While imports by private oil companies fell slightly in November, state-owned oil companies increased their purchases of Russian crude by 22 percent, CREA reported. Companies like Indian Oil Corporation continue to buy from non-sanctioned Russian suppliers.
Over the past few months, the US’s efforts to pressure India through tariffs and other sanctions appear to be failing. Recently, news emerged that India’s crude oil imports from Russia increased in November. According to reports, India’s oil imports from Russia increased by 4 percent in November, reaching a five-month high of 2.6 billion euros. A European research institute released this information on Friday.
The Center for Research on Energy and Clean Air (CREA) stated in a report that India was the second-largest buyer of Russian crude oil in November, after China. Previously, in October, India had purchased 2.5 billion euros worth of crude oil from Russia. According to the report, 47 percent of Russia’s total crude oil exports in November went to China, while 38 percent went to India. Of the other buyers, Turkey accounted for 6 percent and the European Union accounted for 6 percent.
Purchases may increase further
CREA reported that India’s crude oil imports from Russia increased by four percent compared to October, while total import volumes remained roughly stable. This was the highest purchase in the past five months. The organization estimates that purchases may increase further in December, as some oil tankers had already departed before the US sanctions on Russian oil came into effect.
It is noteworthy that on October 22, the US imposed sanctions on major Russian oil companies, Rosneft and LukOil, after imposing a 50 percent tariff on India, citing their purchases of Russian oil. Following these sanctions, Reliance Industries, HPCL, HPCL-Mittal Energy, and Mangalore Refinery and Petrochemicals Limited temporarily suspended imports of Russian oil.
State-owned oil companies are the reason
However, public sector companies like Indian Oil Corporation continue to purchase from non-sanctioned Russian suppliers. CREA reported, “While imports by private oil companies declined slightly in November, state-owned oil companies increased their purchases of Russian crude oil by 22 percent.”
The deadline for US sanctions on Russia has expired. Will India stop buying Russian oil?
It should be noted that India, the world’s third-largest oil importer, became Russia’s largest customer after the Ukrainian war began in 2022. Russia, which once accounted for less than one percent of Russian imports, has now grown to nearly 40 percent of India’s total oil imports. Despite a subsequent decline, Russia contributed 35 percent of India’s total crude oil supply in November.
Refined fuel also exported
India refines this imported crude oil into fuels such as petrol and diesel, both for domestic use and export. CREA reported that in November, six refineries in India and Turkey exported refined fuel worth 807 million euros. Of this, 465 million euros went to the European Union, 110 million euros to the United States, 51 million euros to the United Kingdom, 150 million euros to Australia, and 310 million euros to Canada. Of these, approximately 301 million euros worth of refined oil products were made from Russian crude oil. While the European Union has imposed restrictions on fuels made from Russian crude oil, Australia, Canada, and the United States have not yet imposed such restrictions.
