MARCH 20259INDIA'S OIL TRADE SHIFTS FROM RUSSIA TO U.S. AMID SANCTIONS IMPACTKRONES' NEW MANUFACTURING PLANT TO BOOST JOBS & ECONOMIC GROWTHThe Karnataka government's proposition to set up a new manufacturing plant in the region by Krones is projected to create 550 jobs-serving the state's $118 India's crude oil import landscape is shifting as sanctions cut Russian oil exports to the country by nearly 25% in February, while U.S. shipments have almost doubled. This comes amid India's plan to increase American energy purchases by two-thirds to $25 billion, signaling a significant trade shift.According to energy cargo tracker Vortexa, an average of 1.07 million barrels per day (mbd) of Russian crude was loaded for India-bound tankers in the first 20 days of February, down from 1.4 mbd in January. In contrast, U.S. crude loadings surged to 0.2 mbd from 0.11 mbd."We broadly see a decline in exports to India from Russia with other suppliers picking up exports to offset this," said Rohit Rathod, analyst at Vortexa. "Indian imports from the US are likely rising to compensate for Russian light sweet ESPO Blend cargoes, loadings of which have been impacted by the recent US sanctions."Meanwhile, Saudi Arabia and Iraq have increased shipments to India, with Saudi crude rising to 0.91 mbd and Iraq's loadings reaching 1.08 mbd.As refiners navigate trade restrictions, Russian and U.S. cargoes loaded in February will be reflected in India's March imports. With sanctions tightening post-March 12, Indian refiners are diversifying supply sources, reinforcing their dependence on Middle Eastern and American crude. billion rejection plans set forth in this year's Geinvestor Meeting (GIM). The plant's ground-breaking in Vemagal was presided over by Karnataka Large and Medium Industries Minister, M.B. Patil, assuring the state of progressing investment.The Karnataka government witnesses this project as part of an overarching plan to advance economic growth following the successful December 2023 delegation to Germany led by Minister Patil. During the visit, discussions with Krones at its headquarters at Neutraubling resulted in a preliminary memorandum of understanding, which laid the groundwork for the Vemagal plant.The new facilities are expected to both increase Krones' manufacturing capability and create a positive employment and infrastructure effect for the local community.Krones has also announced in April 2024 that, as part of the pathway to a carbon-free economy, it will work toward net-zero greenhouse gas emissions across its entire value chain by 2040. To that end, the company wants to reduce the emissions within Scopes 1 to 3 by 90 percent, thereby offsetting the other 10 percent as ordered by the Science Based Targets initiative. The Vemagal plant is a centerpiece within Krones' long-term commitment to business growth and sustainability.
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