India's oil imports from Russia rose to a record 2.1 million barrels per day in May. This is due to the decrease in China's demand for Russian oil.
Points of attention
- Russia's share as an importer and consumer of oil in India increased to 41% in May.
- The EU and the USA introduced an embargo on the import of Russian oil and oil products, which caused a significant decrease in exports to Western countries.
- Russia is forced to look for new sales markets in Asia and to circumvent sanctions through the search for alternative trade routes.
How much Russian oil did India buy in May?
As noted, this increased Russia's share as the third largest importer and consumer in the world to almost 41% last month. Meanwhile, supplies from Saudi Arabia fell to a 10-month low after Saudi Aramco raised oil futures for a second month in May.
According to Reuters, refiners in India pounced on Russian oil, which is sold at a discount after some European countries refused to buy from Moscow due to its invasion of Ukraine in February 2022. In addition, similar types of oil from regions mainly in the Middle East are more expensive.
In May, India shipped about 5.1 million barrels per day of oil, which is about 5.6% more than in April. Imports of Russian oil to India in May grew by 14.7% compared to April and by 5.9% compared to last year.
Last month, Russian oil was available in large quantities and at better discounts due to lower demand from China, said a representative of one of the Indian refineries.
What is known about sanctions against Russian oil
Sanctions against Russian oil are an important pressure tool used by Western countries to limit Russia's financing of the war against Ukraine. From December 5, 2022, the EU introduced an embargo on the import of Russian crude oil by sea, and from February 5, 2023, it expanded it to petroleum products.
The US also introduced a complete ban on the import of Russian oil and oil products.
These sanctions led to a significant decrease in Russian oil exports to the West, forcing Russia to look for new sales markets, particularly in Asia, or ways to circumvent the sanctions.
