Indian oil refineries continue to actively purchase Russian oil, trying to maintain access to cheap energy resources without upsetting the West. In recent days, the import of Russian oil has significantly decreased, but the interest in it remains.
Four of India’s seven largest oil refining companies, including state-owned Indian Oil Corp. and Bharat Petroleum Corp., are actively purchasing Russian oil despite increasing international sanctions. Overall, about 10 cargoes of crude oil, including the Urals grade, were bought by Indian companies recently. Meanwhile, Hindustan Petroleum Corp. continues to explore new procurement opportunities, planning shipments for January.
Russian oil remains attractive for India due to significant discounts. According to traders, one barrel of oil from Russia currently costs about 40-45 dollars. However, the sanctions imposed on Rosneft and Lukoil PJSC will impact imports in 2024, though trade is likely to continue, albeit in smaller volumes.
In June 2023, India imported over 2 million barrels of Russian oil per day, and by December this figure is expected to decrease to 1.3 million. A possible further reduction in imports remains a subject of discussions between New Delhi and Washington, as negotiations on a trade agreement between the countries are still unfinished.
Despite the sanctions, India seeks to balance its energy needs with geopolitical challenges, highlighting the relevance of the country’s future economic strategies.
| Refiner | Import (barrels per day) | Status |
|---|---|---|
| Indian Oil Corp. | Active | Procurement continues |
| Bharat Petroleum Corp. | Active | Procurement continues |
| Hindustan Petroleum Corp. | Planning | Searching for new sources |
| Nayara Energy | Active | Procurement does not stop |
| Reliance | Avoiding | No procurement |
