From 0.2% to 35-40%: India’s imports of Russian oil under spotlight after Trump tariffs
India has historically acquired most of its oil from the Middle East, including Iraq and Saudi Arabia. However, when Russia occupied Ukraine in February 2022, things changed.
India, the world’s third largest raw importer after China and the United States, began to capture the discounted Russian oil after escaping as a tool to punish Moscow for the occupation of Ukraine in the West.
Before the start of the Russian-Ukraine conflict, Russia passed from a market share of only 0.2 percent in India’s import basket, and Iraq and Saudi Arabia to become the number 1 supplier of India up to 40 percent at some point.
This month, Russia provided 36 percent of all crude oil transformed into fuels such as gasoline and diesel imported by India.
Announced that all Indian goods to the United States have been imposed by 25 percent tariffs or taxes, Trump said, “The majority of military equipment has bought from Russia from Russia and that Russia is the largest energy buyer and China and China at a time when Russia wants to stop killing in Ukraine.” “India will therefore pay a penalty (Russian purchases) for the above, starting from August,” India is therefore a 25 percent tariff, and starting from August. ” He said. According to Global real -time data and analytical provider KPler, India bought 68,000 barrels of crude oil from Russia in January 2022. That month, Indian imports from Iraq were 1.23 million BPD and 883,000 BPD from Saudi Arabia.
In June 2022, Russia passed Iraq to become India’s largest oil supplier. That month, compared to 993,000 BPD from Iraq, it provided 1.12 million BPD and 695,000 BPD from Saudi Arabia.
Russian imports peaked to 2.15 million BPDs in May 2023 and changed depending on the reduction of oil. However, volumes have never fallen below 1.4 million BPDs, which was more than India’s best supplier from Iraq before the Russian-Ukraine conflict.
This month, imports from Russia was 1.78 million BPD, almost twice the import of 900,000 BPD from Iraq. According to KPLER, Saudi imports stopped at 702,000 BPD.
After the Ukrainian War, Western energy sanctions against Russia still pushed prices for buyers who still want to buy crude oil.
Discounts at Russia’s flagship Urrals were crude oil to Brent, the world’s most well -known criterion, as high as $ 40 per barrel, but was cut to less than 3 USD.
In December 2022, the G7 countries applied US $ 60 per Russian crude oil price limit. Under the mechanism, European companies have been allowed to send and insure Russian oil to third countries as long as they were sold below the limited price – limiting the impact of sanctions on global oil flows, but an effort to ensure that Russia earns less than trade.
This month, the European Union decided to reduce the price limit to 47.6 USD and brought an automatic and dynamic mechanism for the future review. The idea is to keep the cover 15 percent lower than the average market price.
In addition to stopping India’s economy, cheap Russian oil has gained a profitable job for refineries – this has developed crude oil and exported products to countries.
These include the European Union, which banned directly crude oil purchases from Russia.
Most of the crude oil from Russia to India comes to the ports in Gujarat, where the world’s largest Jamnagar refinery in the world, the world’s largest Jamnagar refinery in the world, and Nayara Energy’s Second Great Refinery in Vadinar for less than 10 miles in Vadinar.
In a recent report, the Energy and Clean Air Research Center, a Finnish -based research group, emphasized the role of “laundry” countries such as India, China and Turkey, which purchased Russian oil, refined it to other products and sold it to buyers who stopped direct purchases from Europe, the United States and Russia.
This month, the European Union decided to ban refined oil imports produced from the Russian raw.
During the Russian-Ukraine War, India took an impartial stance that balances its economic and energy needs with diplomacy.
Petrol Minister Hardeep Singh Puri repeatedly stated that if India had not purchased Russian oil, global oil prices would increase sharply. If the existence of logic would cause pressure on other materials if a large supplier like Russia came out of the shelf, and would lead to an increase in prices.
Foreign Minister S Jaishankar said that it is a logical policy to go to the best agreements for the benefit of the Indian people. In the past, “If you have discussed that our position is putting forward the interests of the Indian people, I claim to be guilty.” He said.
