Russian Crude Oil
India significantly increased its purchases of Russian crude last month and imports from Russia reached the highest level in five months. According to a report by a European think tank, India bought crude oil worth about EUR 2.6 billion from Russia in November, which is about 4% more than in October. A large quantity of refined fuel was made from these barrels purchased from Russia and sent to many countries, especially Australia.
India becomes Russia’s second largest buyer
The report of the Center for Research on Energy and Clean Air (CREA) shows that in November, China was the largest buyer of Russian fossil fuel, while India was in second place. China’s share in Russia’s total crude exports was 47%, India’s 38%, Türkiye and Europe’s 6% each.
Interestingly, earlier India used to import more from Middle-Eastern countries, but the Ukraine war and the distance of Western countries from Russia changed the situation. Russian oil, available at huge discounts, quickly attracted India. While before the war, Russia’s share in India’s oil basket was not even 1%, now it has reached 40% at its peak.
Purchasing increased despite American restrictions
On October 22, America had imposed sanctions on two big Russian companies, Rosneft and Lukoil. After this, some big companies of India like Reliance, HPCL and MRPL temporarily stopped purchases.
However, the government company Indian Oil (IOC) is still buying oil from those Russian suppliers which are not under sanctions. CREA report says that while private refineries reduced imports, government refineries increased the purchase of Russian oil by 22% in November.
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India’s oil is not just for domestic needs
India is the world’s third largest oil importer. The purchased Russian oil is not only used here to make petrol and diesel, but is also exported to foreign countries in large quantities. In November, six refineries in India and Turkey sent refined oil products worth about EUR 807 million abroad. Of this, oil worth approximately EUR 301 million was produced by processing Russian crude.
69% jump in exports to Australia
It was reported in the report that in November, fuel exports sent by India to Australia increased by 69%. This entire refined fuel was sent from Jamnagar Refinery of Reliance Industries. Canada also received a shipment for the first time in eight months that included fuel made from Russian crude.
Purchasing did not stop despite Europe sanctions
Although the European Union has banned the import of fuel made from Russian oil, Australia, Canada and America have not imposed any such ban. For this reason, Indian refineries are able to send oil there easily.