Whalesbook
India's imports of Russian crude oil reached €5.3 billion in March, more than tripling from previous levels. This surge was powered by doubled import volumes alongside higher global oil prices. The Center for Research on Energy and Clean Air (CREA) reported that India was the second-largest buyer of Russian fossil fuels that month. Crude oil made up 91% of India's total €5.8 billion expenditure on Russian fossil fuels.
State Refiners Re-engage Post-Waiver
State-owned refiners were key drivers of the March import increase. These companies had previously paused Russian oil purchases but resumed significant buying after the United States issued a one-month sanctions waiver. The waiver, designed to stabilize global energy prices, specifically allowed for existing cargoes and shipments on sanctioned vessels. As a result, imports by state-owned refineries jumped by 148% month-on-month. Refineries such as Mangalore and Visakhapatnam, which had stopped imports late last year, restarted operations with Russian suppliers.
Shifting Global Trade Dynamics
Although India's total crude imports saw a slight decrease in March, its imports from Russia doubled. Russia's role as a crucial supplier to India grew, with about 90% of its crude exports going to Asian markets like China and India in the first quarter. China was the top buyer, taking 51% of Russia's crude exports, while India purchased 38%. Turkiye and the EU took smaller shares.
EU Scrutiny on Refined Products
The EU has sanctioned oil products made from Russian crude. However, CREA reported that 14 shipments of these products arrived at EU ports in March. These refined products originated from refineries in India, Turkiye, and Georgia, which process Russian crude oil. The report highlighted significant volumes, estimated at €188 million, of these refined products being exported to countries with sanctions, including the EU, Australia, and the US. India's Jamnagar refinery, owned by Reliance Industries Ltd., and Turkiye's STAR refinery were specifically identified as major exporters of refined products made from Russian crude. European enforcement agencies are urged to investigate these shipments to prevent Russian oil from entering the bloc.