'India's Russian crude imports averted havoc in global oil market'

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Last Updated27/12/2023

In response to Russia's invasion of Ukraine in February 2022, India significantly increased its imports of Russian crude oil
The Ministry of Petroleum and Natural Gas emphasised the crucial role played by Indian refiners in absorbing 1.95 million barrels per day of Russian oil.

The Ministry of Petroleum and Natural Gas highlighted the significance of India's role in stabilising the crude oil market amidst geopolitical tensions.
The ministry representative warned that if India had not absorbed Russian oil, the deficiency in the market could have led to a significant increase in crude oil prices, possibly by $30-40 per barrel.
India, as the world's third-largest consumer of crude oil, relies on imports for over 85% of its requirements.
The country's refining capacity exceeds 250 million tonnes per annum, highlighting its substantial role in the global energy landscape.
Russia, initially a marginal player in India's oil imports, became the top supplier as Western nations boycotted Russian oil post the Ukraine invasion.

Indian refiners took advantage of deep discounts offered by Russia, leading to a shift in supplier dynamics.
India asserted its sovereignty, stating that it pursued oil imports based on what was economically beneficial for the country and the world.
The move to buy discounted Russian crude irked Western nations aiming to isolate Russia economically.
Western sanctions on Russia posed challenges for Indian refiners in terms of payments, logistical arrangements, and insurance for oil shipments.
The ministry highlighted difficulties faced by Indian banks in processing payments for Russian oil purchases in dollars.
Indian refiners faced challenges with banks seeking proof that the oil price, excluding delivery-related costs, adhered to the imposed price cap.