AsianOil: India defends Russian oil purchases

India has defended its significant scale-up in purchases of Russian oil over the past two years, with Oil Minister Hardeep Singh Puri stating on November 9 that global oil prices “would have hit the roof” if it had rejected Russia’s supplies.

India’s purchases of Russian oil were marginal prior to Moscow’s invasion of Ukraine in February 2022. But it is now the top importer in the world, with volumes rising 9.1% year on year in the six months ending September 30 to 1.91mn barrels per day (bpd). Though New Delhi and Moscow enjoy warm ties, India’s ramp-up in Russian oil imports is not politically motivated but rather driven by the steep discount that Russian crude trades at versus international benchmarks, as a result of Western sanctions.

"What many around the world don’t seem to realise is that global oil prices would have hit the roof if India had not bought oil from Russia," Indian Oil Minister Hardeep Singh Puri wrote on X, formerly known as Twitter, late on November 8. “We owe it to our citizens – India will buy oil from wherever our companies get the best rates.”

In September, Russian oil accounted for around two-fifths of India’s total oil imports, with Russia leading as the country’s top supplier followed by Iraq and Saudi Arabia.

India has faced criticism from Western leaders for its significant oil trade with Russia, as it provides revenues that the Kremlin can use to fund its war in Ukraine. Over the past two years India has also become a major fuel supplier to the EU, raising concerns that the bloc is receiving petroleum products refined from Russian oil, undermining its embargo on direct purchases of Russian fuels.

In an update on November 8, the Finland-based Centre for Research on Energy and Clean Air (CREA) estimated that India took 37% of Russia’s total oil exports between December 5, 2022, which was the start of the EU’s ban on Russian oil purchases, and the end of October this year. It was the second-biggest buyer of Russian oil after China, which received 47%.

Over the same period, India also received 17% of Russian coal exports.

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