India Falls to 3rd in Russian Fuel Buys as Refiners Cut Imports
Overview
India dropped to third place among buyers of Russian fossil fuels in December, with Reliance Industries and state refiners significantly reducing crude oil imports. This shift, driven by sanctions and OFAC actions, saw Turkiye overtake India as the second-largest importer, while China remains the top buyer.
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India Slips in Russian Fuel Ranks
India has fallen to third place in the ranking of Russian fossil fuel buyers, a significant shift from its previous position. In December, the nation's total imports of Russian hydrocarbons amounted to €2.3 billion, marking a substantial decrease from €3.3 billion recorded in November, according to the Centre for Research on Energy and Clean Clean Air (CREA).
Sanctions Drive Refiner Cutbacks
The reduction in purchases was largely attributed to major Indian refiners, including Reliance Industries and state-owned enterprises, scaling back their imports. Reliance Industries' Jamnagar refinery, in particular, halved its Russian crude imports. This move comes in the wake of U.S. sanctions imposed on key Russian oil producers like Rosneft and Lukoil, designed to curb Kremlin funding for the Ukraine war. Companies such as Hindustan Petroleum Corporation Ltd (HPCL) and Mangalore Refinery and Petrochemicals Ltd (MRPL) have also temporarily halted or reduced purchases, though Indian Oil Corporation (IOC) continues to source from non-sanctioned Russian entities.
Shifting Global Trade Routes
Turkiye has now claimed the second-largest importer spot, purchasing €2.6 billion of Russian hydrocarbons in December, while China retained its position as the top buyer, accounting for €6 billion. Russia supplied approximately 25% of India's crude oil imports in December, down from 35% the prior month. This decline underscores a broader global recalibration of energy trade flows as Western nations continue to shun Russian oil.
