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India Fuels Europe With Discounted Russian Crude
12 Dec
Summary
- India became the top buyer of discounted Russian crude post-Ukraine invasion.
- November Russian oil imports to India reached €2.6 billion, a five-month high.
- Refined fuels from Russian crude were exported to Australia, EU, and USA.
Following Western sanctions on Moscow after its February 2022 Ukraine invasion, India, a major oil importer, became the leading purchaser of discounted Russian crude. This strategic shift saw India's Russian oil imports climb by 4% in November to €2.6 billion, marking a five-month peak. These imports positioned India as the second-largest buyer of Russian fossil fuels behind China during that month.
Refined products derived from this Russian crude are being exported to various international destinations. In November, India and Turkiye exported €807 million of refined oil products, partially made from Russian crude, to the EU, USA, UK, Australia, and Canada. Notably, €150 million of these exports went to Australia, with all such cargoes originating from the Jamnagar refinery in India.
Despite some companies halting imports due to US sanctions on major Russian oil producers, state-owned refineries in India increased their Russian crude volumes by 22% in November. While the EU has banned fuel made from Russian oil, Australia, Canada, and the US have not yet imposed similar restrictions on oil products derived from Russian crude.
