India Sees 29% Month-on-Month Decline in Russian Crude Imports
India’s imports of Russian crude oil have seen a significant decline, dropping 29% month-on-month to the lowest levels since the introduction of the price cap policy. This decrease is attributed primarily to a substantial reduction in imports by Reliance’s Jamnagar refinery and state-owned refineries. Despite this downturn, early January 2023 indicates a potential rebound in imports, as India has already procured over 1.1 million barrels of Russian crude oil.
Decline in Russian Crude Imports
According to the Centre for Research on Energy and Clean Air (CREA), India’s crude oil imports from Russia fell sharply in December, with total imports recorded at 1.2 million barrels, down from 1.8 million barrels in November. This decline is largely due to Reliance’s Jamnagar refinery, which cut its imports by nearly 49%. State-owned refineries also contributed to the reduction, decreasing their Russian crude imports by 15%. Despite the overall drop in Russian crude, India’s total oil imports saw a slight increase, indicating a complex landscape for energy procurement.
Value of Russian Fossil Fuel Imports
In terms of financial impact, India ranked as the third-largest buyer of Russian fossil fuels in December, with total imports valued at EUR 2.3 billion. This figure reflects a significant portion of India’s energy strategy, where crude oil accounted for 78% of the total imports, amounting to EUR 1.8 billion. Other imports included coal, valued at EUR 424 million, and oil products at EUR 82 million. Notably, India’s crude oil imports were higher in previous months, with values reaching EUR 2.5 billion in October and EUR 2.6 billion in November, highlighting a shift in purchasing patterns.
Impact of Sanctions on Russian Exports
The CREA report also noted that Russia’s fossil fuel export revenues experienced a slight decline, with a 2% drop month-on-month to EUR 500 million per day, marking one of the lowest figures since the onset of the Ukraine conflict. The total revenue from crude oil exports fell by 12% to EUR 198 million per day. This downturn reflects the ongoing impact of international sanctions and shifting market dynamics, as countries reassess their energy dependencies.
Global Context of Russian Fossil Fuel Purchases
Globally, Russia’s fossil fuel exports remain heavily concentrated, with China leading the way as the largest buyer, accounting for 48% of Russia’s export revenues from the top five importers. Turkiye has taken a prominent role in purchasing oil products, while the European Union continues to be a significant buyer of liquefied natural gas (LNG) and pipeline gas. In December, Indian refineries, along with those in Turkiye and Brunei, exported EUR 943 million worth of oil products to countries imposing sanctions, including the EU, the US, the UK, and Australia, illustrating the complex interplay of global energy markets amidst geopolitical tensions.
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