India’s spending on Russian crude oil stood at €2.5 billion in October, unchanged from September, according to the Centre for Research on Energy and Clean Air (CREA), PTI reported. India continued as the second-biggest buyer of Russian fossil fuels after China during the month.
CREA said India imported a total of €3.1 billion worth of Russian fossil fuels in October. Crude oil accounted for 81 per cent (€2.5 billion) of this, followed by coal (11 per cent) and oil products (7 per cent).
US sanctions disrupt imports by Indian refiners
The United States imposed sanctions on Rosneft and Lukoil on October 22, aiming to limit Moscow’s ability to finance the war in Ukraine. The move prompted refiners such as Reliance Industries, HPCL-Mittal Energy, and Mangalore Refinery and Petrochemicals to halt imports temporarily, according to PTI.
Russia exported around 60 million barrels of crude in October, with Rosneft and Lukoil accounting for 45 million barrels. CREA noted that India’s crude imports from Russia rose 11 per cent month-on-month, with private refiners handling more than two-thirds of the volumes. State-run refiners nearly doubled their purchases from September.
Vadinar refinery ramps up operations
The Vadinar refinery in Gujarat, owned by Rosneft and sanctioned by the EU and the UK since July, increased its utilisation to 90 per cent in October. The refinery has been sourcing crude solely from Russia, and imports rose 32 per cent month-on-month, reaching their highest level since the full-scale Ukraine invasion, CREA said.
India’s reliance on Russian oil grew sharply after the February 2022 conflict, as Western sanctions reduced European demand and made Russian crude available at discounted prices. As a result, Russia’s share in India’s crude basket climbed from under 1 per cent to almost 40 per cent within months.
