Sanctions are working: India seeks replacement for Russian oil
29 February 2024 17:51
The US sanctions policy is forcing India to look for other supply channels to replace Russian oil, Kommersant Ukrainian reports 
citing Bloomberg.
According to the publication, Russia is still the dominant oil supplier to India, but the percentage of Russian oil in Indian contracts has begun to decline. Thus, total imports from Saudi Arabia this month are 22% higher than in January.
Indian refiners would like to buy more Russian oil, but they risk being hit by US sanctions.
In addition, Russian oil is currently only $2-4 per barrel cheaper than other supplies, and Russia is unlikely to offer greater discounts.
Thus, adherence to the sanctions regime currently looks like a better option for India, as violating it no longer guarantees good business deals.
India’s imports of Russian oil surged in 2022, when Russia offered large discounts amid Western sanctions. In 2023, the share of Russian oil in Indian purchases reached almost half.
