New Delhi: India, the third-largest oil importer globally, acquired Russian crude worth €49 billion in the third year of the Ukraine war, a global think tank reported.
India, which traditionally sourced most of its oil from the Middle East, turned to Russian crude in significant volumes after the Ukraine conflict erupted in February 2022. Western sanctions on Russia and a decline in European demand resulted in discounted Russian crude, making it an attractive option for India.
This shift saw Russian oil’s share in India’s total crude imports surge from under 1 per cent to about 40 per cent in a short span.
“The third year of the invasion has reinforced Russia’s grip on new markets,” stated the Centre for Research on Energy and Clean Air (CREA) in its latest findings. “China ($78 billion), India ($49 billion), and Turkey (€34 billion) were the top buyers, collectively contributing 74 per cent of Russia’s fossil fuel revenue.”
According to the report, India’s Russian oil imports grew by 8 per cent compared to the previous year.
Russia’s global earnings from fossil fuel exports reached €242 billion in the third year of the conflict, totalling €847 billion since hostilities began.
Some Indian refineries processed Russian crude into refined fuels like gasoline and diesel, which were then exported to European and G7 markets.
“G7+ nations purchased oil products worth €18 billion from six refineries in India and Turkey that process Russian crude,” CREA noted. “Approximately EUR 9 billion of this originated from Russian crude.”
Between February and September 2024, increased Russian crude processing in India and Turkey resulted in a 10 per cent rise in exports to G7+ countries.
This led to an increase in Russian oil prices, raising its value for these exports by roughly 25 per cent, the report indicated.
The European Union (EU) was the largest buyer of refined products from Indian and Turkish refineries. About 13% of their output in the third year of the invasion was exported to the EU.
The leading EU importers were the Netherlands (€3.3 billion), France (€1.4 billion), Romania (€1.2 billion), Spain (€1.1 billion), and Italy (€949 million).
Outside the EU, Australia was the top individual buyer, importing €3.38 billion in refined oil.
The report also detailed oil transshipment trends. “In the third year of the war, 23 per cent of oil transshipped through EU waters was destined for China, 11 per cent for India, 10 per cent for South Korea, and 2 per cent for Turkey,” CREA stated, with other regions accounting for the rest.
Between February and September 2024, 331 Russian crude shipments reached India’s Sikka port in Gujarat, averaging $90.8 per barrel, CREA reported.
During this period, 65 per cent of the tankers were subject to the Western-imposed price cap.
“Enforcing the price cap on cost, insurance, and freight (CIF) prices could have reduced Russia’s crude export earnings by 34 per cent—or roughly €5.8 billion in 2024,” the report estimated.
Following sanctions imposed by the West, Russia redirected its oil exports away from Europe, offering substantial discounts—sometimes as high as $18-20 per barrel—to secure buyers like India.
However, these discounts have since narrowed, falling below $3 per barrel in recent months.