India Boosts Russian Oil Purchases to €2.6 Billion Despite U.S. Sanctions
India's Russian oil imports surged to a five-month high of €2.6 billion in November, a 4% increase, despite U.S. sanctions on Russian producers. Data from CREA reveals India is Russia's second-largest oil buyer, driven by discounted prices post-Ukraine invasion. While some private refineries paused imports due to sanctions, state-owned firms like Indian Oil Corporation continued purchases. A significant portion of this crude is re-exported as refined products to countries like Australia, generating substantial revenue for India.
India significantly ramped up its crude oil purchases from Russia in November, reaching a five-month peak of €2.6 billion, representing a 4% increase from October's €2.5 billion. This surge occurred despite U.S. sanctions imposed on Russia's leading oil producers, Rosneft and Lukoil, on October 22. According to a report by the Europe-based Center for Research on Energy and Clean Air (CREA), India solidified its position as the second-largest buyer of Russian fossil fuels, trailing only China, which accounted for 47% of Russia's crude oil exports compared to India's 38%.The article highlights that while major private Indian refineries, including Reliance Industries and HPCL, temporarily halted imports due to the sanctions, state-owned entities like Indian Oil Corporation continued their purchases, boosting Russian crude volumes by 22% month-on-month in November. India, the world's third-largest oil importer, has dramatically increased its reliance on discounted Russian oil since the February 2022 invasion of Ukraine, shifting its crude import share from less than 1% to nearly 40%.A crucial aspect of India's strategy involves refining this Russian crude and re-exporting the products. In November, Indian and Turkish refineries collectively exported refined oil products, partially derived from Russian crude, valued at €807 million to various nations, including the European Union (€465 million), the United States (€110 million), and Australia (€150 million). Notably, exports to Australia alone surged by 69% in November, originating primarily from India's Jamnagar refinery. CREA estimates that €301 million worth of these refined products were directly derived from Russian crude, underscoring India's pivotal role in global oil markets amidst ongoing geopolitical tensions.
