India has surpassed China as the world’s biggest importer of Russian oil in July, a comparison of import data has shown, Russia state media RT reported.
New Delhi has been increasing crude purchases due to discounts offered by Moscow as Russia shifts energy exports away from Western markets in response to Ukraine-related sanctions.
Describing India as a “big country” with a “big influence” on the Russian economy, Ukrainian President Volodymyr Zelensky on Friday said if India and Indians “change their attitude” towards Russia, the war will end because Russian President Vladimir Putin will end it. He was talking of India’s “record breaking” deals for oil from Russia.
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Russian crude accounted for 44% of India’s overall imports last month, rising to a record 2.07 million barrels per day (bpd), 4.2% higher than in June and 12% more than a year ago, according to data on Indian shipments from trade and industry sources.
China’s oil imports from Russia via pipelines and shipments in July totalled 1.76 million bpd, Chinese customs data shows. The drop in purchases by Chinese refiners is due to lower profit margins from producing fuels, data suggests.
Indian refiners have been increasing purchases of discounted Russian oil since February 2022, after Western nations imposed sanctions on Moscow and cut their energy imports in response to the conflict in Ukraine.
India has “global influence [as] a very big country…and a very big influence on the Russian economy. Today, you have it, and it’s true because really a lot of export possibilities for Russia [were] closed but India is open,” he said. Zelensky said he spoke openly with Modi about India’s oil purchases from Russia, which is generating billions of dollars that help fund Russia’s military.
“It’s about billions which are coming back, which Putin…uses it only because he has now really, officially, a war economy,” Zelensky said. “So, he [Putin] has to feel how war is expensive, and his society has to feel it.”
A Russian strike on Ukraine’s largest children’s hospital that coincided with the start of Prime Minister Narendra visit to Moscow last month made it clear that President Vladimir Putin does not respect India or its leader, Zelensky said while briefing the media after his talks with Modi.
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“India’s requirement for Russian oil is going to go up as long as there are no further tightening of sanctions,” an Indian refining source told Reuters.
India’s increasing purchases are changing the flow of Russian ESPO (Eastern Siberia–Pacific Ocean oil pipeline) Blend crude from traditional Chinese buyers to South Asia.
ESPO imports to India jumped in July to 188,000 bpd as larger Suezmax vessels were used, according to shipping data.
Iraq remained the second-largest oil supplier to India last month, followed by Saudi Arabia and the United Arab Emirates, according to Russian State media.
India’s crude purchases from the Middle East rose 4% in July, pushing up the region’s share in India’s overall mix to 40% from 38% in June, the data showed.
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