheaper Russian oil prices. The rules of Origin classify refined oil from a specific country as a product of that country, allowing for legal re-exports to Western countries. For instance, India was able to import Russian oil at a significantly lower price than the Dubai crude benchmark, leading to a notable increase in crude oil imports from Russia post-war.