India's Russian Oil Imports Hit €144 Billion, Second Only to China

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AuthorRiya Kapoor|Published at:
India's Russian Oil Imports Hit €144 Billion, Second Only to China
Overview

India has imported approximately €144 billion in crude oil from Russia since the Ukraine war began, making it the second-largest buyer after China. This surge in discounted Russian oil purchases has significantly altered India's energy basket, even as fresh U.S. sanctions and trade pressures lead to a recent decline in imports. Reliance Industries expects no Russian shipments in January, potentially marking a multi-year low.

India's Stint as Russia's Top Oil Customer

India has become the second-largest buyer of Russian crude oil since the start of the Ukraine war, importing a staggering €144 billion worth of the commodity. European think tank Centre for Research on Energy and Clean Air (CREA) estimates Russia has earned nearly €1 trillion from global fossil fuel sales since its full-scale invasion of Ukraine on February 24, 2022, funds that continue to finance the ongoing conflict.

China leads the pack, having purchased €293.7 billion in Russian fossil fuels, including €210.3 billion of oil. India followed, importing €162.5 billion in total fossil fuels, with oil accounting for €143.88 billion and coal for €18.18 billion. The European Union, despite sanctions, spent €218.1 billion on Russian oil, coal, and gas during the same period.

Strategic Shift in India's Energy Basket

As the world's third-largest oil importer, India significantly ramped up its purchases of discounted Russian crude after Western nations curtailed their own imports. Russia's share in India's crude oil basket surged from under 1% before the conflict to a peak of nearly 40%.

However, this share has since receded to below 25% due to escalating U.S. sanctions targeting major Russian oil exporters. CREA data indicates that India's daily purchases of Russian oil from non-sanctioned entities have fallen to approximately €72.92 million in early January, down from a peak of €189.07 million in July 2023.

Reliance Industries Signals Potential Import Low

Reliance Industries, formerly India's largest buyer of Russian crude, has indicated it anticipates no Russian oil shipments for January. This development could drive India's overall imports to a multi-year low, reflecting the tightening grip of Western sanctions and increased trade-related pressures on global energy markets.

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