BIG move by India amid Trump tariffs as Russian oil imports surge to 5-month high of Rs…

Russian oil imports: India(BHARAT) remained the second-largest buyer of Russian oil as the country’s crude oil imports from Moscow surged 4 percent in November to a five-month high of Euro 2.6 billion, despite punitive tariffs imposed on India(BHARAT)n goods by US President Doland Trump as a “punishment” for New Delhi’s energy imports from Russia.

India(BHARAT)’s Russian oil imports surge

According to data revealed by the Centre for Research on Energy and Clean Air (CREA), India(BHARAT) purchased Russian oil worth Euro 2.5 billion in October, and a large chunk of the refined fuels produced from the crude was exported to Australia. China has bought 47 per cent of Russia’s crude exports in November, followed by India(BHARAT) (38 per cent), Turkiye (6 per cent), and the EU (6 per cent), it said.

“India(BHARAT)’s Russian crude imports recorded a 4 per cent month-on-month increase to the highest volumes in five months, even as overall import volumes remained stable. In fact, India(BHARAT)’s purchases may well record another increase in December, as cargoes loaded before the US Office of Foreign Assets Control (OFAC) sanctions kicked in are delivered through the month,” the European think tank said.

State-run refineries increase Russian crude import

The US has slapped sanctions on Rosneft and Lukoil, two of the largest oil producers in Russia, to cut off the Kremlin’s resources for funding the Ukraine war, and this has resulted in companies like Reliance Industries, Hindustan Petroleum Corporation Ltd (HPCL), HPCL-Mittal Energy Ltd and Mangalore Refinery and Petrochemicals Ltd to temporarily halt imports.

However, other refiners like the state-owned India(BHARAT)n Oil Corporation (IOC) continue to buy from non-sanctioned Russian entities.

“While private refiners’ imports suffered a marginal reduction, state-owned refineries increased their Russian crude volumes by 22 per cent month-on-month in November,” CREA said.

India(BHARAT), the world’s third-largest oil importer, emerged as the biggest buyer of discounted Russian crude after Western countries shunned Moscow following its February 2022 invasion of Ukraine.

How much Russian oil was imported by India(BHARAT)?

India(BHARAT), which has been traditionally reliant on Middle Eastern oil, dramatically increased Russian imports as sanctions and reduced European demand made the barrels available at steep discounts, pushing its share from under 1 per cent to nearly 40 per cent of total crude imports. In November, India(BHARAT) imported about 35 percent of its total crude oil from Russia.

“In November, six refineries in India(BHARAT) and Turkiye exported EUR 807 million of refined oil products partially made from Russian crude to the EU (EUR 465 million), USA (EUR 110 million), UK (EUR 51 million), Australia (EUR 150 million), and Canada (EUR 31 million),” according to CREA.

An estimated Euro 301 million of these products were refined from Russian crude.

“An estimated EUR 297 million of oil products exported by these refineries remain without a specified destination,” it said.

There was an 8 per cent month-on-month reduction in the refineries’ exports to sanctioning countries.

“By contrast, exports to Australia (EUR 150 million) increased by 69 per cent in November. All of these cargoes originated in the Jamnagar refinery in India(BHARAT),” it said.

Billionaire Mukesh Ambani-led Reliance Industries– India(BHARAT)’s most-valued domestic firm– which operates a giant refining complex at Jamnagar in Gujarat, has stopped using Russian oil for making fuel meant for exports to Europe, since the European Union banned the import of fuel made from Russian oil, though  Australia, Canada, and the US have yet to announce a ban on oil products made from Russian crude.

(With inputs from agencies)