18 November 2024
India has rapidly emerged as the second-largest importer of Russian crude oil since the onset of the Ukraine conflict. Before the war, Russia accounted for less than 1% of India's total oil imports, but this has now surged to nearly 40%.This shift comes as Russia, facing Western sanctions on its crude exports, offers significant discounts on its oil, making it attractive to countries like India.Since the EU and G7 nations imposed a price cap and an embargo on Russian crude in December 2022, a loophole has allowed non-sanctioning countries to import Russian crude, refine it, and re-export the refined products, including diesel, back to the EU at market prices. India has capitalized on this situation, with its fuel exports to Europe increasing by 58% in the first three quarters of 2024. This growth is largely attributed to the refining of discounted Russian crude at Indian refineries such as Reliance's Jamnagar, Nayara Energy in Vadinar, and Mangalore Refinery.In 2024, India's exports of refined oil products to the EU, which had previously been a minor player, now stand at a significant volume, leveraging the discounted Russian crude. India's refineries are increasingly reliant on Russian oil, with a majority of the fuel sent to the EU likely sourced from these imports. Despite the lack of direct sanctions on refined oil products, this dynamic has raised concerns in the West, especially as the EU continues to import refined fuel products derived from Russian crude. India's oil imports from Russia reached nearly EUR 2 billion in October 2024, positioning it as the second-largest buyer of Russian crude, following China. Meanwhile, the emergence of a "shadow fleet" of oil tankers, which bypasses sanctions, further complicates the enforcement of the price cap on Russian oil.
India has rapidly emerged as the second-largest importer of Russian crude oil since the onset of the Ukraine conflict. Before the war, Russia accounted for less than 1% of India's total oil imports, but this has now surged to nearly 40%.This shift comes as Russia, facing Western sanctions on its crude exports, offers significant discounts on its oil, making it attractive to countries like India.Since the EU and G7 nations imposed a price cap and an embargo on Russian crude in December 2022, a loophole has allowed non-sanctioning countries to import Russian crude, refine it, and re-export the refined products, including diesel, back to the EU at market prices. India has capitalized on this situation, with its fuel exports to Europe increasing by 58% in the first three quarters of 2024. This growth is largely attributed to the refining of discounted Russian crude at Indian refineries such as Reliance's Jamnagar, Nayara Energy in Vadinar, and Mangalore Refinery.In 2024, India's exports of refined oil products to the EU, which had previously been a minor player, now stand at a significant volume, leveraging the discounted Russian crude. India's refineries are increasingly reliant on Russian oil, with a majority of the fuel sent to the EU likely sourced from these imports. Despite the lack of direct sanctions on refined oil products, this dynamic has raised concerns in the West, especially as the EU continues to import refined fuel products derived from Russian crude. India's oil imports from Russia reached nearly EUR 2 billion in October 2024, positioning it as the second-largest buyer of Russian crude, following China. Meanwhile, the emergence of a "shadow fleet" of oil tankers, which bypasses sanctions, further complicates the enforcement of the price cap on Russian oil.
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