- Purchases steady despite new US sanctions on Russian firms
- India remains second-largest buyer of Russian fossil fuels
India, the world’s second-largest buyer of Russian oil after China, spent around 2.5 billion euros on crude purchases from Moscow in October, according to the Centre for Research on Energy and Clean Air (CREA). The spending remained unchanged from September’s 2.5 billion euros, even as the United States imposed new sanctions on major Russian oil companies.
On October 22, the US sanctioned Rosneft and Lukoil—Russia’s leading oil producers—in an effort to restrict funds to the Kremlin amid the ongoing Ukraine conflict. Following the sanctions, Indian refiners such as Reliance Industries, HPCL-Mittal Energy, and Mangalore Refinery and Petrochemicals reportedly halted imports temporarily. Despite this, Russia shipped nearly 60 million barrels of crude oil in October, with Rosneft and Lukoil together accounting for about 45 million barrels.
“India remained the second-largest buyer of Russian fossil fuels, importing a total of EUR 3.1 billion. Crude oil dominated India’s purchases at 81 per cent (EUR 2.5 billion), followed by coal at 11 per cent (EUR 351 million) and oil products at 7 per cent (EUR 222 million),” CREA noted in its monthly report. The data reflects India’s continued appetite for discounted Russian energy despite geopolitical pressure.
India’s dependence on Russian crude increased sharply after the February 2022 invasion of Ukraine, when Western sanctions pushed European demand down and opened the market for Asian buyers. Russian oil, often priced as much as US$18–20 per barrel lower than Brent, enabled India to manage its import costs. However, in October, the discount on Russia’s Urals crude narrowed by 4 per cent to an average of US$4.92 per barrel below Brent.
The CREA report further showed that private refiners contributed over two-thirds of India’s Russian oil imports, while state-run refiners nearly doubled their intake in October. The Rosneft-owned Vadinar refinery in Gujarat, now under EU and UK sanctions, operated at 90 per cent capacity and increased imports from Russia by 32 per cent month-on-month. However, exports from the refinery decreased significantly by 47 per cent compared to the same period last year, reaching their lowest level since May 2023.
While imports of Russian crude continue, CREA observed contrasting global trends. The EU and UK reduced purchases of oil products made from Russian crude by 9 per cent and 73 per cent, respectively, while Australia’s imports surged 140 per cent and the US saw a 17 per cent rise. Both countries have not yet banned oil products refined from Russian crude.
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