Rising Prices Cap India’s Thirst for Russian Oil

AFP/APP

New Delhi: Indian purchases of Russian crude in defiance of Western pressure over the Ukraine war have fallen to an 11-month low as the price tag on the discounted oil rises, figures show.

Since the invasion of Ukraine nearly two years ago, India has bought hundreds of millions of barrels of cut-price Russian crude, saving itself billions of dollars while bolstering Moscow’s war coffers.

The purchases have catapulted it to second place among Russia’s customers behind China, and Indian officials have made no secret of their decision to prioritise national interests over international sanctions against Moscow.

But the price of Russian crude has risen in the face of OPEC+ production cuts and increased demand from China, analysts say, making it less attractive to Indian customers.

Indian refiners bought 1.45 million barrels per day of Russian oil last month, their lowest amount since last January and down nearly 16 percent from November, according to global energy trade intelligence platform Kpler.

The “interplay between India and China” was a key driver of the change, Viktor Katona, lead crude analyst at Kpler, told AFP, “as both countries now vie for the same barrels.”.

The biggest beneficiary of the change is Moscow: Russian crude has been trading above $85 per barrel, reports say, even though a coalition of the G7, EU, and Australia imposed a $60 price cap a year ago.

New Delhi’s reduced imports will be welcomed by some European policymakers who have raised concerns over how Indian refiners have processed Russian crude into fuel for the European market, effectively bypassing the EU’s sanctions.