‘Laundromat’ Countries

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•  A report by Finland based group cited that India is leader of five countries named as the “Laundromat” countries.

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• European Countries that imposed crude oil sanctions on Russia oil are using India, others as ‘laundromats’ for refined products.
• 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.

What are ‘Laundromat’ Countries?

• The so-called “laundromat” countries are countries that buy Russian oil and sell processed products to European countries, thus sidestepping European sanctions against Russian Oil.
• The five countries (India, China, Turkey, UAE and Singapore) are identified as ‘laundromats’ for Western countries by the Centre for Research on Energy and Clean Air (CREA).
• The five countries are responsible for 70 percent of Russia’s crude oil exports, the study highlighted.

Process of Circumventing sanctions (White-washing of Russian Oil)

• European countries are simply substituting oil products they previously bought directly from Russia, with the same products now “whitewashed” in third countries and bought from them at a premium.

Source: TH