• Total Value: $2.9 billion spent on Russian crude oil in October.
• Overall Fossil Fuel Imports from Russia: €3.1 billion
  • Crude Oil: 81% (€2.5 billion)
  • Coal: 11% (€351 million)
  • Oil Products: 7% (€222 million)
• Ranking: India was the second-largest buyer of Russian fossil fuels, after China.

Context: Sanctions and Discounts

• The US imposed sanctions last month on Russian oil giants Rosneft and Lukoil to limit Kremlin revenues.
• EU and UK sanctions also affected some refineries, but India continued imports due to discounted Russian oil.
• Russian crude was selling $18–20 per barrel below global market prices, attracting India’s refineries.

Trends in Imports

• October imports increased 11% month-on-month compared to September.
• Private refiners accounted for over two-thirds of imports, but state-owned refineries nearly doubled their Russian crude volumes.
• Rosneft-owned Vadinar refinery in Gujarat raised production to 90%, relying entirely on Russian crude.
• The refinery’s exports fell 47% year-on-year, reflecting EU and UK sanctions.

Historical Shift

• Before February 2022, Russian crude was less than 1% of India’s total imports.
• Post-Ukraine invasion, Russian crude surged to nearly 40% of India’s total crude imports due to Western sanctions and discounted pricing.

Impact

• India’s strategy allows it to secure oil at cheaper prices, mitigating global supply disruptions and price spikes.
• US and European sanctions aim to reduce Russian oil exports, but India’s purchases highlight its strategic energy sourcing.