India's Russian Oil Imports Plummet as Refiner Cuts Bite
Overview
India slipped to third place in Russian hydrocarbon purchases in December, with imports falling to €2.3 billion from €3.3 billion in November. Major buyers Reliance Industries and state-owned refiners significantly reduced crude oil intake following fresh U.S. sanctions. Turkiye now ranks as the second-largest importer.
Stocks Mentioned
India's Russian Oil Imports Decline Sharply
India's demand for Russian fossil fuels saw a significant drop in December, pushing the nation to third place among buyers. Total imports of Russian hydrocarbons tumbled to €2.3 billion, a steep decline from November's €3.3 billion, according to data from the Centre for Research on Energy and Clean Air (CREA).
Shifting Buyer Ranks
Turkiye surged past India to become the second-largest importer, acquiring Russian hydrocarbons worth €2.6 billion during the month. China maintained its dominance, remaining the top buyer and securing about 48% of Russia's export revenues from the surveyed importers, equivalent to approximately €6 billion.
Refinery Reductions Drive Downstream
Crude oil constituted the bulk of India's Russian imports in December, accounting for 78% or €1.8 billion. Coal imports followed at €424 million, with oil products making up the remaining €82 million. Notably, India's Russian crude imports decreased by 29% month-on-month, hitting their lowest point since the price cap policy was implemented.
Impact of Sanctions
The reduction was spearheaded by Reliance Industries, whose Jamnagar refinery halved its intake of Russian crude. These imports were supplied by Rosneft, purchased before recent U.S. Office of Foreign Assets Control (OFAC) sanctions took effect. State-owned refiners also curtailed their Russian imports by roughly 15%.
Geopolitical Pressure Mounts
The cutbacks align with new U.S. sanctions targeting major Russian oil entities like Rosneft and Lukoil, aimed at limiting funding for the conflict in Ukraine. Consequently, companies such as Reliance Industries, HPCL, HPCL-Mittal Energy, and Mangalore Refinery have halted or scaled back their Russian oil purchases. Indian Oil Corporation, however, continues to source from non-sanctioned Russian entities. Russia's share of India's overall crude oil imports fell from 35% in November to approximately 25% in December.
