India’s Russian oil imports to remain steady despite sanctions – Reuters

Purchases by New Delhi were expected to drop due to US punitive measures on Rosneft and Lukoil

India’s oil imports from Russia are expected to remain steady in December despite US sanctions on Moscow’s top two producers, Reuters reported on Wednesday.

Indian refiners are buying from non-sanctioned entities that are offering large discounts for Russian oil, according to the report.

India’s purchases of Russian crude are likely to exceed 1.2 million barrels per day, Reuters said, citing financial markets data provider LSEG. 

A trade source told the news agency that oil imports from Russia could rise to an average of 1.5 million barrels per day by the end of the month.

The South Asian nation’s largest state-owned refiner, Indian Oil Corp, is buying Russian volumes in line with pre-sanctions levels, the news agency said, citing two sources. The sources added that Bharat Petroleum has raised its January imports to at least six cargoes from two in December, and Hindustan Petroleum is also in talks for January purchases.

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The US announced sanctions on October 22 that set a deadline of November 21 for companies to wind down dealings with Russian oil majors Rosneft and Lukoil.

The EU has set a January 21 deadline, after which it will not accept fuel from refineries that handle Russian crude. 

India is the world’s third-largest crude importer. It imported 1.77 million barrels per day of Russian oil in November, up 3.4% from October.

Bilateral ties between India and Russia have remained strong despite pressure from Western sanctions over the Ukraine conflict. Russian President Vladimir Putin met with Indian Prime Minister Narendra Modi earlier this month and pledged to ensure uninterrupted energy supplies to India.

Russia has been India’s top oil supplier since 2022, after which the South Asian nation also emerged as a major exporter of refined fuels to Europe.

A top official said on Tuesday that India and Russia are creating a framework to boost bilateral trade to $100 billion by 2030. Energy and defense currently dominate trade between the two countries.