India’s thirst for crude oil prompts record oil imports from Russia

The world’s third-largest oil importer, India, remained Russia’s second-largest crude buyer in July, importing $2.8 billion worth of Russian crude, according to the latest. monthly data of Russian fossil fuel exports by the Clean Energy and Air Research Center (CREA).

Last month, India was the second largest buyer of fossil fuels from Russia, CREA analysis showed. Almost 80% of India’s fossil fuel imports from Russia were crude oil, valued at $2.8 billion (€2.6 billion).

China bought 47 percent of Russia’s crude oil exports in July, followed by India (37 percent), the EU (7 percent) and Turkey (6 percent), CREA analysis shows.

India also bought 18% of Russia’s coal exports, also second only to China, which bought 45% of Russia’s exported coal.

Russia has become India’s main oil supplier since the Russian invasion of Ukraine and Western embargoes and other sanctions on Russian crude sales. India has been getting much of the Russian spot supply for the past two years, but now it is looking to sign long term supply offers.

India’s state-owned refiners have begun discussing together the terms of a potential deal with Russia for the long-term supply of Russian oil, a government source familiar with the matter said. Reuters last month.

India needs “predictable and stable” oil reserves amid expanding refining capacity, the source added.

Some of India’s private refiners have already entered into long-term agreements to buy Russian oil. These include Nayara Energy, in which Russian oil giant Rosneft has a stake, as well as Reliance Industries, which operates India’s Jamnagar refinery, the world’s largest and most complex single-site refinery.

Reliance Industries signed earlier this year, a one-year deal with Rosneft to buy at least two cargoes of Urals crude in Russian rubles per month.

Russia was India’s largest oil supplier for the second consecutive fiscal year increase in Russian crude oil imports reduced the share of OPEC and Middle East supply to India to a record low.

By Tsvetana Paraskova

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