BRICS: China Saves $10 Billion By Purchasing Laundered Oil

Vinod Dsouza
Xi Jinping China President Russia Vladimir Putin

The US pressing sanctions against BRICS member Russia is helping China save billions of dollars for oil purchases. BRICS country China has saved a record $10 billion this year from purchasing oil for cheaper rates from sanctioned countries. Countries such as Russia, Iran, and Venezuela are under US sanctions and are laundering oil at discounted prices to China. Six out of the 11 BRICS countries produce and export millions of barrels of oil across the world.

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The only beneficiary from the sanctions is China as laundered oil is helping the Communist country save billions. Additionally, Saudi Arabia recently purchased oil from Russia and laundered it to Europe for cheaper rates. The BRICS countries are helping Russia to evade sanctions and sustain its economy.

Also, the Gulf Cooperation Council (GCC) has extended support to Russia providing oil deals for the sanctioned nation. Therefore, Russia is indirectly conducting business with Europe, the Middle East, and Asia by selling oil at lower rates. The GCC said in a statement early this year that the group will extend all forms of cooperation with Russia.

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BRICS: China & India Save Billions By Procuring Laundered Oil

China oil gas commodity brics expansion gdp

BRICS member India has also purchased oil worth billions from Russia since the sanctions were placed in February 2022. India has saved a total of $7 billion by ditching the US dollar as payment for oil trade with sanctioned nations. The usage of the US dollar is not allowed due to sanctions making developing countries initiate payments in local currencies.

Also Read: Will BRICS Countries Suffer Losses If They Abandon the US Dollar?

In other words, the US sanctions are helping BRICS countries save billions and make their local currencies stronger. The development strengthens their native economies making local currencies the sole tender for cross-border transactions. Read here to know how many sectors in the US will be impacted if BRICS stops using the US dollar.