New Delhi2 hours ago
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India has continued to buy crude oil from Russia despite repeated objections from US President Donald Trump. In October, crude oil worth $2.5 billion (about Rs 22.17 thousand crore) came to the country from Russia, making India the second largest buyer in the world. This information has been given by the Helsinki-based Center for Research on Energy and Clean Air (CREA) in its report.
According to CREA, China stood first with imports worth 3.7 billion dollars (about Rs 32.82 thousand crores). Overall, India’s fossil fuel imports from Russia have reached $3.1 billion (about ₹27.49 thousand crore), while China’s total figure stood at $5.8 billion (about ₹51.44 thousand crore). The impact of the US ban may be visible in the December figures, but India still continues purchasing.
China also bought the most coal from Russia China remained the biggest buyer of Russian coal last month, ahead of India and Turkey. It bought coal worth $760 million. At the same time, India imported Russian coal worth $351 million and oil products worth $222 million in October.
Türkiye remains the largest buyer of Russian oil products Türkiye was the largest buyer of Russian oil products, with imports worth $957 million, about half of which was diesel. It also bought $929 million worth of Russian pipeline gas and $572 million worth of crude oil.
European Union purchased the most gas Europe was the largest buyer of Russian gas. It imported $824 million worth of Russian LNG and pipeline gas in October and bought $31.1 million worth of Russian crude oil.
The effect of American sanctions may be visible in December
Western countries are pressuring India and China to curb purchases of Russian oil, which they argue is helping fund Russia’s war in Ukraine. Last month, the US imposed sanctions on Rosneft and Lukoil, Russia’s two top oil exporters. The impact of these measures can be seen in the December import data of India and China.
5 big companies including Reliance will not buy Russian oil
India has made a big cut in the purchase of crude oil from Russia for delivery in the month of December. According to Bloomberg report, the country’s five major refiner companies have not placed any new orders for December.
This decision has been taken amid US sanctions and India-US trade talks. In August, US President Donald Trump had imposed 50% tariff on India for buying Russian oil.
After this he banned all transactions with Russia’s state oil companies Rosneft and Lukoil. These restrictions are coming into effect from November 21.
Reliance, BPCL, HPCL did not place orders for oil purchase.
Reliance Industries, Bharat Petroleum, Hindustan Petroleum, Mangalore Refinery and HPCL-Mittal Energy did not place new orders to Russia for December. These companies have accounted for two-thirds of India’s Russian imports so far this year.
Only Indian Oil (IOC) and Nayara Energy are buying Russian oil for December. IOC is buying from non-sanctioned suppliers, while Nayara, in which Russia’s Rosneft has a 49% stake, is completely dependent on Russian supplies.
India is now looking for alternative suppliers
Russia has accounted for about 36% of India’s oil supply this year, but refineries are now looking for alternatives. IOC has bid to purchase 24 million barrels of oil from the US and other regions in January-March. At the same time, Hindustan Petroleum has purchased 40 lakh barrels of oil from America and West Asia for January.
Saudi Aramco and Abu Dhabi National Oil Company (ADNOC) have met Indian officials and assured to continue the supply.
50% US tariff on India, penalty on buying oil from Russia
Trump has imposed a total of 50% tariff on India so far. There is a 25% reciprocal i.e. tit-for-tat tariff and a 25% penalty on purchasing oil from Russia.
The reciprocal tariff came into effect from August 7 and the penalty from August 27. America has imposed economic sanctions on India to put pressure on Russia.
Trump has many times claimed that Russia promotes war in Ukraine with the money received from India’s oil purchases.
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