In the first three quarters of 2024, India’s exports of fuels, such as diesel, to the European Union increased by 58%, most likely from the refining of discounted Russian oil. In an effort to damage Kremlin finances and leave a gap in funding for the invasion of Ukraine, the EU/G7 nations imposed a price restriction and an embargo on Russian crude oil imports in December 2022.
Indian purchases of Russian crude oil have increased from less than 1% of the total oil purchased in the pre-Ukraine war period to about 40% of the country’s total oil purchases since the invasion, making it the second-largest customer of Russian crude oil.
The price cap and the European countries’ refusal to buy from Moscow meant that Russian crude oil was accessible at a lower price than other internationally traded oil, which was the main reason of the increase. However, fuel exports were fully priced. Prior to Russia’s invasion of Ukraine, Europe bought an average of 154,000 barrels of diesel and jet fuel per day (bpd) from India. This has nearly doubled.
Russian crude accounted for more than one-third of India’s oil product shipments to sanctioned nations in the 13 months following the oil price cap went into force (in December 2022) (EUR 6.16 billion or $6.65 billion). India, the third-largest oil-importing and consuming country in the world, purchased crude oil from Russia for Euro 2 billion in October, a decrease from Euro 2.4 billion the month before.
India accounted for 19% (EUR 2.6 billion) of Russia’s monthly export revenue from its top five importers, making it the country’s second-largest purchaser of Russian fossil fuels in October. Crude oil accounted for an estimated 77% of India’s imports, which were worth EUR 2 billion. India’s crude oil demands are met by imports to the tune of over 85%. Tankers subject to the oil price ceiling carried 34% of Russia’s seaborne crude oil and its products in October. ‘Shadow’ tankers transported the rest, which was exempt from the oil price cap.