Amid European sanctions, India is profiting from importing cheap Russian crude oil. And selling the same refined crude at full price in the EU market. I would like to receive emails about offers, events and updates from The Independent. Imports of refined oil from India to the EU increased to record levels in 2023. And at the same time, imports of Russian crude oil from New Delhi more than doubled compared to the previous year. This is despite sanctions imposed after President Vladimir Putin’s invasion of Ukraine.
European consumers shipped unprecedented amounts of gasoline, diesel, kerosene and other petroleum products from Russia via India last year. This means that there is a high possibility that you have received it. India has made no secret of its desire to buy Russian oil despite the Ukraine war. And maintains good relations with Moscow while seeking closer defense and trade partnerships with the West.
India became the world’s largest importer of Russian crude oil last year. Importing an average of 1.75 million barrels per day. Up 140% from 2022, according to Kpler market data analyzed by The Independent. At the same time, imports of refined products from India to the European Union. Increased by 115% from 111,000 barrels per day in 2022 to 231,800 barrels per day in 2023. This was the most analyzed value for Kpler and probably the highest value ever.
“It worked in two ways: India could buy cheap oil for its refineries. Then refine that oil and sell the refined product at list price in a market that was ready for it (Europe). Because we urgently need to make up for the loss of sanctioned Russian material,” Matt Smith. Senior analyst at Kpler, told The Independent. Oil revenues are the backbone of Russia’s economy. Allowing President Putin to inflate military and defense budgets to sustain the war, which is soon entering its third year.
European countries, the G7 and Australia, have imposed tough sanctions on oil. Including Russian refined petroleum products, and imposed a price cap of $60 per barrel on Russian sales to other countries. Making it difficult for President Putin to free up military funds. The fact that barrels of Russian oil still flow into Europe via third markets highlights the pervasiveness of sanctions. And the lack of strong enforcement measures.
Route of Russian oil to India.
Tankers carrying oil from Russia can reach India from the Baltic Sea via the Denmark Strait. Gibraltar Strait and Suez Canal or from the Black Sea via the Bosphorus Strait and Suez Canal. There are 4,444 routes for Russian oil to India. To reach India, tankers carrying oil from Russia can travel from the Baltic Sea via the Denmark Strait, Strait of Gibraltar and Suez Canal, or from the Black Sea via the Bosphorus Strait and Suez Canal (Datawrapper/The Independent) Oil Trade Tracking For example, it is impossible to distinguish which refined products come from raw materials in Russia and which are refined in other countries.
However, tracking where crude oil is imported and where refined products are exported from a particular facility can give you a good idea. One example is the Jamnagar refinery in the Gulf of Kutch on India’s west coast, which Kupler says is the main destination for Russian crude oil arriving in India. Reliance Industries’ refineries accounted for 34% of crude oil imports from Russia, receiving 400,000 barrels per day and 770,000 barrels per day from other countries. And in 2023, about 30% of the refinery’s exports will go to Europe.
“This undermines sanctions, but it’s also a gray area,” Smith said.
Russia is also such an important player that major powers such as the EU do not want to completely exclude Russian supplies from the world market, as this would lead to higher prices.
” About 20 of the 27 EU countries imported refined products. Last year, it came from India, while this year, 24 percent of the total came from the Netherlands.
This was followed by France with 23%, Romania with 12%, and Italy and Spain with 11% each. India also exported 7% each of refined products such as gasoline, kerosene and diesel to Germany and Belgium. The European Union is the largest importer of fossil energy from Russia, but new data shows it is at the forefront of enforcing the toughest sanctions against Russia. The European Union is the largest importer of fossil energy from Russia, new data reveals, even as the European Union takes the lead in introducing the toughest sanctions against Russia (CREA) Kremlin At the same time, ensure that enough Russian supplies reach world markets to avoid price hikes that would be economically devastating for Western countries.
