Russian Crude Purchases Rise by 40% in June, Account For 50% of India's Oil Imports

During the West Asia crisis, the US waived sanctions on purchase of Russian oil, which led to India continuing to import cheap Russian crude. The waiver on the sanctions ended on June 17.

The Wire Staff

During the West Asia crisis, the US waived sanctions on purchase of Russian oil, which led to India continuing to import cheap Russian crude. The waiver on the sanctions ended on June 17.

russian crude purchases rise by 40 in june account for 50 of india s oil imports

Photo: Marco Verch/Flickr. CC BY 2.0.

New Delhi: India’s imports of Russian crude in June have seen a 40% increase from May, averaging 2.66 million barrels per day (mbpd,). Russia now accounts for around 50% of India’s total oil purchases as refiners continue to prefer cheap Russian crude in wake of disruptions owing to the West Asia crisis, reported Mint.

While Russian crude imports in May averaged 1.91 mbpd, it further increased in June. The figure is in sharp contrast to that of February, when Russian oil supplies were impacted due to the sanctions imposed by the US, indicates data from trade intelligence firm Kpler.

"India's imports remained strong through June, supported by continued discounts and steady refinery demand. Russian barrels remain competitive against global benchmarks," Sumit Ritolia, senior manager for modelling at Kpler told Mint.

"Regardless of whether the US waiver is extended, we expect India's imports of Russian crude to remain robust, even if not at record-high levels," said Ritolia.

At present Russian crude is at a discount of $4-5 per barrel as compared to the global benchmark of Brent.

During the West Asia crisis, the US waived sanctions on purchase of Russian oil, which led to India continuing to import cheap Russian crude. The waiver on the sanctions ended on June 17.

The Wire had earlier reported that as per a latest analysis by the Centre for Research on Energy and Clean Air (CREA), crude oil accounted for 83% of India’s total Russian fossil fuel imports. Crude oil imports from Russia amounted to €4.8 billion ($5.55 billion) in May alone. Among other fossil fuel imports, oil products contributed €550 million, while coal imports were around €429 million.

Mostly due to the high imports of Russian crude, India’s overall crude import volumes rose to 8% month-on-month during May.

Last year, the Trump administration had imposed a 25% ‘penalty’ tariff on Indian exports citing the purchase of Russian crude, atop an already heavy 25% ‘reciprocal’ tariff. This penalty was withdrawn earlier this year but Trump had said that his government could consider re-imposing the levy were New Delhi to “directly or indirectly” resume intake.

This article went live on June twenty-second, two thousand twenty six, at five minutes past two in the afternoon.

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