Russian crude oil imports to India decimated last year. This was stated by the Bank of Baroda, an Indian financial institution controlled by the state. While Russian crude represented two percent of India’s annual oil imports in 2021, it was nearly 20 percent last year.
Oil at a discount
Western countries have been restricting energy imports from Russia following Russia’s invasion of Ukraine. Moscow is therefore selling oil and other raw materials at a discount to countries such as India and China. India, which is Asia’s third-largest economy and the world’s third-largest oil importer, saved about five billion dollars (about 107 billion kronor) last year by increasing oil supplies from Russia. This means a saving of $89 per tonne of crude.
Despite pressure from Western European countries and the United States, India has refused to comply with Western sanctions on Russian imports. New Delhi has also not explicitly condemned the Russian invasion of Ukraine. India defends its oil purchases on the grounds that as a country dependent on energy imports and with millions of people living in poverty, it is unable to pay higher prices.
Analysts’ expectations
With no end in sight to the armed conflict in Ukraine, some analysts expect Russia to continue to offer cheap oil to Asia’s biggest energy importers. “We expect Russian oil offtake to remain limited to these two countries (India and China), keeping discounts high,” analyst Vandana Hari of Vanda Insights told the BBC.
Source Czech Press Office
