Indian oil refineries have gone to full capacity processing Russian oil, oil products from which are sold to Western countries despite sanctions.
Points of attention
- Indian oil refineries processing Russian oil are crucial in circumventing Western sanctions by selling oil products to European countries.
- The collaboration between Indian refineries and Russia has significantly increased Russian oil exports, particularly to China and India, bypassing Western restrictions.
- India's contribution to processing Russian oil and supplying restricted technology to Russia has raised concerns among US and European officials regarding sanctions evasion.
- The increase in Russian oil supplies to India reflects the intricate dynamics of international trade and the impact of geopolitical conflicts on global oil markets.
- The influx of Russian oil processed by Indian refineries highlights the need for regulatory oversight and accountability in preventing the financing of geopolitical aggressions through trade partnerships.
How Indian refineries help Russia circumvent Western sanctions on oil sales
It is noted that after the start of the full-scale war against Ukraine unleashed by the Kremlin, the aggressor country increased the export of its own crude oil by 900%.
So, only during 2023, Russian oil supplies increased to 82 million tons compared to 4.5 million tons in 2021.
It is emphasized that this is connected with the sending of Russian crude oil for processing to India, from where finished oil products are exported to EU countries.
India has turned into a powerful refinery for Russian oil. It would be great if Russian oil was coming to India on Western vessels operating under G7 control, but much of that oil is supplied by Putin's shadow fleet, which means that India is helping finance Russia's invasion of Ukraine. This has to stop, says Robin Brooks, a senior fellow at the Brookings Institution.
Russian oil supplies to China also increased by a third — from 80 million tons in 2021 to 107 million tons in 2023.
As a result, 78% of Russian oil exports went to China and India, while in 2021 their share was 32%.
Thus, Chinese and Indian oil traders are responsible for the rapid increase in the number of "shadow fleet" tankers.
What is known about India's purchase of Russian oil to circumvent Western sanctions
According to analysts from the Institute for the Study of War (ISW), the increase in the volume of goods supplied from India to Russia in order to circumvent Western sanctions is taking place against the background of a large amount of Indian rupees accumulated by the aggressor country due to the sale of oil.
ISW refers to information from Bloomberg, whose journalists quote officials from the EU and the USA. US and European officials say India has become the second largest supplier of restricted technology such as microchips, circuits and machines to Russia.
ISW refers to information from Bloomberg, whose journalists quote officials from the EU and the USA. US and European officials say India has become the second largest supplier of restricted technology such as microchips, circuits and machines to Russia.
