India’s Russian Oil Imports Remain Resilient Despite Sanctions
According to the Economic Desk of Webangah News Agency, India’s oil imports from Russia have demonstrated resilience despite international sanctions. The daily average for crude oil imports this month stands at 1.2 million barrels.
While this figure represents a decrease compared to the 1.77 million barrels per day recorded in November before sanctions were imposed on Rosneft and Lukoil, it does not reflect the steep decline anticipated by numerous analysts.
Reuters, citing informed sources, suggests that import rates could climb to 1.5 million barrels per day by the end of the year. Furthermore, import flows are expected to remain strong into January as non-sanctioned entities brand shipments in place of Rosneft and Lukoil.
The recent U.S. sanctions, effective as of November 21, targeted approximately half of Russia’s total oil exports, equivalent to about 2 million barrels per day. Since then, importers and exporters have actively sought ways to circumvent these restrictions.
As anticipated, exports from Rosneft and Lukoil have decreased. However, exports of crude oil from non-sanctioned Russian companies have risen since November 21.
Earlier this week, Bloomberg reported that India’s crude oil imports from Russia might fall to 800,000 barrels per day this month due to increased scrutiny by Indian authorities. This scrutiny includes thorough inspections of tankers carrying foreign crude oil and insurance secured outside of Western countries. Bloomberg also noted that all Indian refineries except Nayara Energy have reduced their intake of Russian crude.
However, the Reuters report indicates that these inspections have not disrupted the strong flow of oil from Russia. This situation underscores the limitations of enforcing sanctions, as buyers can turn to non-sanctioned entities and internal exchanges to maintain crude oil supplies.
For Russia, India remains a crucial market, allowing Moscow to offset some of the revenue losses resulting from reduced access to European buyers. For India, discounted Russian oil helps meet domestic demand at lower costs amid global price volatility.
