India’s Russian oil imports jump 50 times; now accounts for 10% of all import: Official

Image credit: India TV News

A senior government official claimed on Thursday that India now imports more than 50 times as much crude oil from Russia as it did in April, making up 10% of all petroleum bought globally.

According to a senior government official on Thursday, India’s imports of crude oil from Russia have increased more than 50 times since April and now account for 10% of all petroleum purchased internationally. Prior to the Ukraine War, only 0.2% of India’s total oil imports came from Russia.

“In April, 10% of India’s total oil imports came from Russia. According to the official, it is currently one of the top 10 providers. Private refiners Reliance Industries and Rosneft-backed Nayara Energy have purchased up to 40% of the Russian oil market.

After Iraq, Russia overtook Saudi Arabia as India’s second-largest oil supplier last month as refiners snatched up Russian crude that had become significantly cheaper due to the conflict in Ukraine. About 25 million barrels of Russian oil were purchased by Indian refiners in May.

For the first time in April, crude of Russian provenance made up 10% of all seaborne imports into India, up from 0.2% in 2021 and Q1 2022. India, the third-largest oil consumer and importer in the world, has long defended its decision to buy crude oil from Russia after President Vladimir Putin authorised the invasion of Ukraine.

India increased its oil imports from Russia during a period of rising energy prices by taking advantage of cheap prices. India is the third-largest oil consumer in the world after the US and China, using more than 85% of imported oil.

Russia’s Ural crude oil price has dropped as fewer international governments and businesses have chosen to avoid purchasing Russian energy exports in the wake of its invasion of Ukraine. This has allowed Indian refiners to purchase Russian crude oil at discounts of up to $30 a barrel. Prior to now, the disadvantage of crude was its expensive freight.

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