India and China are still snapping up Russian oil — but they are demanding huge bargains which is hitting Kremlin's war chest

The European Union's sanctions against Russia's energy exports are due to kick in on December 5, more than nine months into the Ukraine invasion.

Russia is going to lose its largest customer and so it is redirecting seaborne exports to Asia.

That's proving to be a challenge. India and China now account for about two-thirds of all Russian seaborne crude-oil exports, and they are demanding huge discounts for their purchases, according to a report.

At the end of last week, Russia's flagship Urals crude oil was trading at a discount of about 40% to the international benchmark, according to an analysis of data from the Intercontinental Exchange in Europe. It's a steep fall from the discount that the company was trading at at the time.

Russia is losing $4 billion a month in energy revenue due to the widening discount of the Urals.

Since oil prices have fallen sharply in recent months due to fears about a recession, strong Russian output, and falling demand, this is important.

Washington doesn't seem to be concerned about India and China's huge purchase of Russian oil even if they pay prices above a G7 imposed price cap.

We're happy to have India get that bargain because Russian oil is going to be selling at a good price. The Treasury Secretary told the news agency that it was fine.

After spiking over 30% in the days after the Ukraine war broke out, the price of oil is now 4.3% higher this year.