India Remains Second-Largest Buyer of Russian Oil Despite New Sanctions
India spent €2.5 billion on Russian crude oil in October, staying the second-largest buyer after China despite new US sanctions on Rosneft and Lukoil. Imports rose 11% month-on-month, with state refineries nearly doubling their intake. Private refiners halted imports due to compliance risks, while India seeks alternative sources.
India remained the second-largest buyer of Russian crude oil in October, spending €2.5 billion, according to the Centre for Research on Energy and Clean Air (CREA). Despite new US sanctions on Rosneft and Lukoil, Russian oil imports to India increased by 11% month-on-month, with state-owned refineries almost doubling their volumes. Private refiners, including Reliance Industries, have halted imports due to compliance risks. India's reliance on Russian oil grew after the Ukraine invasion, with imports surging from under 1% to nearly 40% of total crude imports. The Rosneft-owned Vadinar refinery in Gujarat increased production to 90% in October, importing solely from Russia. While exports from the refinery dropped, India's overall Russian crude imports rose. The price discount on Russian oil, though narrowing, remains attractive. India is now exploring alternative sources from the Middle East and Africa to mitigate the impact of sanctions.
