In July, India overtook China to become the largest importer of Russian oil as Chinese refiners bought less due to lower profit margins on fuel production. This was reported by Komersant ukrainskyi
with reference to Reuters.
Last month, Russian crude oil accounted for a record 44% of India’s total imports (2.07 million barrels per day), up 4.2% from June and 12% from a year ago.
According to the Chinese customs, this exceeded China’s July imports of oil from Russia by 1.76 million barrels per day through pipelines and transportation.
The agency notes that Indian refiners are buying Russian oil, which they sell at discounts after Western countries imposed sanctions on Moscow and reduced energy purchases in response to Russia’s invasion of Ukraine.
“India’s demand for Russian oil will increase if there is no further tightening of sanctions,” said a source at an Indian oil refinery.
It is noted that India’s trade with Russia has increased after Russia launched a war against Ukraine in February 2022, mainly due to oil and fertiliser imports, which helps to keep world prices down and control inflation.
India’s increased purchases are shifting the flow of Russian ESPO Blend crude from traditional Chinese buyers to South Asia. India’s ESPO imports jumped to 188,000 bpd in July as larger Suezmax tankers began to be used for transport, according to data.
Refineries in northeastern China are usually the largest buyers of ESPO due to their proximity, but their demand has fallen due to low fuel demand.
Iraq continued to be India’s second largest oil supplier last month, followed by Saudi Arabia and the United Arab Emirates.
According to the data, India’s purchases of oil from the Middle East increased by 4% in July, increasing the region’s share in India’s total oil purchases to 40% from 38% in June.
It is worth noting that today, 23 August, on the Day of the National Flag of Ukraine, Indian Prime Minister Narendra Modi will pay an official visit to Ukraine.
This is the first visit of the Indian Prime Minister to Ukraine in the history of bilateral relations.
Earlier, Bloomberg reported that the Indian prime minister will deliver a message from Russian President Vladimir Putin to Ukrainian leader Volodymyr Zelenskyy on Friday when he visits Ukraine.
In addition, India and Ukraine will also discuss the production of aircraft and aircraft engines and the joint creation of gas turbines.
As previously reported, Narendra Modi visited Moscow on 8 July. It was his first visit to Russia since the beginning of Russia’s war against Ukraine.
During an informal meeting with Putin, he made a direct call for an end to the war in Ukraine.