India’s imports of Russian crude oil are likely to fall sharply in the near term but are not expected to stop entirely, analysts said, according to PTI. Russian crude is a major feedstock for producing petrol and diesel in India.
Fresh US sanctions on Rosneft, Lukoil and their majority-owned subsidiaries came into force on 21 November, making crude linked to these entities a “sanctioned molecule”. India’s imports from Russia have averaged 1.7 million barrels per day (bpd) this year, with arrivals projected at 1.8 to 1.9 million bpd in November as refiners front-loaded discounted purchases ahead of the restrictions.
Imports seen sliding to around 4,00,000 bpd
Analysts expect Russian crude deliveries to decline significantly in December and January, with near-term volumes estimated at around 4,00,000 bpd.
India, which traditionally depended on Middle Eastern suppliers, expanded purchases from Russia after the February 2022 invasion of Ukraine, taking advantage of steep discounts as Western sanctions reduced European demand.
