India's Russian Oil Imports Surge to Five-Month High Amid US Tariffs and Sanctions
India's crude oil imports from Russia increased by 4% to a five-month high of Euro 2.6 billion in November, making India the second-largest buyer. This surge occurred despite punitive tariffs imposed by the US and sanctions on Russian oil producers. India became a major buyer of discounted Russian oil post-Ukraine invasion, with state-owned refiners increasing purchases. A significant portion of refined products from this crude was subsequently exported to countries like Australia, the EU, and the US.
India's crude oil imports from Russia reached a five-month peak in November, surging 4% month-on-month to Euro 2.6 billion, according to data from the Centre for Research on Energy and Clean Air (CREA). This increase occurred despite punitive tariffs imposed on Indian goods by US President Donald Trump, intended as a “punishment” for New Delhi's energy ties with Moscow. India cemented its position as the second-largest buyer of Russian crude, accounting for 38% of Russia’s November exports, trailing only China (47%).TheThe surge is attributed to India capitalizing on steeply discounted Russian oil, which became available after Western countries reduced purchases following Russia's February 2022 invasion of Ukraine. India, traditionally reliant on Middle Eastern oil, saw Russia's share of its total crude imports jump from under 1% to nearly 40% recently, standing at 35% in November. While US sanctions on major Russian oil producers like Rosneft and Lukoil led to a marginal reduction in private refiners' imports, state-owned refineries significantly boosted their Russian crude volumes by 22% month-on-month in November.Furthermore, India has become a key exporter of refined products made from Russian crude. In November, Indian and Turkish refineries exported Euro 807 million worth of refined oil products to the EU (Euro 465 million), USA (Euro 110 million), UK (Euro 51 million), Australia (Euro 150 million), and Canada (Euro 31 million). Exports to Australia, in particular, witnessed a 69% increase, with all cargoes originating from Reliance Industries' Jamnagar refinery, despite the company ceasing Russian oil use for EU-bound exports due to bans. This trend underscores India's strategic importance in rerouting global energy flows.
