Whalesbook
India's imports of Russian crude oil saw a significant 29% month-on-month decline in December, reaching the lowest volumes since the implementation of the G7 price cap policy. This sharp reduction, however, is being followed by a strong rebound in January.
December Slump and Refinery Cuts
The import drop was largely driven by a nearly 49% reduction in purchases by Reliance Industries' Jamnagar refinery. State-owned refineries also contributed, cutting their Russian imports by 15% in December. December saw India import 1.2 million barrels of crude from Russia, down from 1.8 million barrels in November.
Import Value and January Recovery
In terms of value, India imported €2.3 billion of Russian hydrocarbons in December, making it the third-largest buyer globally, though displaced from second position by Turkiye. Crude oil accounted for 78% of this, totaling €1.8 billion. This figure marks a decrease from €2.5 billion in October and €2.6 billion in November. Initial data for January 2024 indicates a strong turnaround in import volumes.
Russia's Export Dynamics
The report from CREA noted that the Jamnagar refinery received supplies from Rosneft, using cargoes purchased before U.S. Office of Foreign Assets Control (OFAC) sanctions took effect. Russia's total fossil fuel export revenues saw a marginal 2% month-on-month decline to €500 million per day, the second-lowest figure since the invasion of Ukraine. Russia's fossil fuel exports remain concentrated, with China dominating coal and crude oil, Turkiye leading in oil products, and the EU a key buyer of LNG.
In December, five refineries in India, Turkiye, and Brunei exported €943 million of oil products derived from Russian crude to sanctioning countries, including the EU (€436 million) and the US (€189 million).