India's Russian Oil Imports Hit Nine-Month High In April Amid Sanctions Adjustments

India's imports of Russian oil surged to a nine-month high in April, following the resumption of shipments on non-sanctioned tankers operated by Sovcomflot, Russia's largest shipping company.

Data from shipping and trade sources indicate that Indian refiners imported nearly 1.8 million barrels per day (bpd) of Russian oil, marking an 8.2% increase over the previous month and raising Russia's share of India's oil imports to

The increase in Russian oil imports comes after Indian refiners briefly halted purchases from Sovcomflot's tankers. This cessation followed the U.S. designation of the company's ships, including 14 tankers, as being in breach of Western sanctions.

These sanctions were imposed by the West in response to Russia's invasion of Ukraine in 2022, and they include price caps on oil and oil products loaded at Russian ports, aimed at reducing Moscow's oil revenues that fund its military efforts.

India, the world's third-largest oil importer and consumer, has emerged as the top client for Russian seaborne oil.

This relationship has been bolstered by the competitive pricing of Russian crude, which Indian refiners have increasingly favoured over traditional suppliers from the Middle East.

In April, the first month of India's fiscal year 2024/25, the country imported a total of 4.8 million bpd of oil. This figure represents a 6.5% decline from March but is marginally higher than imports in April 2023.

Despite the overall drop in imports, the increase in Russian oil purchases has had a significant impact on the composition of India's oil basket.

The surge in Russian oil imports has led to a reduction in India's reliance on Middle Eastern oil. The share of oil from the Middle East in India's total imports fell to 41% in April, down from 46% in March.

This shift has subsequently reduced the Organisation of the Petroleum Exporting Countries' (OPEC) share in India's crude basket to 46% from 53% over the same period.

India's pivot towards Russian oil has also affected its imports from other Commonwealth of Independent States (CIS) countries, including Kazakhstan and Azerbaijan.

The share of oil from these CIS countries in India's total imports rose to 41% in April, up from 37% in March.

This trend reflects a broader diversification of India's oil supply sources as it seeks to balance its energy security with geopolitical considerations.

The strategic shift in India's oil import patterns highlights the complex dynamics of the global oil market, particularly in the context of geopolitical tensions and economic sanctions.

While India continues to engage with traditional suppliers in the Middle East, the attractiveness of discounted Russian crude has reshaped its import strategies.

This realignment underscores India's pragmatic approach to securing energy resources in a volatile international environment.

As India navigates these changes, its refiners are likely to continue exploring diverse sources of oil to optimise costs and ensure a steady supply.

The evolving landscape of India's oil imports will remain a key factor in global energy markets, influencing trade flows and pricing dynamics.

India's increasing imports of Russian oil, driven by favourable economic terms and geopolitical shifts, highlight the nation's strategic adjustments in its energy procurement policies.

This trend not only underscores India's significant role in the global oil market but also reflects the broader implications of international sanctions and market reconfigurations in response to geopolitical developments.

Reuters Inputs